Chicago Region Environmental and Transportation Efficiency Program

• Additionally, the SEC charged DBRS with violating disclosure and internal control provisions of the federal securities laws in rating certain commercial mortgage-backed securities (CMBS).
• To settle the charges, DBRS agreed to pay $8 million in civil penalties and KBRA agreed to pay $4 million in civil penalties.
• “If there’s an allegation of wrongdoing at the credit rating agency, the Commission must be able to review preserved documents to determine what happened.
• The order finds that DBRS failed to retain these messages in violation of recordkeeping provisions of the federal securities laws.

• Arizona, California and Nevada have narrowly averted a regional water crisis by agreeing to reduce their use of Colorado River water over the next three years.
• Nonetheless, as a close observer of western water policy, I see it as an important win for the region.
• Seven western states – Colorado, Wyoming, Utah, New Mexico, Arizona, Nevada and California – and Mexico rely on water from the Colorado River for irrigation for 5.5 million acres and drinking water for 40 million people.
• We now know, thanks to tree-ring science, that its framers wildly overestimated how much water the river contained on a reliable basis.

Overallocated and shrinking

• First, the 1922 Colorado River Compact and other elements of the Law of the River dole out rights to more water than the river provides.
• Second, a historic drought that commenced in 2000 has caused water levels in the reservoirs to plummet by 75%.
• Third, climate change has reduced the flow in the river by more than 1 million acre-feet.
• The message to states was clear: If you can’t reach a consensus, we’ll act to protect the river.

Will payments promote long-term conservation?

• The states have agreed to reduce their consumption of Colorado River water by 3 million acre-feet by 2026, which represents about 14% of their combined allocations.
• This pact temporarily protects water supplies for cities, farmers and tribes.
• I expect that water reallocation, with water moving from lower-value to higher-value uses, will play a key role.
• Water marketing – negotiating voluntary sales or leases of water – is a tool to facilitate that transition.

Negotiation, not litigation

• These discussions will be more painful because federal funding will expire and cuts will be more severe.
• Thus far, the Upper Basin states – Wyoming, Colorado, Utah and New Mexico – have not had to endure significant water use cuts.
• But litigation is a lengthy, costly process fraught with uncertainty.

• Washington, D.C.--(Newsfile Corp. - February 16, 2023) - The Securities and Exchange Commission today announced that The Options Clearing Corporation (OCC) will undertake remedial efforts and pay $17 million in penalties to settle charges that it failed to comply with its SEC-approved Stress Testing and Clearing Fund Methodology rule during certain times between October 2019 and May 2021.
• The SEC’s order further finds that OCC failed to modify its Comprehensive Stress Testing System and did not provide timely notification to the SEC of this failure as required by Regulation SCI.
• "OCC is the sole registered clearing agency for exchange listed option contracts in the United States," said Chair Gary Gensler.
• The SEC appreciates the assistance of the Commodity Futures Trading Commission.

• Washington, D.C.--(Newsfile Corp. - January 23, 2023) - The Securities and Exchange Commission today announced settled charges against Bloomberg Finance L.P. (Bloomberg) for misleading disclosures relating to its paid subscription service, BVAL, which provides daily price valuations for fixed-income securities to financial services entities.
• “This matter underscores that we will hold service providers, such as Bloomberg, accountable for misrepresentations that impact investors.”
  The SEC’s order finds that Bloomberg violated section 17(a)(2) of the Securities Act.
• Without admitting or denying the findings, Bloomberg agreed to cease and desist from future violations and to pay a $5 million penalty.
• The SEC’s order notes that Bloomberg voluntarily engaged in remedial efforts to make improvements to its BVAL line of business.