Posts Tagged ‘shareholders’

Goldman Sachs Settlement with SEC Ignores Company’s Duty to Provide Timely Disclosures to Shareholders about Investigation Leading up to Litigation

Sam Antar makes a good point here.  Looking out for shareholders was not the objective of the lawsuit brought by the SEC against Goldman Sachs. Whether it would have, should have, or could have been considered is another matter, and apparently not going to be addressed.  What we have here (and seemingly everywhere within our financial system) is not a real operation of law, but more of a political sideshow.  - Ilene 

Goldman Sachs Settlement with SEC Ignores Company’s Duty to Provide Timely Disclosures to Shareholders about Investigation Leading up to Litigation

Courtesy of Sam Antar of White Collar Fraud 

The Securities and Exchange Commission’s settlement of a lawsuit against Goldman Sachs (NYSE: GS) over a certain subprime mortgage product sold to investors misses a key issue concerning the company’s duty to provide timely and transparent disclosures to its own shareholders about government subpoenas, investigations, and pending enforcement actions against the firm. In this particular case, Goldman did not make timely disclosures about the regulator’s investigation and pending lawsuit against the firm, right under the SEC investigator’s noses.

Goldman Sachs chooses to keep shareholders in the dark about SEC investigation and pending enforcement action

During the summer of 2008, the SEC started investigating Goldman’s marketing of a certain subprime mortgage product, known as ABACUS CDO, to investors who lost over $1 billion from that transaction.
At that time, Goldman Sachs knew that the SEC was investigating its failure to disclose material information to investors in violation of SEC Rule 10b-5 in connection with that transaction. However, Goldman Sachs did not disclose the SEC’s investigation in its financial reports.

In July 2009, the SEC sent Goldman Sachs a Wells notice informing Goldman of its intention to file a lawsuit against the company. Still, Goldman Sachs chose not to disclose the SEC’s pending enforcement action in its financial reports.

On Friday, April 16, 2010, the SEC filed a surprise lawsuit against Goldman Sachs and Executive Director Fabrice Tourre alleging securities fraud in connected with the company’s marketing of the ABACUS CDO to investors. That day, Goldman Sachs shares plummeted from $183.31 per share to $160.30 per share or about 13%, wiping out about $12 billion of shareholder wealth.

Clearly, investors deemed the surprise news of the SEC complaint against the company as material information, unlike the management team running Goldman Sachs.

Goldman Sachs settles SEC charges

Yesterday, Goldman Sachs settled SEC charges…
continue reading


Tags: , , , , ,




Greed’s Not Good For Shareholders

Greed’s Not Good For Shareholders

greedCourtesy of Tim at The Psy-Fi Blog 

Don’t Aim to Maximise Shareholder Value

When we look at the genuinely successful business people of our time, that happy band of folks who’ve created true shareholder value, enriching themselves and their followers to an astonishing degree, we find an extraordinary thing. The vast majority of these people are not particularly interested in money and their companies are generally not dedicated to some New Age declaration of shareholder value maximisation.

Greed is not a quality that seems to drive the world’s greatest creators of shareholder value and creating shareholder value is not the aim of the companies that are best at it. In fact we can pretty much guarantee the alternative: wherever you find over-rewarded executives presiding over companies whose main aim is to increase their market capitalisation we should pick up our skirts and get the hell out of it. Corporate greed is bad for ordinary shareholders.

Buffett’s Army

If you read Warren Buffett’s shareholder letters, for instance, you can’t help but notice that the people whose companies he takes over all, by and large, continue to work for him despite being made rich beyond the dreams of our avarice. They tap-dance to the workplace everyday and lead their companies through a set of values far removed from the value enhancing conceits of management consultants.

What seems to set aside great business people and their businesses from the pond life that mainly occupies executive positions is that they focus on things other than making money. These generally involve doing stuff that people actually want to pay good cash for, rather than an obsession with growth. Indeed, the last thing we should want is running our companies is people who are greedy for money, since the opportunities for unscrupulous executives to cheat us shareholders are huge.

Welch on Shareholder Value

The dangers of the concept of shareholder value are outlined by Jacques Reland who quotes Jack Welch with approval:

“On the face of it Shareholder Value is the dumbest idea in the world. Shareholder Value is a result, not a strategy. Your main constituencies are your employees, your customers and your products”

Welch, of course, was the man behind the elevation of shareholder value to cult status in his time as CEO of General Electric, so this looks like…
continue reading


Tags: , , , , , , ,




10 Things You Need To Know That Are Going On This Weekend

SPECIAL EDITION: 10 Things You Need To Know That Are Going On This Weekend

Courtesy of Joe Weisenthal, at Clusterstock 

It’s a Saturday, but it certainly doesn’t feel like it, because there’s a heck of a lot going on. 

Here’s what you need to be paying attention to this May Day.

  • Greece/IMF/EU talks continue. According to Greek government officials, some kind of announcement may be made today. The market is hoping to hear something that’s orders of magnitude stronger than any bailout announcement we’ve gotten so far, or otherwise the feeling will be that it can and will fall through again.
  • Of course, there are fresh violent, anti-austerity protests going on today in Athens. The fact that it’s May Day, a day for celebrating anti-capitalism only adds to the tension.
  • New reports suggest the criminal probe into Goldman Sachs is not just a perfunctory follow-on to the SEC charges, but rather a truly separate thing that’s wider than Abacus, and that started before the SEC’s investigation. HUGE.
  • With just five days before the election, UK’s The Guardian has endorsed the Liberal Democrats, the country’s biggest third party. Its leader, Nick Clegg, has surged thanks to a string of strong debate performances, Gordon Brown’s disastrous campaigning, and a lingering sense of unease with the conservatives.


    continue reading


    Tags: , , , , , , , , , , , , , , ,




     
     
     

    Zero Hedge

    Hundreds Of Colleges Form "Bias Response Teams" To Combat "Hate Speech" Like "Build The Wall"

    Courtesy of ZeroHedge. View original post here.

    Over the past year, an organization called the Foundation for Individual Rights in Education (FIRE) has been surveying college campuses around the country to assess how the liberal bastions of safe spaces handle reports of "hate speech" (a.k.a. "any opinion, or fact for that matter, that runs contrary to the widely accepted views of leftist professors and administrators").  Apparently, and to our great shock no less, hundreds of college campuses all around the country have established so-called "Bias Response Teams" tas...



    more from Tyler

    Phil's Favorites

    Want a stronger economy? Give immigrants a warm welcome

     

    Want a stronger economy? Give immigrants a warm welcome

    Courtesy of Kevin Shih, Rensselaer Polytechnic Institute

    ?Immigrants have long been a scapegoat when economies are sputtering, jobs are being lost or security is a concern.

    President Donald Trump’s planned wall along the Mexican border, for example, is premised on the notion that immigrants are pouring across the border (they’re not), ta...



    more from Ilene

    Market News

    News You Can Use From Phil's Stock World

     

    Financial Markets and Economy

    Fed may raise interest rates ‘fairly soon’ thanks to economy’s continued growth (The Washington Post)

    The Federal Reserve said the economy’s continued growth might persuade it to raise its benchmark interest rate “fairly soon,” according to minutes from its policy meeting released Wednesday, even as it acknowledged that the ambitious policies proposed by the Trump administration could have unforeseen effects on the U.S. economy.

    The Dow Is More than 2000 P...



    more from Paul

    ValueWalk

    Undervalued Hawaiian Holdings Well Positioned For Further Growth

    By The Acquirer's Multiple. Originally published at ValueWalk.

    One of the cheapest stocks in our all All Investable – Stock Screener and the cheapest airline stock is Hawaiian Holdings, Inc. (NASDAQ:HA).

    Hawaiian Holdings, Inc. (Hawaiian) is the parent company for its subsidiary, Hawaiian Airlines, Inc.

    Hawaiian Airlines is now in its 88th year of continuous service, Hawaiian is Hawai’i’s biggest and longest-serving airline, as well as the largest provider of passenger air service from its primary visitor markets on the U.S. Mainland. Hawaiian offers non-stop service to Hawai’i from more U.S. gateway cities (11) than any other airline, along with service from Japan, South Korea, China, Australia, New Zealand, American Samoa and Tahiti. Hawaii...



    more from ValueWalk

    Chart School

    Market Pause

    Courtesy of Declan.

    Nothing really to add to yesterday. Markets took minor hits, but there was little intraday spread. The biggest spread was in the Russell 2000 which was underperforming heading into today's session. It reversed most of yesterday's gains, but it has some way to go before it begins challenging the breakout


    The New Lows and Highs is in a secular bullish pattern, and it will take continued pressure in spike lows to generate a sustained sell off - none of which is happening here.

    ...

    more from Chart School

    Kimble Charting Solutions

    Quiz; What would you do with this opportunity?

    Courtesy of Chris Kimble.

    Below looks at an asset that has had a rough couple of years. The Power of the Pattern feels a nice risk/reward pattern is in play.

    CLICK ON CHART TO ENLARGE

    What would you do with this pattern? Long, Short or Avoid at (1).

    We would like to hear how you feel this asset should be traded at (1). Please send an email to ...



    more from Kimble C.S.

    Digital Currencies

    It's Time To Beat Up On Credit Suisse and Their Woefully Misinformed Bitcoin Advice

    Courtesy of Reggie Middleton at Zero Hedge

    Credit Suisse has been posting cryptocurrency advisories over the last few weeks. They are quite one-sided, although couched in the appearance of objectivity. To explain why it's couched in the appearance of objectivity, and not actually objective, let me give you some background. 

    The Obama administration enacted a law known as the Fiduciary Rule, as per Investopedia

    The Department of Labor’s definition of a fiduciary demands that advisors act in the best interests of their clients, and to put their clients' interests above their own. It leaves no room for advisors to conce...



    more from Bitcoin

    Members' Corner

    President Trump's Analyst?

    Courtesy of Nattering Naybob.

    Once again, not to be mistaken for Tuesday's With Morrie, it's time for Tuesdays With Trump...

     


    Summary

    Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:
    • Macro Demographic Impact; Fake News; The President's Analyst
    • Pudzer Pulls Out; Putin Depends On; Operational Vacuum; C...


    more from Our Members

    OpTrader

    Swing trading portfolio - week of February 20th, 2017

    Reminder: OpTrader is available to chat with Members, comments are found below each post.

     

    This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

    We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

    Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

    To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



    more from OpTrader

    Mapping The Market

    NSA May Be Withholding Intel from President Trump

    By Jean Luc

    These GOP guys were so worried about Hillary's email server and now we find out that we had something close to a Russian mole in the White House. In the meantime, Trump keeps on using his unsecured phone, had high level conversation in his resort in front of dinner guests! It's getting so bad that rumors are now circulating that the NSA is not sharing information with the WH:

    NSA May Be Withholding Intel from President Trump

    By 

    ….Our spies have had enough of these shady Russian connections—and they are starting to push back….In light of this, and out of worries about the White House’s ability to keep secrets, some of our spy agencies have begun withholding intelligence fro...



    more from M.T.M.

    Promotions

    Phil's Stock World's Las Vegas Conference!

    Learn option strategies and how to be the house and not the gambler. That's especially apropos since we'll be in Vegas....

    Join us for the Phil's Stock World's Conference in Las Vegas!

    Date:  Sunday, Feb 12, 2017 and Monday Feb 13, 2017            

    Beginning Time:  9:30 to 10:00 am Sunday morning

    Location: Caesars Palace in Las Vegas

    Notes

    Caesars has offered us rooms for $189 on Saturday night and $129 for Sunday night but rooms are limited at that price.

    So, if you are planning on being in Vegas (Highly Recommended!), please sign up as soon as possible by sending...



    more from Promotions

    Biotech

    The Medicines Company: Insider Buying

    Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

    I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

     

     

     

    Insider transaction table and buying vs. selling graphic above from insidercow.com.

    Chart below from Yahoo.com

    ...

    more from Biotech

    All About Trends

    Mid-Day Update

    Reminder: Harlan is available to chat with Members, comments are found below each post.

    Click here for the full report.




    To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

    more from David



    FeedTheBull - Top Stock market and Finance Sites



    About Phil:

    Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

    Learn more About Phil >>


    As Seen On:




    About Ilene:

    Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

    Market Shadows >>