Media Mentions
2012
“Andrea Kramer: Promoting Gender Equality”
Chicago Lawyer, February 1, 2012
Andrea Kramer was profiled for her significant efforts to promote gender equality in the legal profession. Since joining McDermott as a partner, Ms. Kramer helped establish the Firm’s Diversity Committee and McDermott University mentoring program as well as the Women’s Leadership & Mentoring Alliance, and chairs the Chicago Foundation for Women. “I believe that women can help themselves, and I think men have a lot to learn as well about what they can do to do a better job of understanding the communication differences,” she stated. Jeffrey Stone called Ms. Kramer “a thought leader and innovator” in gender equality issues, while Carolyn Gleason said of Ms. Kramer, “I’ve been inspired as I’ve watched her.”
Carolyn B. Gleason, Andrea S. Kramer, Jeffrey E. Stone, International Tax, International Trade, Tax, White-Collar & Securities Defense
2011
“Taxwriters, Panelists Agree on Need to Reform Taxation of Financial Products”
Tax Notes Today, December 7, 2011
Andrea Kramer told a joint Congressional panel considering tax overhaul for financial products that “from an administrative and policy standpoint, … it would be very, very difficult to impose a mark-to-market system” for valuation of privately traded securities and similar products. She suggested instead that avoiding abuse and encouraging economic development can be better accomplished by “putting more transactions into the hedging and risk management bucket.”
Andrea S. Kramer, International Tax, Tax
“Congress Considers Tax Reform of Financial Products”
Accounting Today, December 7, 2011
Andrea Kramer asserted at a joint Congressional hearing that, although there is much focus on how derivative financial products may have “inappropriate or illegitimate uses to game the tax system,” derivatives are in fact “economically valuable financial products and are principally used for legitimate risk management and hedging purposes.”
Andrea S. Kramer, International Tax, Tax
“Tax Derivatives Gets Capitol Hill Airing”
Wall Street Journal, December 6, 2011
Andrea Kramer told a joint Congressional committee considering changes for taxing financial products that “whatever changes are made, there will be new opportunities” for tax avoidance, adding her view that “eighteen months would be the outer limit” before such avoidance strategies appeared.
Andrea S. Kramer, International Tax, Tax
“Strategies to Minimize Taxes Under Senate Scrutiny”
Investment News, December 6, 2011
Andrea Kramer advised a joint Senate-House hearing that, even if Congress imposed tighter tax rules for derivative financial products, it could take no more than 18 months for the creation of new products that skirt the goal of the rules. “Wherever there is an opportunity then there is going to be planning” to create such products, Ms. Kramer said.
Andrea S. Kramer, International Tax, Tax
“U.S. Studies Derivatives That ‘Game’ Tax Rules”
Bloomberg News, December 6, 2011
Andrea Kramer said at a joint Congressional hearing on curbing financial product tax abuse that using a mark-to-market asset valuation system to “actually accomplish the reforms we’re talking about” would pose administrative and policy difficulties for assets that aren’t publicly traded or for which the value can’t be easily determined.
Andrea S. Kramer, International Tax, Tax
“Hearing on Financial Products Taxation Announced”
BNA Daily Tax Report, December 1, 2011
Andrea Kramer was noted as one of the witnesses slated for a December 6 joint hearing of the Senate Finance and House Ways & Means Committees to consider tax reform and taxation of financial products.
Andrea S. Kramer, International Tax, Tax
“’Ugly Betty’ Star at CFW Luncheon”
Windy City Times, October 12, 2011
Andrea Kramer, who is Chair of the Chicago Foundation for Women (CFW), was noted as being the event co-chair for the CFW’s 26th Annual Luncheon on October 3.
Andrea S. Kramer, International Tax, Tax
“Papering Over the Clearing of Derivatives”
Money Management Executive, July 18, 2011
Andrea Kramer reminded fund managers that the central clearing of derivatives trades required by the Dodd-Frank Act will mean they must make such documentation decisions as “what type of category of firm they fit under, which contracts they will centrally clear and what new contracts they will enter into with executing parties and clearing brokers.” To do this, she added, “Some fund managers and dealers would prefer to negotiate additional clauses to their futures agreements while some would like to add to their ISDA agreements.”
“CFTC Whistleblower Rule Draws Scrutiny”
MarketWatch, July 15, 2011
Andrea Kramer pointed out that the Commodity Futures Trading Commission may not have enough funding to pursue whistleblower tips on commodity trades and swaps, as now authorized by the Dodd-Frank Act. Moreover, she added, there is confusion about “what are the swaps in the first place? Answers to questions like that will tell the market participants whether they are in Dodd-Frank [whistleblower provisions] or not.”
“Open Letter to Mayor Emmanuel on Maternity Leave”
Huffington Post, July 14, 2011
Andrea Kramer predicted that the city of Chicago’s plan to institute paid maternity leave for city employees “will open doors for women, ensuring that raising health families and building successful careers are no longer so hard to reconcile.” Ms. Kramer made the statement in her role as board chair of the Chicago Foundation for Women.
“Regulators May Not Have Authority to Delay Dodd-Frank, Warn Lawyers”
Risk Magazine, July 8, 2011
Andrea Kramer asserted that, although some say a CFTC and SEC extension to implement Dodd-Frank Act provisions may allow traders to argue that an unfavorable swaps deal should be canceled as illegal, “I really don’t see anything in the proposed extension that gives participants legal grounds to back out of otherwise binding contracts.” She added that she “can’t see courts saying contracts would be unenforceable” because of the extension.
“McDermott Lawyer Will Lead Foundation”
Chicago Daily Law Bulletin, June 30, 2011
Andrea Kramer commented on her selection as Chair of the Chicago Foundation for Women. “I care very much about gender diversity, about diversity in the [legal] profession," said Ms. Kramer. "I want to see more women advance in leadership and philanthropy, especially women from diverse backgrounds." Heading the Foundation (which she called “the leading funder of nonprofit programs that support women and girls in the Chicago area”) is one of Ms. Kramer’s many community leadership activities. “It energizes me, giving something back … I get back more than I give out.”
“CFTC Delays Implementation of Some Derivatives Rules”
The Deal Pipeline, June 14, 2011
Andrea Kramer said that a decision by the CFTC to resolve questions about the timing of new swaps regulations means that swaps users “are not going to be held to a ‘read our minds’ standard” by the regulatory agencies. Ms. Kramer added regarding the regulators that “the world is going to continue to spin until they get it right. They are not going to chase after” swaps dealers and recipients until the rulemaking process is complete.
“As Regulators Tinker with New Rules for Derivatives, a Deadline Looms”
Compliance Week, June 14, 2011
Andrea Kramer spoke extensively about the uncertainties facing derivatives traders as regulators try to formulate rules mandated by the Dodd-Frank Act. She said that many of her clients “are struggling with … trying to figure out how to get the contracts in place for doing cleared swaps, because once the new rules are put in place many contracts are going to need to be cleared on an exchange.” But, she added about exchange rules and margin requirements, “None of those have been set yet.”
“Implementation of Dodd-Frank – Preparing for the Changes Ahead”
Thomson Reuters Business Law Currents, May 26, 2011
Andrea Kramer, whose bylined article reflects her keynote address to a major traded derivatives operations conference, wrote that the more than 240 rulemakings mandated by the Dodd-Frank Act pose “a clear danger sign that we have asked too much of our regulators too soon.” As the SEC and CFTC implement these provisions, Ms. Kramer wrote, “the issue must be in ‘getting it right,’ not in getting it done by ‘such and such a date.’ … If our regulators are rushed, the likelihood of making our markets better goes down and the inevitability of really screwing them up goes up.”
“FTF Panel: Start Preparing Now for OTC Clearing”
Financial Technologies Forum, May 25, 2011
Andrea Kramer told a conference on exchange traded derivatives that for the Dodd-Frank Act to require the SEC and CFTC to develop a regulatory framework for OTC derivatives trading in a year amounted to saying, “Do for the OTC derivatives markets what the equities markets took 70 years to do. That’s clearly the most outrageous irony of Dodd-Frank. It gives new meaning to the word hubris.” Calling deadlines already missed “a danger signal,” Ms. Kramer urged market participants to comment as the rulemaking process continues. “You have to assume that Dodd-Frank will not take care of itself. We need to be part of the process,” she said.
“Practice Spotlight: Andrea S. Kramer”
Thomson Reuters “Business Law Currents,” April 19, 2011
Andrea Kramer outlined post-Dodd-Frank Act trends in the derivatives markets. She singled out “the different clearing systems that are currently being debated with the regulators [which] could give us very different tax results. [T]he tax trends we are seeing now are basically following the ways in which the markets are moving and how they are being regulated. That will shape how the tax rules ultimately apply.” In this and other areas, the “CFTC is moving faster than the speed of sound with proposed regulations and rules, while the SEC is moving with much more caution.” Ms. Kramer noted that most affected by Dodd-Frank will be transactions “that are customized, highly structured and that have a special business purpose.”
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products, Energy Advisory, Tax
“Crunch Time for U.S. Commodity Speculation Crack-Down”
Reuters, March 23, 2011
Andrea Kramer said of the new Commodity Futures Trading Commission (CFTC) proposal requiring companies and dealers making “bona fide hedge” trades to provide evidence they are not speculative that, “It’s going to be a compliance mess.”
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products
“The New Regulatory World in 2011”
Thomson Reuters Special Report, March 18, 2011
Andrea Kramer singled out clearing as a major cost issue in Dodd-Frank Act regulations on OTC derivative trading. “If you don’t have to clear your position … you don’t have to worry about the margin and capital requirements” which historically have not applied to hedge transactions, she said. Ms. Kramer warned that “it’s going to cost a lot of money to become a swap dealer or major swap participant” should clearing of hedge transactions be required. If hedge funds are put into these categories, she concluded, “We’re going to see a significant contraction in the leverage available” because the cost of trading will rise for the funds.
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products
“Northern Trust Helps Institutional Clients Navigate Dodd-Frank Act’s Impact on Derivatives”
Business Wire, February 25, 2011
Andrea Kramer participated in a webinar sponsored by Northern Trust for some 100 participants, and spoke on how the Dodd-Frank Act’s provision for central clearing of derivatives will affect such buy-side institutions as U.S. public and private pension funds and corporate treasury desks.
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products, Energy Advisory, Structured Finance and Derivatives
“Mini-Book Review: Energy and Environmental Project Finance Law and Taxation”
EBA Update, Winter 2011
Andrea Kramer is noted as co-editor and chapter co-author of this highly praised 948-page treatise. “Tax law is made not only understandable, but interesting,” the reviewer stated, citing this example from one of Ms. Kramer’s chapters: “Financial product tax rules … enacted in direct response to perceived taxpayer abuses … create ‘traps for the unwary’ because such tax provisions are often drafted broadly, sweeping in legitimate transactions.”
Andrea S. Kramer, Energy Advisory, Financial Products, Trading & Derivatives, Tax
“Aggressive Advice and Useful Warnings at Hedge Fund Meetings”
Tax Analysts, January 12, 2011
Andrea Kramer discussed the uncertainty that has arisen in the taxation of derivatives, because the Dodd-Frank Act has defined 21 types of swap contracts compared to the seven defined in Section 1256 of the Internal Revenue Code. These additional swaps may or may not become futures contracts when they are cleared on exchanges. Ms. Kramer noted that regulators and interested parties are having a vigorous debate in Washington about defining what kinds of operations can perform clearing.
Andrea S. Kramer, Energy Advisory, Energy Tax, Financial Products, Trading & Derivatives
2010
Excerpt from “Infrastructure in India: Building the Legal and Regulatory Framework”
Lex Witness, November 2010
Andrea Kramer told an interviewer that companies pursuing concession or license agreements with host governments should protect themselves by seeking waiver of sovereign immunity and economic stabilization provisions in case the host government’s laws change. Ms. Kramer said that lawyers negotiating such agreements must “understand the interplay between governing law, choice of law and dispute resolution provisions” in order to “assure their clients that all of the individual agreements that make up the complete set of project documents – as a whole – fit together correctly.”
Andrea S. Kramer, Government Strategies, International Arbitration
“Community Leader K. Sujata Named Chicago Foundation for Women President”
CFW.org, October 27, 2010
Andrea Kramer, who chaired the Foundation’s Search Committee, said that the candidate chosen “has the drive to lead our fundraising efforts and the depth of experience to help direct those funds where they're needed most to help grantees improve the lives of women and girls in our communities.”
Andrea S. Kramer, Energy Advisory, Tax
Andrea Kramer was quoted in Platts Commodity News (September 13) regarding the Dodd-Frank Act's impact on over-the-counter derivatives markets. Ms. Kramer predicted major impact from the forthcoming definition of major swap participants that are covered by the new rules and end users that are not. "We're going to see what the definitions look like and we might be surprised," she stated. "The differences between an end user and a major swap participant are breathtaking."
Andrea S. Kramer, Energy Advisory
Andrea Kramer was featured in an August 31 Chicago Daily Law Bulletin story about a new book that she has assembled and contributed to, which is the first text to summarize the legal and financial know-how to develop “green” energy sources. “This is really a book that is addressing the cutting edge of change,” Ms. Kramer said of Energy and Environmental Project Finance Law and Taxation. “It can be of interest to someone who just has a casual interest in how green and renewable markets work. It can also be a guide for people who want to actually put together these types of projects.” Saying that the renewable energy book tells “what are the risks; what are the projects you can use to hedge them; how you would hedge them,” Ms. Kramer added: “Nobody else had done it. That’s what prompted me to think this was worth a new book.”
Andrea S. Kramer, Energy Advisory, Global Renewable Energy, Emissions and New Products
Andrea Kramer was cited in a July 22 Risk.net article on the impact that the Dodd-Frank financial reform act will have on over-the-counter derivatives trading. Ms. Kramer stated that regulatory agencies like the Commodity Futures Trading Commission (CFTC) “won’t just implement the act, they will craft the new regulations – and with limited regulatory guidance.” One area where regulations are needed relates to “end users,” which as non-financial entities can elect not to clear swaps but must notify the CFTC how they will meet the financial obligations such swaps create.
Andrea S. Kramer, Energy Advisory, Structured Finance and Derivatives
Andrea Kramer was included in a May 10 Petroleum Review summary of presentations made during the 2010 International Petroleum Week conference. Ms. Kramer spoke to the conference regarding international contract dispute resolution strategies. She stated that such disputes can hinge on the differences between civil and common law systems, although one contract type is not inherently better, fairer or more predictable than another. Rather, Ms. Kramer said, contract terms, administration and regulation tend to differentiate contract effectiveness – particularly when business needs change daily, but contract terms change only with amendments.
Andrea S. Kramer, International, International Arbitration
Andrea Kramer’s recent ABA Section on Taxation presentation about pending changes for regulation of derivatives transactions was summarized in the February 1 issue of Tax Notes. Ms. Kramer noted that most financial, energy and electrical derivatives are now excluded from CFTC regulation. Legislation passed by the House of Representatives late in 2009 continued to exclude from regulation and exchange clearance those transactions that are intended to be physically settled. But Ms. Kramer said it is unclear whether this exclusion will cover electricity contracts for which physical delivery does not occur.
Andrea S. Kramer, Energy Advisory, Tax
2009
Andrea Kramer was quoted in a WomenLegal Magazine (June – August 2009) story that presented comments by participants in the publication’s 2009 forum discussion among gender diversity thought leaders. Ms. Kramer, chair of McDermott’s Gender Diversity Committee, urged women lawyers to be more forceful in communicating what they have achieved with their firms. She noted that as a Compensation Committee member, “I read several thousand self-evaluations. But it didn’t take me long to notice a pattern. After reading a handful of self-evaluations, I saw that too many women were reticent to claim credit for their accomplishments. Most men weren’t.”
2008
Andie Kramer was quoted in the November 24 issue of Business Week about how fund-of-funds managers are being forced to dump assets, putting further pressure on the hedge funds and the markets generally, since so many depended on borrowed money. The funds of funds were layering leverage upon leverage. They owned hedge funds already loaded up with debt, roughly $6 for each $1 of capital. When credit seized up, the process began to reverse. "Once things start to deliever, everything contracts," Ms. Kramer said.
Andrea S. Kramer, Hedge Funds, Markets Restructuring, Tax
Andrea Kramer was quoted September 26 on guardian.co.uk about how U.S. regulators are looking into credit derivatives as they investigate market manipulation, and some lawyers believe the government is looking at whether traders have used the products to help push banks closer to insolvency. "You can affect investors' perception of the company, and affect the company's credit-worthiness," Ms. Kramer said.
Andrea S. Kramer, Financial Products, Trading & Derivatives, Tax
2007
Andrea S. Kramer was featured in the June 2007 issue of Lawdragon magazine in the "Top 500 Leading Dealmakers" ranking. Lawdragon creates its guides to the best lawyers in the United States through a unique combination of online balloting and independent research.
Andrea Kramer was mentioned in the June issue of the Chicago Lawyer for receiving the first Founders Award from The Women's Treatment Center.
Andrea Kramer was named among in The National Law Journal 50 Most Influential Women Lawyers in America published on May 28.
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products, Tax
Andrea Kramer was quoted in the February issue of the Chicago Lawyer in an article concerning the challenges law firms face retaining women and minorities. "I've been practicing law for nearly 30 years, my law school class was the first class in which 30 percent were women. I always assumed I would see the same progression, and what we have found out 30 years later is that 20 percent of partners are women. If you divide out the firms like ours that have two-tier partners, the number of women capital partners is even less," Ms. Kramer said.
2006
Andrea Kramer was quoted in the July 3 issue of The National Law Journal about law firms' efforts to increase the number of female partners in accordance with the Chicago Bar Association's Alliance for Women committee. For instance, McDermott is making a stronger effort to give plum projects to a variety of its lawyers, including women and minorities, according to Ms. Kramer. "That's forcing our colleagues to understand that they can't just go to the guy that looks like them," Ms. Kramer said.
Andrea Kramer was quoted in the June 2006 issue of Global Finance about how the corporate use of derivatives is becoming increasingly commonplace, but while they are easier than ever to use, the risks still remain. Credit derivatives are currently favored because they provide a hedge in case one of your close business partners falls on bad times. "If your biggest client is IBM, and you're afraid IBM is going to slip on a banana peel, you might get coverage based on IBM's creditworthiness," Ms. Kramer said.
Andrea S. Kramer, Financial Products, Trading & Derivatives, Structured Finance and Derivatives, Tax
2004
Andrea Kramer was quoted in the May 2004 issue of Fidelity magazine in an article regarding who can benefit from the federal income tax rate of 15 percent for qualified dividends. She explained that "the logic behind all this is that there can only be one recipient of a qualified dividend." She further noted that "in the case of a short sale lending transaction, the recipient of the qualified dividend is the party that actually purchases the stock from the short seller. The purchaser is the only taxpayer who can qualify for the 15 percent tax rate."
2001
Helen Friedli and Andrea Kramer were mentioned in the annual diversity survey published in the July 2001 issue of Chicago Lawyer. Ms. Friedli, at the time a member of the Firm’s management committee and Ms. Kramer, member of the management committee and head of the Firm’s financial products practice group, were listed as women who serve in top leadership positions in the Firm as of January 1, 2001. McDermott was also noted for the most women partners (49).
Helen R. Friedli PC, Andrea S. Kramer
Andrea Kramer’s comments from an IRS Public Hearing on Proposed Regulations was published in Tax Notes Today on May 23. Ms. Kramer said that the proposed hedging regulations, which were the focus of the hearing, fail to follow the direction of Congress to broaden the standard for qualifying hedging transactions, and recommended to the IRS & Treasury Panel to replace the concept of risk reduction with the standard of risk management. She also proposed a "rule of application" to address risk management transactions entered into by dealers in commodities.
Andrea S. Kramer, Financial Products, Trading & Derivatives, Tax
Andrea Kramer was quoted in the lead paragraph of the March 2001 issue of Inc. Magazine in an article entitled, "Follow the Big Guys: The Sagging Euro Got You Down? Or Are You Profiting From It? It May be Time to Try Your Hand at Currency Hedging."
Andrea S. Kramer, Financial Products, Trading & Derivatives, Tax
