Continue reading Bermuda Readies Itself for New Insurance Regulation in Europe

Bermuda Readies Itself for New Insurance Regulation in Europe originally appeared on BloggingStocks on Mon, 22 Mar 2010 16:00:00 EST. Please see our terms for use of feeds.

During the 2003 -- 06 boom years, three agencies, The Federal Deposit Insurance Corp., the Office of Thrift Supervision, and the Office of the Comptroller of the Currency gave out millions of dollars in bonuses to regulators of these agencies.

The bonuses were supposedly given out for "superior" performance. Records show that at least $19 million in bonuses was awarded.

Continue reading Government Gave Bank Regulators Millions in Bonuses During Financial Meltdown

Government Gave Bank Regulators Millions in Bonuses During Financial Meltdown originally appeared on BloggingStocks on Fri, 19 Mar 2010 16:20:00 EST. Please see our terms for use of feeds.

A study by the Washington-based Institute for Policy Studies found that executives from our top 10 financial firms earned about $90 million in the value of stock options in recent months.

This is how the game was played. Bankers took stock options on their companies when their stock prices were low during the financial meltdown. Now, with the price of bank stocks shooting up, the value of these options also skyrocketed, helping them to pocket a neat $90 million if they choose to exercise them.

Continue reading Bailed-out bankers earn $90 million in stock options

Bailed-out bankers earn $90 million in stock options originally appeared on BloggingStocks on Wed, 02 Sep 2009 15:00:00 EST. Please see our terms for use of feeds.

According to The Wall Street Journal, "Citigroup Inc. has recently started operating under a regulatory agreement that could subject the company to greater restrictions on its operations." While the filings are not detailed, it appears that activities at some of Citi's businesses will have to be disclosed to the government.

Continue reading Citigroup in chains is good for shareholders

Citigroup in chains is good for shareholders originally appeared on BloggingStocks on Thu, 29 Jan 2009 12:19:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• People familiar with the issue said that European regulators are gearing up to file new antitrust charges against Intel Corporation (NASDAQ: INTC). The charges, the Wall Street Journal reported, would allege Intel gave major European retailers an incentive not to sell computers that use Advanced Micro Devices Inc (NYSE: AMD) chips.

• The New York Times reported that News Corporation's (NYSE: NWS) New York Post and The Daily News, owned by Mortimer Zuckerman, are exploring a print pact and have been in talks to find ways to combine some business functions of the papers, according to people briefed on the matter.
• According to sources, the San Francisco Business Times reported that Washington Mutual Incorporated (NYSE: WM) may be planning more layoffs in September. It is unclear how many employees will be affected and from which departments.

• In an effort to preserve capital, data compiled by Bloomberg showed that troubled mortgage companies Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, and Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac, may cut dividends after more than $11B in combined losses since last year.
• Three people familiar with the matter said that the SEC subpoenaed Wall Street investment banks including The Goldman Sachs Group Inc (NYSE: GS), Deutsche Bank AG (NYSE: DB) and Merrill Lynch & Co Inc (NYSE: MER) in its hunt and crack down on suspected manipulation of Bear Stearns and Lehman Brothers Holdings Inc (NYSE: LEH) shares. Bloomberg reported that two of the people said the SEC, which yesterday curtailed short selling in financial stocks, is looking for e-mails and trading records and is also examining whether securities firms have "adequate controls" to deal properly with misconduct.

Newspaper wrap-up: Wall Street firms subpoenaed by SEC originally appeared on BloggingStocks on Wed, 16 Jul 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The banking unit of National City Corporation (NYSE: NCC) recently entered into a "memorandum of understanding" with federal regulators, the Wall Street Journal reported. The banking unit has bad loans, and the agreement basically means that the bank is on probation, as the government pressures financial institutions.
• The Wall Street Journal also reported that Justice Department criminal prosecutors and its U.S. attorney's office in Brooklyn, NY are investigating American International Group Inc (NYSE: AIG) to see if they overstated the value of contracts tied to subprime mortgages.

• Lehman Brothers Holdings Inc (NYSE: LEH) is thinking of releasing its Q2 results a week earlier than planned, and announcing a capital raising plan at the same time, according to the New York Post, in order to reduce negative speculation about its future.
• The Economic Times reported that Indian auto companies Tata Motors Limited (NYSE: TTM) and Mahindra and Mahindra may be interested in acquiring Hummer from General Motors Corporation (NYSE: GM).

Newspaper wrap-up: Federal regulators have National City under scrutiny originally appeared on BloggingStocks on Fri, 06 Jun 2008 08:00:00 EST. Please see our terms for use of feeds.

Some senators from the South still wear linen suits and believe that foreign interests should not own land or a part of any business in the U.S. They also probably still smoke and eat fatty foods.

But the serious side of congressional concern about overseas investments in big U.S. companies and financial firms is that sovereign funds could find a more and more hostile reception to their investments in companies like Citigroup (NYSE: C).

According to the FT, "The Treasury, which considers the discussions with the funds a priority, hopes it can pursue its agenda through the International Monetary Fund, which is drawing up a code for SWF investments, expected in draft form in April." The document is probably no more than a "feel good" piece of paper that Treasury can wave around in the offices of Congress and regulators.

The fact of the matter is that the government here would like sovereign funds to have different rules than those that govern people like Carl Icahn. If a raider can take over an entire company and break it into pieces, why can't the same be done by rich interests from Kuwait, if they have the money? Any "state secrets" at a firm like Citi can be burned before the process starts, in the name of keeping important government data confidential.

The bonfire from the documents can warm the management as they leave the building.

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

U.S. wants sovereign funds made more 'transparent and accountable' originally appeared on BloggingStocks on Thu, 24 Jan 2008 10:50:00 EST. Please see our terms for use of feeds.

Continue reading Anglo American could benefit from BHP-Rio Tinto deal

Anglo American could benefit from BHP-Rio Tinto deal originally appeared on BloggingStocks on Thu, 08 Nov 2007 13:42:00 EST. Please see our terms for use of feeds.

$7 billion in cost savings if Sirius (SIRI) and XM (XMSR) merger goes through ... if originally appeared on BloggingStocks on Wed, 10 Oct 2007 13:33:00 EST. Please see our terms for use of feeds.

A number of high-profile CEOs must not have provided enough information on their compensation packages. The SEC is sending them letters asking for a little more detail. The agency has already sent out about 300 letters.

According to The Wall Street Journal, the heads of very large companies, including GE (NYSE: GE) and Coca-Cola (NYSE: KO) are being asked to provide more information about how they are paid [subscription required].

Among the things that interest the SEC is how pay consultants make calculations for corporate boards. The Journal quotes the SEC's director of corporation finance, John White, saying, "We're seeing a lot of really vague disclosure" about individual performance goals and targets.

The issue can't really be that hard to resolve, especially at very big companies. They know full well how their CEO's pay is set, who is involved, who is consulted from outside the company, and what the final comp numbers are. It is not rocket science.

It is, however, another area of friction between the SEC and big companies.

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

SEC digs for details on CEO compensation originally appeared on BloggingStocks on Fri, 31 Aug 2007 08:05:00 EST. Please see our terms for use of feeds.