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: , , , , , , , , , , , , , , ,




     
     
     

    ValueWalk

    Investors urge pharmas to develop treatments for COVID-19

    By Jacob Wolinsky. Originally published at ValueWalk.

    Investors urge pharma companies to work collaboratively on developing treatments for COVID-19

    Global pandemic calls for urgent and collective action to heal the sick and to prevent further contagion.

    Q1 2020 hedge fund letters, conferences and more

    NEW YORK, NY, TUESDAY, APRIL 7TH, 2020 - Investor members of the Interfaith Center on Corporate Responsibility have sent ...



    more from ValueWalk

    Phil's Favorites

    The Mood of Traders Darkens on Wall Street

    Courtesy of Pam Martens

    New York Stock Exchange Shutters Its Trading Floor on March 23, 2020 as Two Employees Test Positive for Coronavirus

    By Pam Martens and Russ Martens: April 7, 2020 ~

    It’s become your life or your trading bonus at some Wall Street firms.

    On November 10 of last year, Lesley Stahl of the CBS investigative news program, 60 Minutes, interviewed Jamie Dimon, the Chairman and CEO of JPMorgan Chase. As part of the interview, Dimon strolled Stahl around one of his trading floors...



    more from Ilene

    Zero Hedge

    Did Capital One Run Into A Commodity Prepay Wall?

    ourtesy of ZeroHedge View original post here.

    Submitted by Jacques Simon,

    In our last post we touted a too-big too fail return in the commodity-sector (a name nobody dare to pronounced. Today prices are down but market volatility is up (VaR is up, prices are down). Capital one, a FDIC-insured bank is allowed to ...



    more from Tyler

    Kimble Charting Solutions

    DAX Index Hits Two 18-Year Support Lines, Creates Large Bullish Reversal

    Courtesy of Chris Kimble

    Has the DAX index from Germany experience a large decline of late? Yes, it has!

    Has the decline broken long-term rising support lines? Not so far!

    This chart looks at the DAX index on a monthly basis over the past 25-years. Over the past 6-years, it has traded sideways inside of the blue rectangle at (1).

    The decline this year saw the DAX hit two 18-year rising support lines at (2) last month, where a large bullish reversal took place.

    Until broken, important support remains in play at (2), which is bullish for this key index....



    more from Kimble C.S.

    Biotech/COVID-19

    Here's how scientists are tracking the genetic evolution of COVID-19

     

    Here's how scientists are tracking the genetic evolution of COVID-19

    Why do scientists care about mutations on the coronavirus? Alexandr Gnezdilov Light Painting

    Niema Moshiri, University of California San Diego

    When you hear the term “evolutionary tree,” you may think of Charles Darwin and the study of the relationships between different species over the span of millions of years.

    While the concept of an “evolutionary tree” originated in Darwin’s “...



    more from Biotech/COVID-19

    Chart School

    The Big Short movie guides us to what is next for the stock market

    Courtesy of Read the Ticker

    There is nothing new in WallStreet, it is only the players that change. Sometimes a market player or an event gets ahead of the crowd and WallStreet has to play catch up.

    Previous Post Dow 2020 Crash Watch Dow, Three strikes and your out!

    It is important to understand major WallStreet players do not want to miss out on a money making moves.  







    ...

    more from Chart School

    Insider Scoop

    Economic Data Scheduled For Friday

    Courtesy of Benzinga

    • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
    • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
    • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
    • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
    ...

    http://www.insidercow.com/ more from Insider

    The Technical Traders

    Founder of TradersWorld Magazine Issued Special Report for Free

    Courtesy of Technical Traders

    Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

    What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

    There is only one article in this special supplement, click on the image or link below to download and read it today!

    ...

    more from Tech. Traders

    Members' Corner

    10 ways to spot online misinformation

     

    10 ways to spot online misinformation

    When you share information online, do it responsibly. Sitthiphong/Getty Images

    Courtesy of H. Colleen Sinclair, Mississippi State University

    Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

    Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



    more from Our Members

    Digital Currencies

    While coronavirus rages, bitcoin has made a leap towards the mainstream

     

    While coronavirus rages, bitcoin has made a leap towards the mainstream

    Get used to it. Anastasiia Bakai

    Courtesy of Iwa Salami, University of East London

    Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



    more from Bitcoin

    Promotions

    Free, Live Webinar on Stocks, Options and Trading Strategies

    TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

    Feb. 26, 1pm EST

    Click HERE to join the PSW weekly webinar at 1 pm EST.

    Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

    This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

    Mike will show off the TradeExchange's new platform which you can try for free.  

    ...

    more from Promotions

    Lee's Free Thinking

    Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

     

    Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

    Courtesy of  

    The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

    Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

    Lee,

    The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



    more from Lee

    Mapping The Market

    How IPOs Are Priced

    Via Jean Luc 

    Funny but probably true:

    ...

    more from M.T.M.





    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. Contact Ilene to learn about our affiliate and content sharing programs.