Shearman And Sterling

Shearman & Sterling is firmly committed to helping clients achieve their business objectives. With a focus on our clients’ changing needs and goals, we deliver a wide range of materials and services to keep them up to date and informed.

Perspective

Volatile Reaction to UK “Mini-Budget”

September 30, 2022

On 23 September, the new U.K. Government conducted the emergency fiscal event it had scheduled when taking power at the beginning of the month. Many of the tax measures had been trailed in the interim, largely cancellations of previously announced rate increases. There were additional surprise announcements made during the speech by Chancellor of the Exchequer Kwasi Kwarteng, including the abolition of the top 45% rate of personal income tax. The package, implementing the sharpest U.K. tax cuts in 50 years, was presented as a growth plan to target a trend rate of 2.5% medium term growth.

It has been quite a bracing time since then, as noted below.

Perspective

Shearman & Sterling on Restructuring Market Featured in GRR

September 28, 2022

Alexander Wood has been featured in GRR’s article, “Strong US dollar could lead to increase in restructurings, lawyers say after pound hits record low.” The article presents the opinions of a number of leading individuals in the restructuring market as they consider the impacts of the UK governments adoption of a tax cutting budget.

Perspective

Law Commission Releases Consultation Paper on Its Review of the Arbitration Act 1996

September 28, 2022

In January 2022, the Law Commission of England & Wales launched a review of the Arbitration Act 1996 (the Act) as part of its 14th programme of law reform. We shared our initial thoughts on the Commission’s review earlier this year. On 22 September 2022, the Commission published a detailed consultation paper and a shorter summary of that paper, inviting comments from the public. In this post, we look at the key highlights and proposals in the consultation paper.

Perspective

SEC’s Enforcement Actions and Public Pronouncements Reinforce Approach on Digital Assets

September 27, 2022

On September 17, 2022, both the Securities and Exchange Commission and Ripple Labs, Inc. (with its Executive Chairman and CEO) filed motions for summary judgment in the SEC’s suit alleging that Defendants sold billions of units of a virtual currency called XRP, which in the SEC’s view should be considered a “digital asset security.” According to the SEC’s Complaint, the sale of XRP would constitute an unregistered sale of securities in violation of the registration and disclosure requirements of federal securities laws.

Perspective

Relationships Shine During a Recession

September 23, 2022

This isn’t the first time—and it certainly won’t be the last—that private equity firms are bracing for an economic downturn. Although private equity firms usually earn their best returns after a recession, only the most strategic private equity firms get through a downturn successfully. While the U.S. is not quite in a recession (technically), private equity investors and their portfolio companies are dealing with persistent inflation, interest rate hikes, talent shortages, supply chain issues and continued geopolitical tensions. It’s safe to say the U.S. is teetering on the edge of a recession and experiencing softer market conditions, at the very least.

Perspective

LatAm H2: The Growing Importance of Low-Carbon Hydrogen in Latin America

September 22, 2022

Partners Dan Feldman, Omar Samji, Roberta Berliner Cherman and counsel Gabriel Salinas have published a report on the Growing Importance of Low-Carbon Hydrogen in Latin America.

Perspective

A Step Towards Removing the Red-Tape For Europe’s Green Hydrogen Sector

September 15, 2022

On September 14, 2022, the European Parliament (the Parliament) adopted its proposed amendments to the Renewable Energy Directive (Recast) 2018 (RED II). Amongst other things, this text would make the requirements for the production of renewable fuels of non-biological origin (RFNBO) (which includes green hydrogen, green ammonia and other e-fuels) more lenient than those proposed by the European Commission in its draft Delegated Act (published in May 2022).

Perspective

Securitization as an Integral Part of a Corporate Capital Structure

September 15, 2022

Partner Bjorn Bjerke (New York-Finance) authored chapter 3 titled “Securitization as an Integral Part of a Corporate Capital Structure” in the latest edition of International Comparative Legal Guide – Securitisation Laws and Regulations 2022 (ICLG – Securitisation).

Perspective

Finance Practice Contributes US Securitization Chapter in Legal 500 Guide

September 12, 2022

Shearman & Sterling’s Bank Finance lawyers Bjorn Bjerke, Barbara Zylberg and Caleb Chua contributed a chapter as exclusive authors for The Legal 500: Securitization Comparative Guide. This is the third edition of the chapter authored by Shearman & Sterling. The guide, which focuses on securitization, provides the latest overview of securitization laws and regulations specific to the United States.