Citigroup Latest Target for Madoff Trustee

March 3, 2011

First it was the New York Mets and J.P. Morgan, now Citi is the Madoff’s trustee’s latest target.  According to Bloomberg: “Citi knew, and was on notice of, irregularities and problems concerning the trades reported by BLMIS, and strategically chose to ignore these concerns in order to continue to enrich themselves,” Picard said in the […]

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Is Apple Still Committing Securities Fraud?

March 2, 2011

Earlier, we posted about how Apple’s hiding Steve Jobs’ medical condition may be securities fraud.  Some shareholders had the same thinking, but decided not to test their theory in court.  Instead, the Central Laborers’ pension fund decided to submit a “shareholder proposal” that shareholders vote to require the Apple board to “adopt and disclose” a […]

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Companies Risk Gurus Are Headed Towards Different Pay Structures

March 1, 2011

Chief Risk Officers at investment banks have a tough job.  They are often hated (or at least constantly hassled) by the bank’s most profitable traders and salespeople because they scrutinize trades and transactions from a risk perspective.  Traders care, but often ignore risk, and salespeople are looking to increase commissions, which can be large on […]

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Why is a Lawsuit Filed for Every Deal: J. Crew Buyout Edition

February 28, 2011

Here and here, I’ve discussed why shareholders file lawsuits to challenge every deal.  The J. Crew buyout is a case where the lawsuit may help increased the buyer’s out’s payment to shareholders.  The lawsuit, however, is much more likely to succeed when, like in the J. Crew buyout, it is paired with an Institutional Shareholder Services recommendation that […]

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Airgas/Air Products Views

February 25, 2011

Here is a compilation of views on the Airgas/Air Products case.  Excellent in depth analysis, I especially like the Bebchuk vs. Lipton and the Board’s decision to “Just Say No.”

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What is a “Poison Pill”?

February 24, 2011

As promised, here is a post about what is referred to as a “poison pill.”  Takeover jargon is filled with fun terms like “poison pill” and “white knight” and “shark repellent.”   These terms are so colorful mostly because they describe boring contractual provisions and esoteric corporate governance concepts.  A “poison pill” is formally known as […]

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Did You Research Your Stockbroker?

February 23, 2011

I’ve posted about stockbroker fiduciary obligations,  what about brokers’ professional and ethical obligations?  Here is good a NY Times Dealbook article about how Wall Street drags its feet in reporting broker misconduct.  In fact: But Finra depends on Wall Street to update the records — and dozens of new cases show that the information is […]

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The SEC is Losing the Battle for Regulation

February 22, 2011

The Securities and Exchange Commission and Commodity Futures Trading Commissions are charged with policing financial matters from Wall Street to Main Street.  They are often blamed not discovering mismanagement and fraud quickly enough and were more recently embarrassed during the country’s financial crisis and even more so with the discovery that Bernie Madoff was running a gigantic […]

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Hedge Funds Scrutinized

February 21, 2011

In an earlier post, I described, generally, what a hedge fund is.  In that post, I mentioned that a hedge fund’s biggest worry is that large numbers of investors will want to redeem their interest in the fund, an event that can snowball into a fund’s demise.   The NY Times Dealbook just published an […]

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Sanofi-Genzyme: $125 Million in Investment Bankers’ Fees

February 20, 2011

I’ve written a little about the Sanofi-Genzyme deal.  And, recently, had a post about investment bankers’ fees.   Those posts have remarkable synergy, considering Sanofi and Genzyme are paying a whopping $125,000,000 to their bankers.

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