Archive | September, 2011

Why Would Anyone Invest in China?

Francine McKenna writes that Deloitte Shanghai refuses to turn over workpapers and documents relevant to the SEC in their investigation of Longtop. “Chinese law prohibits Deloitte China from providing the requested documents directly to a foreign regulator,” said spokesperson Lauren Mistretta. “Deloitte China is caught in the middle of conflicting demands by two government regulators, […]

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Goldman Case Worth Watching

Goldman Sachs “is being run for the benefit of employees rather than shareholders,” according to attorney John Harnes on behalf of Southeastern Pennsylvania Transportation Authority, a shareowner. The company has lost $50 billion in market value since 1999 but set aside $8.44 billion for the company’s compensation pool in the first six months of this […]

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The Billionaire's Tea Party

Check out the fellow 43 minutes in. He goes to Amazon, pulls up liberal books and gives them one star. No need to actually read them or contribute more than a shout down to the debate. Do those “liberal” books contain flawed facts or reasoning? That would require evidence and analysis. Apparently, that goes against […]

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What SEC Rules Need Repealed?

Because today’s financial markets are dynamic and fast-moving, the regulations affecting the markets and its participants must be reviewed over time and revised as necessary so that the regulations continue to fulfill the SEC’s mission. The SEC has long had formal and informal processes in place to review its existing rules, and a considerable portion […]

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Proxy Access: What Now, With Ban to be Lifted?

The SEC will not challenge the decision of the U.S. Court of Appeals for the District of Columbia Circuit, No. 10-1305, which struck down the agency’s rule to make it easier for shareowners to nominate directors to corporate boards. (see SEC Fails to Appeal on Proxy Access, 9/6/2011 and Statement by SEC Chairman Mary L. Schapiro on […]

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SEC Fails to Appeal on Proxy Access

The SEC will not challenge the decision of the U.S. Court of Appeals for the District of Columbia Circuit, No. 10-1305, which struck down the agency’s rule to make it easier for shareowners to nominate directors to corporate boards. The announcement, made late on Tuesday by SEC Chairman Mary Schapiro, marks a major blow to large […]

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Review: The Corporate Objective

Although large public companies dominate the world, there is no unanimity as to their objective. Andrew Keay tackles this very important topic with skill and in considerable depth. First, he examines the two most dominant theories, shareholder primacy and stakeholder theory. Unsurprisingly, he finds them falling short and goes on to propose the inelegant but well thought out […]

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Labor Day: The Scariest Jobs Chart Ever

What the chart (made by Calculated Risk) shows is the trajectory of job losses and gains during the great recession, compared to previous recessions. So as you can see, the depth of the decline was much worse than any other recession, and what’s more, the pace of the recovery is much weaker than in previous […]

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Impact Investing

The Fall issue of Cliff Feigenbaum’s Green Money Journal has an interesting article on “impact investing,” the term used to describe direct investments that that explicitly seek to achieve both financial return and social impact. A November 2010 report by JPMorgan and the Rockefeller Foundation, titled Impact Investments: An Emerging Asset Class, estimates the size […]

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Obtaining a Broker Letter & Short-termism

Usually obtaining a broker letter, evidencing ownership, to submit with a shareowner proposal is easy but sometimes it isn’t. I’d love to hear of difficulties you have experienced. Send me your story by email and maybe I’ll post it. Here’s my latest experience with TD Ameritrade. I must say, up until now they have been […]

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Will 2011 be a Watershed Year for Activism?

2011 was the first proxy season in which companies were required to provide advisory votes on executive compensation. Corporate governance advocates, mindful of the fact that annual compensation for CEOs at S&P 500 companies increased by 35% in 2010, might well find themselves agreeing with James McRitchie of CorpGov.net, who told SocialFunds.com in June, “2011 could be a […]

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