Continue reading AIG Financial Honcho to Dodge Indictment

AIG Financial Honcho to Dodge Indictment originally appeared on BloggingStocks on Tue, 06 Apr 2010 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Delay in UBS trial sparks settlement talks

Delay in UBS trial sparks settlement talks originally appeared on BloggingStocks on Mon, 13 Jul 2009 09:30:00 EST. Please see our terms for use of feeds.

Reportedly, Swiss bank UBS (NYSE: UBS) "systemically and deliberately" violated U.S. law by dispatching private bankers in America to recruit citizens interested in evading taxes.

UBS is now being forced by the Justice Department to reveal the identities of the 52,000 clients. This filing asks that the U.S. District Judge (Alan S. Gold) hold UBS accountable for conducting years of illegal business in the U.S. This business reportedly earned UBS more than $100 million in fees, while costing the U.S. "hundreds of millions" of dollars in unpaid taxes.

Continue reading Something's fishy at UBS

Something's fishy at UBS originally appeared on BloggingStocks on Wed, 01 Jul 2009 08:40:00 EST. Please see our terms for use of feeds.

Continental Airlines (NYSE: CAL) is seeking immunity from antitrust laws to work more closely with United Airlines (NASDAQ: UAUA) and others on international routes. And, since airlines operate in a state of seemingly perpetual turmoil, what's the harm? According to the Justice Department: plenty.

The airline sought broad immunity as part of an effort to join Star Alliance, which includes US Airways, Lufthansa (OTC: DLAKY), and Air Canada -- along with United. Continental believes that it needs to join Star Alliance in order to remain competitive, especially with airlines that have this type of immunity already.

Continue reading Justice Department pushes back on Continental immunity request

Justice Department pushes back on Continental immunity request originally appeared on BloggingStocks on Tue, 30 Jun 2009 08:00:00 EST. Please see our terms for use of feeds.

Since The Department of Justice appears ready to challenge a deal for Google (NASDAQ: GOOG) to sell search ads for rival Yahoo! (NASDAQ: YHOO), the two companies may quit while they are ahead. Or behind, depending on who is looking. Regulators are worried that the marriage would create a sort of monopoly on search ads because the two companies have about 85% of that market between them.

If the planned joint initiative fails, it hurts Yahoo! much more than Google. While the larger company would have made some money on sales commissions in the future, Yahoo! needs that revenue to help justify why it should remain independent. Google is also concerned that Justice might consider it a monopoly on its own since it holds a market share in search of about 65%. According to The Wall Street Journal, "By dropping out, Google would likely be seeking to avoid a legal battle that would spotlight its market power."

Observers believe that if Yahoo! cannot set up a Google deal, it is more likely to arrange a marriage with Microsoft's (NASDAQ: MSFT) internet unit or AOL so that it can gain more scale in the online ad market.

Yahoo! also has the very real option of going it alone. That would not be good for investors who put their money in at over $30 a share when Microsoft made a takeover bid, but it could be very good for shareholders who bought in around the current price of $13, making Yahoo!'s market cap only $18 billion. The company has valuable assets including Yahoo! Japan and China e-commerce company Alibaba. Yahoo! also has $3 billion in cash and will probably have an operating profit of well over $500 million this year. It is the largest internet display advertising firm in the U.S.

Yahoo! may simply be best off going its own way. It might surprise investors by doing fairly well.

Douglas A. McIntyre is an editor at 247wallst.com.

Yahoo and Google may dump their deal originally appeared on BloggingStocks on Fri, 31 Oct 2008 09:35:00 EST. Please see our terms for use of feeds.

A Miami bankruptcy judge ruled that the U.S. Trustee Program, an arm of the Justice Department that oversees bankruptcy court related issues, cannot seek sanctions against Countrywide Financial in bankruptcy court. The U.S. Trustee had filed three lawsuits on behalf of debtors (WSJ subscription required) who had allegedly been "abused" by Countrywide during the bankruptcy process.

The judge, A. Jay Cristol, ruled that only federal prosecutors can bring such lawsuits, while still commending the agency for "noble intentions and efforts to protect the public from reprehensible conduct by an apparently overreaching mortgage lender."

The next step will hopefully be for federal prosecutors to take on the company. Countrywide, which is now owned by Bank of America (NYSE: BAC), is still facing a plethora of litigation from its former shareholders and customers. Given the continued meltdown in the mortgage industry since the deal closed, it seems likely that Bank of America overpaid badly for the lender. The millions that Bank of America will have to put up for legal expenses, settlements, and possible judgements also won't help, and that's to say nothing of the distraction it creates for the company's executives.

Bank of America wins a round in Countrywide litigation battle originally appeared on BloggingStocks on Sat, 04 Oct 2008 11:10:00 EST. Please see our terms for use of feeds.

Google Inc. (NASDAQ: GOOG) and Yahoo! Inc. (NASDAQ: YHOO) agreed to delay their advertising sales partnership while the Justice Department reviews the deal. The news may look like a retreat by Google, but it undermines one of the key reasons Yahoo! gave for staying independent from Microsoft Corp. (NASDAQ: MSFT). Google was going to improve Yahoo!'s revenue.

It looks like there is some chance the partnership will not happen at all. That would justify the fact that Yahoo!'s stock is down by more than half from its 52-week high. Yahoo! indicated that the wait might be short. "The companies have agreed to a brief delay in implementing this agreement to continue our ongoing discussions with the (U.S.) Department of Justice," Yahoo! said in a statement. "We have had discussions with regulators and look forward to responding to their questions about this agreement."

The trouble is that Justice can take its own time. It's under no pressure to give an answer in short order. The news also begs the question of whether the two companies will wait for antitrust reviews in the EU and Canada.

Each day that passes without Yahoo! having a sales relationship in place with Google is a day its earnings do not recover.

Douglas A. McIntyre is an editor at 247wallst.com.

Google delays Yahoo! deal originally appeared on BloggingStocks on Sat, 04 Oct 2008 09:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the discussions, the Wall Street Journal reported that Microsoft Corporation (NASDAQ: MSFT) has held discussions with Time Warner Inc (NYSE: TWX) and News Corporation (NYSE: NWS), among others, about joining it in a deal that could lead to the breakup of Yahoo! Inc (NASDAQ: YHOO). Some of the sources said the preliminary talks are unlikely to result in a deal with Yahoo!
• Johnson & Johnson (NYSE: JNJ) is reportedly in exclusive talks to sell its wound-care business Ethicon to the private-equity arm of JP Morgan Chase & Co (NYSE: JPM), according to the Wall Street Journal. Terms of the potential deal were not disclosed.

• Sources familiar with the inquiry said that the Justice Department has opened a formal antitrust investigation into a deal that would allow Google Inc (NASDAQ: GOOG) to provide some search advertising for Yahoo!. The Washington Post reported that investigators will demand documents from Google and Yahoo!, as well as other large companies in the media and Internet industries.

• Reuters reported that regulators in the European Union are looking at the long-term effects of BHP Billiton Limited's (NYSE: BHP) $170B bid for Rio Tinto Group (NYSE: RTP). Sources familiar with the EU questionnaire said regulators have asked competitors and customers about effects of the deal on their businesses through 2015.

Newspaper wrap-up: EU investigating the long-term implications of Rio Tinto deal originally appeared on BloggingStocks on Wed, 02 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that probes by the U.S. Justice Department and the Securities and Exchange Commission center on whether American International Group Inc (NYSE: AIG), as well as its financial products division, which has been the source of controversy and profits, intentionally inflated the value of contracts linked to subprime mortgages.
• According to a person familiar with the matter, the Financial Times reported that South Korea's LG Electronics may consider a bid for General Electric Company's (NYSE: GE) appliance business.

• Exxon Mobil Corporation (NYSE: XOM) will sell the remaining gas stations it owns to gasoline distributors, according to the Associated Press. However, the distributors will continue to pay to use the Exxon and Mobil brand names.
• Xinhua reported that MetLife Inc (NYSE: MET) is seeking permission from Chinese regulators to combine its two ventures in China. The insurer said it believes the move will allow it to compete more effectively in the Chinese market.

Newspaper wrap-up: LG Electronics could bid for GE unit originally appeared on BloggingStocks on Fri, 13 Jun 2008 09:10:00 EST. Please see our terms for use of feeds.

Citizen focus groups voice concern over Google-Yahoo alliance originally appeared on BloggingStocks on Mon, 12 May 2008 12:49:00 EST. Please see our terms for use of feeds.

Continue reading Clemens' case shows Congress and the Justice Department have run out of things to do!

Clemens' case shows Congress and the Justice Department have run out of things to do! originally appeared on BloggingStocks on Thu, 28 Feb 2008 17:55:00 EST. Please see our terms for use of feeds.

Wesley Snipes, the unlikely face of the tax denial movement, has been acquitted of the most serious charges in his tax evasion case. He was found guilty of three of six lesser charges and could face up to three years in prison. He will also have to pay as much as $17 million in back taxes, interest, and penalties.

A jury found him not guilty on two felony charges of fraud and conspiracy, and other charges related to failing to file and pay taxes from 2002 to 2004. However, he was found guilty of failing to file returns or pay taxes from 1999 through 2001.

However his co-defendants, tax advisers, were convicted of the more serious charges, a sign that "I was just listening to my advisers" defense can work.

According to the New York Times, "Instead of prosecuting all offenders, the Justice Department brings cases against well-known individuals, hoping that widespread news coverage will encourage compliance, a policy known as general deterrence. The Snipes prosecution, like the three earlier cases that resulted in full acquittals, appears to have backfired."

The failure to convict Snipes on the most serious charges will probably embolden tax deniers. The feds had been looking to make a strong statement about the importance of paying taxes and appear to have failed miserably.

Wesley Snipes cleared of most serious charges in tax case originally appeared on BloggingStocks on Sun, 03 Feb 2008 08:40:00 EST. Please see our terms for use of feeds.

Google (NASDAQ: GOOG) has complained to the Justice Department that Microsoft's (NASDAQ: MSFT) new Vista operating system made it difficult for companies to run desktop search functions on the system from the world's largest software company.

Rather than put up a fight over the antitrust implications, Microsoft has made changes to Vista to avoid a battle with both federal and state governments. The Justice Department and seventeen states have agreed to Microsoft's solution to the problem.

Perhaps Microsoft is getting wise in its old age. Or, perhaps it is getting timid. The company has been hit with antitrust actions in Europe and the U.S. over matters that range from using its operating system to give its internet browser advantages over Netscape to harming RealNetworks (NASDAQ: RNWK) by pushing the Window Media Player with its operating system. Microsoft ended up paying billions of dollars in fines and settlements.

The news certainly represents a change for heart. Microsoft has gotten out in front of the problem rather than waiting to fight an accusation brought by a government agency.

For better or worse, this is a new Microsoft.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Microsoft gives up without a fight originally appeared on BloggingStocks on Wed, 20 Jun 2007 08:40:00 EST. Please see our terms for use of feeds.

It's never good when a key member of Congress makes a negative comment about a merger, especially when it is aimed at the Justice Department and FCC.

Sen. Herb Kohl, the chairman of the Antitrust, Competition Policy and Consumer Rights Subcommittee, said that the merger of Sirius (NASDAQ: SIRI) and XM (NASDAQ: XMSR) would create a monopoly [subscription], plain and simple. In a letter to the two agencies he wrote that the combination "would cause substantial harm to competition and consumers, would be contrary to antitrust law and not in the public interest."

This is not the end of the merger, but it may be the beginning of the end. XM recently took its morning hosts, Opie and Anthony, off the air for lewd remarks. The move may have been taken so that the FCC would not feel that the merger would open the door to a business supported by off-color programming. Howard Stern, the shock jock, is the morning host at Sirius.

Sirius is still a fairly small business with big debts, In the last quarter, it had revenue of $204 million, slightly below Wall St. estimates. The company has over $1 billion in debt.

In other words, it may need the merger to stay viable.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Washington starts to sour on XM merger with Sirius originally appeared on BloggingStocks on Thu, 24 May 2007 09:00:00 EST. Please see our terms for use of feeds.

The U.S. Justice Department wants to extend its oversight of Microsoft for two more years, until 2009. Microsoft has already agreed to it; I bet they weren't excited about it, though. AP reported today the Justice Department wants the extension because of lapses under the 2002 landmark antitrust settlement.

A U.S. judge must approve this extension of two years, which the Justice Department and 17 states support because of lapses under the current settlement.  AP also reports that government lawyers are prepared to extend oversight of Microsoft's business through 2012 if necessary.

Costs of settling the antitrust suit brought by the Justice Department and 17 states, plus all the related actions filed by individual companies hurt by Microsoft's business practices, have already cost the company billions.   Wonder where Microsoft's Internet business would be today if it had spent the billions on developing MSN and its Internet ad business instead rather than fighting these suits?

Continue reading Microsoft oversight extended to 2009?

Microsoft oversight extended to 2009? originally appeared on BloggingStocks on Fri, 12 May 2006 16:50:00 EST. Please see our terms for use of feeds.