Posts Tagged ‘Andrew Cuomo’

New York Public Employees Game the Pension System with Excessive Overtime, Says AG

New York Public Employees Game the Pension System with Excessive Overtime, Says AG

Courtesy of Jr. Deputy Accountant 

Reuters:

Some New York public employees are spiking their pension benefits by working hundreds of hours of overtime as they near retirement, Attorney General Andrew Cuomo said on Wednesday.

For example, a police officer with a history of zero overtime worked more than 800 hours of overtime in his last years on the job, the Democratic gubernatorial candidate said in a report.

The pension benefits that state and local employees qualify for often are partly determined by how much they earn in the last few years at work.

This use of overtime, called pension padding, hurts New Yorkers as each year their taxes contribute $2.5 billion to the state’s Common Retirement fund, Cuomo said.

It appears as though everyone is doing it and what’s to stop them?

Cuomo calls the practice fraud though we’re sort of sketchy on that word being used in this sense since it’s allowed and wide-spread, fraud generally being the sort of thing that just a handful of unscrupulous individuals engage in driven by rationalization, opportunity or motive. Then again, I guess the rationalization is that these public employees have earned it, the opportunity is more than there since everyone is doing it and the motive is the same as always, more money. Greed is a powerful motivator and in an environment absent of control, it’s not hard to see how something like this could go down on a massive scale.

"You have some people who work no overtime throughout their career and then the last year or the last couple of years, all of a sudden, do hundreds of hours of overtime just for purposes of increasing the salary and increasing the pension. That is not an agreed to cost. That is not what was fair and right. That’s a fraud and that’s what we’re looking at," said Cuomo.

Them’s fightin words, Mr AG, hope you’re ready to get bit by the big bad public worker bee brigade. 


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Is That A Cop Investigating Big Banks?

Is That A Cop Investigating Big Banks?

Thinkstock Single Image Set

Courtesy of Karl Denninger at The Market Ticker 

If so, it’s about damn time…

May 13 (Bloomberg) — U.S. prosecutors and the Securities and Exchange Commission are cooperating in a preliminary criminal probe into whether banks misled investors about their participation in mortgage-bond deals, the Wall Street Journal said, citing a person familiar with the matter.

The list is a who’s who of the big banks.  JP Morgan, Deutsche Bank, UBS, Citigroup, Goldman, Morgan Stanley. 

All in all eight banks are being scrutinized by both the toothless SEC but more-importantly Andrew Cuomo, who wields a fairly nasty set of powers through NY’s Martin Act.

Cuomo is investigating whether Goldman, Morgan Stanley, UBS, Citigroup, Credit Suisse, Credit Agricole SA, Deutsche Bank and Bank of America Corp.’s Merrill Lynch misled rating companies to obtain higher ratings, the New York Times said. Cuomo issued subpoenas on Wednesday, the newspaper reported.

Hmmmm… now that’s a good sign. 

We know from the public data flow, including testimony before the Congress, that firms did use their knowledge of rating agency models to "tailor" submissions. Whether this rises to the level of intentional deception for the purpose of gaming the system remains to be determined, but that this sort of thing happened isn’t conjecture – it’s admitted fact.

"Changes to prevent it from happening again" are insufficient.  Those who were defrauded, if they indeed were, are entitled not only to recompense but to criminal sanction against wrong-doers as a means of dissuading firms and individuals from doing it again.

I’ll believe this is real when I see handcuffs come out. 


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Full Suit By Andrew Cuomo Against Ken Lewis And Joe Price

Full Suit By Andrew Cuomo Against Ken Lewis And Joe Price

andrew cuomo - from the business insiderCourtesy of Zero Hedge

Highlights from the suit:

By early December 2008, Bank of America’s top management, including its CEO Ken Lewis and CFO Joseph Price, had two choices: they could tell the Bank’s shareholders about the huge material losses at Merrill since the merger proxy was filed, or they could hide them. Bank management chose to hide the information. In particular, Bank management failed to disclose that by December 5, 2008, the day Bank of America shareholders voted to approve the merger with Merrill Lynch, Merrill had incurred actual pretax losses of more than $16 billion. Bank management also knew at this time that additional losses were forthcoming and that Merrill had become a shadow of the company Bank of America had described in its Proxy Statement and other public statements advocating the merger. The Bank’s management thus left the Bank’s shareholders in the dark about fundamental changes at Merrill that were obviously important to their voting decision. These disclosure failures violated New York’s Martin Act.

Having obtained shareholder approval for the deal, Lewis then misled federal regulators by telling them that because 50% of Merrill’s tangible equity had disappeared, the Bank could not complete the merger without an extraordinary taxpayer bailout. Lewis went onto say how the Bank needed to “fill the hole” left by the unprecedented losses, which contradicted his public statements to the effect that the Bank would not need additional capital. Remarkably, between the time that the shareholders had approved the deal and the time that Lewis sought a taxpayer bailout, Merrill’s actual losses had only increased another $1.4 billion. The Bank’s management has not and cannot explain why they did not disclose to the Bank’s shareholders losses so great that, absent a historic taxpayer bailout, they threatened the Bank’s very existence.

On November 13, when Price knew of at least approximately $5 billion in after tax losses, Bank of America’s General Counsel, Timothy Mayopoulos, and lawyers from its outside law firm, Wachtell, Lipton, Rosen & Katz, determined the Bank should disclose the losses. The lawyers discussed the date of the disclosure, the manner of the disclosure, who would draft the disclosure, and that Price would approach Merrill CEO John Thain about the disclosure. Shortly thereafter, however, the decision was reversed, Wachtell’s role was marginalized, and the Bank made its


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NY AG Cuomo Announces Fraud Charges Against Bank Of America For Merrill Lynch Merger

NY AG Cuomo Announces Fraud Charges Against Bank Of America For Merrill Lynch Merger (BAC)

Courtesy of Joe Weisenthal and Lawrence Delevingne at Clusterstock

Andrew CuomoToday, Andrew Cuomo announced fraud charges against Bank of America and top executives over the Merrill Lynch merger debacle.

The charges are civil, but Cuomo says there are pending criminal investigations.

Here’s the full release:

ATTORNEY GENERAL CUOMO FILES FRAUD CHARGES AGAINST BANK OF AMERICA, FORMER CEO KENNETH LEWIS, AND FORMER CFO JOSEPH PRICE

Suit Alleges Bank of America’s Top Management Hid Skyrocketing Losses at Merrill Lynch

Bank of America Management Manipulated Federal Government into Granting Massive Taxpayer Bailout

NEW YORK, NY (February 4, 2010) – Attorney General Andrew M. Cuomo,
joined by Special Inspector General for the Troubled Asset Relief
Program Neil Barofsky, today announced a lawsuit against Bank of
America, its former CEO Kenneth D. Lewis, and its former CFO Joseph L.
Price for duping shareholders and the federal government in order to
complete a merger with Merrill Lynch.  According to the lawsuit, Bank of
America’s management intentionally failed to disclose massive losses
at Merrill so that shareholders would vote to approve the merger.  Once
the deal was approved, Bank of America’s management manipulated the
federal government into saving the deal with billions in taxpayer funds
by falsely claiming that they would back out of the deal without bailout
funds.

“This merger is a classic example of how the actions of our
nation’s largest financial institutions led to the near-collapse of
our financial system,” said Attorney General Cuomo.  “Bank of
America, through its top management, engaged in a concerted effort to
deceive shareholders and American taxpayers at large.  This was an
arrogant scheme hatched by the bank’s top executives who believed they
could play by their own set of rules.  In the end, they committed an
enormous fraud and American taxpayers ended up paying billions for Bank
of America’s misdeeds.”

“The events surrounding the Bank of America/Merrill Lynch merger and
the United States Government’s investment in Bank of America through
the Troubled Asset Relief Program are an important part of the history
of the financial crisis,” said Special Inspector General Neil
Barofsky.  “Attorney General Cuomo and his staff, working hand…
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Amgen vs. Cuomo

Amgen: Cuomo’s Full Of It (AMGN)

pills drugs perscription healthcare health doctors sick medicine - tbiCourtesy of Lawrence Delevingne at Clusterstock

Amgen has responded to the charges of corruption and fraud related to its big anemia drug, Aranesp, made by New York Attorney General Andrew Cuomo today along with 14 other states.

Amgen spokesman David Polk told us "We believe that the allegations are without merit, and we look forward to the opportunity to examine these matters with the states before the Court."

Polk adds: "Because this lawsuit is now in litigation, we are limited in our remarks," and that "Amgen has a solid compliance program and Code of Conduct called “Do The Right Thing,” and we expect that all of our employees follow it at all times."

AMGN was down 0.56  today, or -1.03%.

See also Lawrence Delevingne’s earlier entry:

Amgen Down As Cuomo Alleges Massive Corruption, Kickbacks, And Fraud (AMGN)

Breaking from the New York Attorney General’s Office:

CuomoNEW YORK, NY (October 30, 2009) – Attorney General Andrew M. Cuomo today announced that New York and 14 other states are filing a lawsuit against Biotech giant Amgen following an investigation spearheaded by
his office into a nationwide kickback scheme to boost drug sales.

In a lawsuit filed today in federal court the states charge drug manufacturer Amgen, International Nephrology Network (INN), a specialty group purchasing organization, and ASD Healthcare, a wholesaler, with offering kickbacks to medical providers to increase sales of Amgen’s anemia drug, Aranesp.

“Drugs should be prescribed to patients on the basis of need, effectiveness, and safety, not on a corporate giant’s promise of an all-expense paid vacation,” said Attorney General Cuomo. “In an egregious violation of the law, Amgen allegedly bribed medical providers and left taxpayers footing the bill for free drug samples. My office’s Medicaid Fraud Control Unit will continue to work with our partners in other states to uncover these kinds of abuses.”

According to the multi-state complaint, the companies would encourage medical providers to bill third party payers such as Medicaid for free Aranesp that were provided at no cost. Amgen is further alleged to have conspired with INN and ASD Healthcare to offer illegal kickbacks to medical providers, such as sham consultancy agreements, weekend retreats, or other services to induce them to purchase and prescribe Aranesp with the intention and effect of increasing sales of Aranesp and converting new providers from competitor drugs to Aranesp.

As a result…
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All The Juicy Bank Bonus Details Compliments Of Cuomo

All The Juicy Bank Bonus Details Compliments Of Cuomo

Courtesy of Tyler Durden

With a title like "The ‘Heads I win, Tails you lose’ bank bonus culture", what’s there not to like about Cuomo’s latest. Also, sheds some light on why perpetuating a grossly inflated Ponzi market is where it’s at come December.

In summary, number of employees making over $1 million:

  • Bank of America: 172
  • BoNY: 74
  • Citi: 738
  • Goldman: 953
  • JP Morgan: 1,626
  • Merrill: 696
  • Morgan Stanley: 428
  • State Street: 44
  • Wells Fargo: 62

bonuses for financial industry employees 

Bonus Report

 

Attachment Size
Bonuses.jpg 110.49 KB

 


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Zero Hedge

For The First Time Since The Crisis, Companies Spent More On Buybacks And Dividends Than They Earned...

Courtesy of ZeroHedge View original post here.

It will hardly come as a surprise to many, but according to the latest cash flow analysis from Goldman Sachs, 2018 was a record year for S&P 500 cash spending: not only did aggregate spending on capex, R&D, cash acquisitions, dividends, and share repurchases rose by 25% to $2.8 trillion, "the fastest year/year growth in 30 years"...

...



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Phil's Favorites

Fed's Balance Sheet Spikes by $253 Billion, Now Topping $4 Trillion

Courtesy of Pam Martens

By Pam Martens and Russ Martens: October 18, 2019 ~

Shhh! Don’t tell Congress that the Federal Reserve is back to electronically creating money out of thin air to throw at a liquidity problem (of an, as yet, undetermined origin) on Wall Street. And be sure not to mention that the Fed’s balance sheet has shot up in a period of just 42 days by $253 billion. And, of course, don’t remind Congress that before the last Wall Street crisis was over the Fed had secretly, with no oversight from Congress, piled up ...



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Insider Scoop

48 Biggest Movers From Yesterday

Courtesy of Benzinga

Gainers
  • Hepion Pharmaceuticals, Inc. (NASDAQ: HEPA) shares climbed 43.2% to close at $3.58 on Thursday after the company announced the publication of a research article, "A Pan-Cyclophilin Inhibitor, CRV431, Decreases Fibrosis and Tumor Development in Chronic Liver Disease Models," in the peer-reviewed Journal of Pharmacology and Experimental Therapeutics.
  • Synthesis Energy Systems, Inc. (NASDAQ: SES) rose 26.9% to close at $9.20 after surging 12.24% on Wednesday.
  • Assembly Biosciences, Inc...


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Kimble Charting Solutions

Bank Index Breakout? Stock Market Bulls Sure Hope So

Courtesy of Chris Kimble

One of the most important sectors of the stock market is the banking industry and bank stocks.

When the banks are healthy, the economy is likely doing well. And when bank stocks are participating in a market rally, then it bodes well for the broader stock market.

In today’s chart, we look at the Bank Index (BKX).

As you can see, the banks have been in a falling channel for the past 20 months. As well, the banks have been lagging the broader market during this time as well – see the Ratio in the bottom half of the chart above.

That said, th...



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The Technical Traders

Currencies Show A Shift to Safety And Maturity - What Does It Mean?

Courtesy of Technical Traders

Recent rotation in multiple foreign currencies hints at the fact that a new stage of the “Capital Shift” process is taking place and that skilled technical investors need to pay very close attention to how these currencies continue to react over the next 3 to 6+ months.  In the recent past, most of the world’s foreign currencies were declining in value while the US Dollar continued to strengthen.  In fact, we authored many research articles about these trends and how weakness in foreign currencies will drive new foreign investment into the US stock markets for two simple reasons; strength and security. 

Now that a few of the world’s most ...



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Chart School

Review of Andrew CardWell RSI with Wyckoff price waves

Courtesy of Read the Ticker

RSI measures relative strength of price action of a set period versus prior set periods. It helps review the price swings or waves, the power of each price thrust into new ground, or lack of it. Price thrust like many things relies on energy, and energy is not a constant, it has a birth, a life and a death and relative strength helps us see that cycle. 

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Digital Currencies

Zuck Delays Libra Launch Date Due To Issues "Sensitive To Society"

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. 

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” he said. “But ...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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