Financial Regulation Opportunities Forum

[Anonymous User]

Hey all, thanks in advance!

I want to do corporate work at a firm, dealing with either M&A or Securities, and I'll be at an NYC V5 this coming summer. Given that, I have a great opportunity to intern at one of a couple places next semester - either the SEC (Enforcement), the Federal Reserve, or a compliance-based group at KKR.

I'm leaning toward the SEC for now, but which might give me the most insight/experience relevant to my later-desired work?

And on a similar note, if I were to want to move into government from a transactional-type career, which regulators would do/value that sort of background? I suppose the SEC has Corporation Finance, but that seems more like general review of securities filings. I readily admit I don't know that much more about it. They also have a Trading and Markets Division, but I'm unclear on that.

[mw115]

There's not exactly a single entity that regulates mergers from a non-antitrust aspect.

My understanding is that the Fed would probably be more prestigious than SEC and you'd probably have the opportunity to work a lot more closely with banks specifically (which is very, very important for both cap markets & mergers). Also, for moving back in with a corp. finance background, my view is the Fed would value those skills most highly.

[Anonymous User]

Hey all, thanks in advance!

I want to do corporate work at a firm, dealing with either M&A or Securities, and I'll be at an NYC V5 this coming summer. Given that, I have a great opportunity to intern at one of a couple places next semester - either the SEC (Enforcement), the Federal Reserve, or a compliance-based group at KKR.

I'm leaning toward the SEC for now, but which might give me the most insight/experience relevant to my later-desired work?

And on a similar note, if I were to want to move into government from a transactional-type career, which regulators would do/value that sort of background? I suppose the SEC has Corporation Finance, but that seems more like general review of securities filings. I readily admit I don't know that much more about it. They also have a Trading and Markets Division, but I'm unclear on that.

Fed is probably considered to be the most "prestigious" regulator. As far as the SEC goes, Corp Fin and IM both have groups that reviews securities filings/ disclosures. Enforcement is primarily litigation. Almost every financial regulator has attorneys in every division/group/branch that focus more on rule writing, rule interpretation, no action and exemptive relief type of work that isn't transactional but isn't litigation either. Regulatory law seems to sit somewhere right in the middle. Outside of enforcement and securities filing focused practices, firms usually have small practice groups (banking regulatory, Broker dealer advisory, etc.) that are designed to mimic their regulatory counterparts. But those groups seem to be partner heavy.

[Anonymous User]

Definitely the Fed, since they are the primary regulator of the financial industry after Dodd-Frank. But if you are more interested in the capital markets, then the SEC would be a great opportunity (even in enforcement, you can probably ask to work on corp fin or trading and markets projects). If the opportunity at KKR is paid, you should probably do that though.

[downinDtown]

If you want to do transactional/corporate work at the firm, then do the SEC (but make sure you can intern in one of the transactional practices, not litigation/enforcement). It'll add the most value and give you insight into what is and isn't important in securities filings, which is something you'll likely work on quite a bit as a junior. You'll likely be reviewing/scrubbing prospectuses/filings, whereas in M&A you'll be doing more due diligence/review of ancillary documents.

If you want (or think you might want) to do financial/banking regulatory or policy work, read through Basel III, Volcker, Rule 23A/B, and the other alphabet soup of regulations and then come back and let me know if that doesn't change your mind. Stuff's a cluster

[Anonymous User]

Fed is probably considered to be the most "prestigious" regulator. As far as the SEC goes, Corp Fin and IM both have groups that reviews securities filings/ disclosures. Enforcement is primarily litigation. Almost every financial regulator has attorneys in every division/group/branch that focus more on rule writing, rule interpretation, no action and exemptive relief type of work that isn't transactional but isn't litigation either. Regulatory law seems to sit somewhere right in the middle. Outside of enforcement and securities filing focused practices, firms usually have small practice groups (banking regulatory, Broker dealer advisory, etc.) that are designed to mimic their regulatory counterparts. But those groups seem to be partner heavy.

That's really helpful, thank you. I'll do my best to keep my options open. Sadly, my firm only has a general Banking/Finance practice and then just Securities, and I'd be doing whatever trickled down to my subgroup within that (which seems to be client-based, to some extent, rather than a particular type of securities work).

Does desirability/application to fed gov work change, based on if you're doing issuer or underwriter-side securities work?

Would one type be more relevant than the other?

Definitely the Fed, since they are the primary regulator of the financial industry after Dodd-Frank. But if you are more interested in the capital markets, then the SEC would be a great opportunity (even in enforcement, you can probably ask to work on corp fin or trading and markets projects). If the opportunity at KKR is paid, you should probably do that though.

The KKR one isn't, but the reason the other two are higher up on my list for now's that the KKR one's compliance. Fed's definitely a great option and I'm lucky. Good to know.

If you want to do transactional/corporate work at the firm, then do the SEC (but make sure you can intern in one of the transactional practices, not litigation/enforcement). It'll add the most value and give you insight into what is and isn't important in securities filings, which is something you'll likely work on quite a bit as a junior. You'll likely be reviewing/scrubbing prospectuses/filings, whereas in M&A you'll be doing more due diligence/review of ancillary documents.

If you want (or think you might want) to do financial/banking regulatory or policy work, read through Basel III, Volcker, Rule 23A/B, and the other alphabet soup of regulations and then come back and let me know if that doesn't change your mind. Stuff's a cluster

This'd be in the New York office, so sadly the only available SEC Divisions are Enforcement and Compliance Inspections. That said, if I did this, I might be able to extern in DC next year, and maybe work in another Division at that time (whether it's Corp Fin or anything else).

I'm taking one class this year based on securitization and yeah, it's crazily convoluted. I don't dislike it but I don't know enough to make that hard choice haha. I'll keep this all in mind!