undefined | Hiltzik: Trump wants you to invest your 401(k) in crypto and private equity. Should you bite? by Michael Hiltzik

Labor Secretary Lori Chávez‑DeRemer recently announced a proposed rule that would give plan sponsors a “safe harbor” to include cryptocurrencies and private‑equity funds in employees’ 401(k) accounts. In a Wall Street Journal op‑ed she framed the move as a way to undo “regulatory overreach” and open retirement savings to new kinds of innovation, arguing that employers have been overly cautious because of fear of lawsuits and bureaucratic scrutiny.

Critics, however, contend that the proposal serves the interests of alternative‑investment promoters who have long coveted access to the nearly $14 trillion pooled in defined‑contribution plans. The fiduciary duties of employers require them to act prudently and in workers’ best interests, a standard that has been reinforced by past lawsuits against plan sponsors that offered high‑fee, illiquid, or risky assets. Data from the Labor Department and industry observers show that only a small fraction of plans currently offer such alternatives, and that litigation risk, high fees, and opaque performance metrics have kept many employers away.

Both private‑equity funds and crypto assets carry significant drawbacks for the average retiree. Private‑equity returns have lagged public‑market benchmarks in recent years, while the sector remains illiquid and difficult to value. Cryptocurrencies are even more volatile, with dramatic price swings that can erase large portions of value in weeks. Because of these risks, many retirement professionals doubt that even a hands‑off regulatory stance will persuade plan sponsors to open the door to these “caveat emptor” investments, and plaintiff lawyers are likely to continue demanding higher standards of prudence for workers’ retirement savings.

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#401(k) #privateequity #cryptocurrencies #fiduciaryduties

When a company faces financial distress, its directors stand at a critical intersection of fiduciary duty and operational urgency.

#AssignmentfortheBenefitofCreditors #BankruptcyPetition #BusinessDistress #FiduciaryDuties/Directors #Insolvency

https://www.dailydac.com/board-prudence-amid-financial-distress/

Tax issues exist in most insolvency cases and the failure to address and plan for these can adversely affect multiple persons involved.

#AssetSale #BusinessDistress #Claims #FiduciaryDuties/Directors #Insolvency

https://www.dailydac.com/tax-considerations-in-insolvency-cases/

Special committees made up of independent directors can guide a company through the bankruptcy process without accusations of bias.

#FiduciaryDuties/Directors

https://www.dailydac.com/the-independent-directors-role-in-optimizing-corporate-workouts-and-bankruptcy-outcomes/

Third-party litigation funding (TPLF) is reshaping bankruptcy litigation, raising critical questions about ethics, fiduciary duties, and insider status.

#BusinessDistress #CashCollateral&DIPFinancing #Claims #FiduciaryDuties/Directors #Insolvency

https://www.dailydac.com/third-party-litigation-funding-tplf-and-ethical-issues-in-bankruptcy/

Insider lease agreements, where a property owner leases assets to a related entity, are prevalent in real estate-based businesses. While these arrangements can offer tax advantages and liability protections, they also present intricate ethical and legal challenges, particularly in bankruptcy scenarios.

#AssetProtection #BusinessDistress #FiduciaryDuties/Directors

https://www.dailydac.com/navigating-ethical-and-legal-complexities-in-insider-lease-agreements-in-the-context-of-bankruptcy/