JURIST - Paper Chase: SEC chief urges probe of Parmalat banks

In Monday's corporations and securities law news, the chairman of the SEC, William Donaldson, has indicated that regulators looking into the massive fraud at Parmalat should not concentrate solely on the company but also on the banks that financed the Italian dairy giant. AP has more.... In related news, Donaldson has called for closer cooperation between American and EU market regulators to help prevent damaging corporate scandals like the one at Parmalat. The SEC head proposed a formal dialogue between the SEC and the Committee of European Securities Regulators, which helps the European Commission draft EU financial legislation and the vital implementation guidelines. Reuters has more.... A jury of eight women and four men has been set in the Martha Stewart stock fraud trial. Additionally, the federal judge presiding in the case has ruled that the defense cannot argue that Stewart is being prosecuted for asserting her innocence, exercising her right to free speech, nor can the defense ask jurors to speculate why Stewart was not charged with insider trading. AP has more.... Hollinger International has filed a lawsuit against former CEO Conrad Black aimed at preventing him from selling his majority share in the company to Britain's wealthy Barclay brothers. Reuters has more.

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