The former president of New York’s small Park Avenue Bank was arrested on fraud charges, one of the first such cases involving a TARP recipient. The bank was shut Friday.
Charles J.
Posts Tagged ‘Chief Executive’
Bank Chief Accused of TARP Fraud
March 16th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Antonucci, Bank Bailout, Bank Chief, Bank Fraud, Bank Of New York, Chief Executive, Economic Meltdown, False Statements, First Person, Former President, Fraud Charges, Hps, Park Avenue Bank, Prosecutors, Recipient, Regulators, Verge, Wsj 
Comments OffFormer HSBC employee steals data for 24,000 accounts
March 13th, 2010 Before You Invest 
Data surrounding up to 24,000 client accounts was stolen by a former technology expert from HSBC’s Swiss subsidiary, the bank has admitted.
Hervé Falciani, an IT specialist at the Geneva branch, is thought to have committed the theft three years ago.
The crime, which was discovered during 2009, affected accounts opened before October 2006, 9,000 of which have subsequently been closed, the bank announced.
Alexandre Zeller, chief executive of the Swiss subsidiary, said: “We deeply regret the situation and unreservedly apologise to our clients for this threat to their privacy.”
HSBC is only thought to have recently uncovered the full extent of the crime perpetrated by its ex-employee.
Tax authorities in France seized the data and increased diplomatic tensions between the two countries after it announced the information would be used to crackdown on French taxpayers with Swiss accounts.
However, both countries subsequently agreed to not use the data to implement an investigation into tax evasion.
In a statement, HSBC said it did not believe that the stolen information had been used to allow third parties to access client accounts.
The bank has subsequently invested approximately $93 million on upgrading security surrounding its IT systems.
Posted in Finance Fraud Tags: Chief Executive, Client Accounts, Countries, Crackdown, France, Full Extent, Geneva Branch, Hsbc, Privacy, Subsidiary, Swiss Accounts, Tax Authorities, Tax Evasion, Taxpayers, Technology Expert, Tensions, Third Parties, Zeller Comments OffGoldman Sachs made $100m on 131 days of 2009
March 3rd, 2010 Before You Invest Goldman Sachs made at least $100 million on 131 days in 2009 – equivalent to once every two days.
The figure was revealed by the Securities and Exchange Commission, in a filing that showed the bank made the profits by taking larger risks than it did in 2008.
Its daily ‘value at risk’ figure – the amount Goldman Sachs estimated it could lose in a day’s trading – stood at $218 million, up from $180 million the previous year.
However, the bank only lost money on 19 occasions in 2009, with the figure never exceeding more than $100 million.
David Hendler, an analyst with CreditSights, told the Financial Times that the figures were not surprising.
“It’s impressive, but it’s not unexpected,” he said. “They were one of the few games in town in 2009.”
Last month, Goldman Sachs announced that its chief executive Lloyd Blankfein is to receive a $9 million bonus for his work last year – a lower-than-expected amount and much lower than the $67.9 million he received in 2007.
Posted in Finance Fraud Tags: 100 Million, Bonus, Chief Executive, Financial Times, Games, Goldman Sachs, Hendler, Lloyd Blankfein, Lost Money, Occasions, Previous Year, Profits, Risk Figure, S Trading, Securities And Exchange, Securities And Exchange Commission, Value At Risk Comments OffHSBC boss Geoghegan hands £4m bonus to charity but top 5 bankers share £38m
March 2nd, 2010 Before You Invest • Michael Geoghegan refuses rise in salary
• Bank reports 24% fall in pretax profit for 2009 to $7bn
• HSBC’s highest-paid banker gets £10m bonus
Five bankers at HSBC shared a bonus bonanza of more than £38m last year, even as the bank tried to demonstrate it was heeding public concern about City pay through a decision by its chief executive Michael Geoghegan to hand his £4m bonus to charity .
As the bank reported a 24% fall in pretax profit for 2009 to $7bn (£4.63bn), the bank’s annual report showed that the company had intended to hand the chief executive a pay rise “in light of the international competition position and the increased responsibilities”.
Posted in Finance Fraud Tags: 1m, 3m, 4m, 5m, 7m, 9m, Annual Report, Bonanza, Charities, Chief Executive, Competition Position, Executive Director, Gulliver, International Competition, Investment Bank, Michael Geoghegan, Pretax Profit, Public Concern, Report Showed That, Report Suggests That Comments OffHSBC chief attacks bonus culture
January 27th, 2010 Before You Invest Stephen Green, the chairman of HSBC, has criticised the bonus culture and remuneration levels that have been enjoyed by the financial sector.
Speaking to the Financial Times, Mr Green said that pay has become “distorted” due to the plethora of potential bonus options available to those working in the industry.
“You’ve had bonuses paid off gross income, you’ve had bonuses paid off first-day [profits], you’ve had bonuses paid without any capital charge and so you can see how that gives rise to the wrong and frankly inflated numbers,” the HSBC boss said.
However, Mr Green went on to predict that the new economic realities presented by the financial crash would bring about a fairer system.
HSBC currently defers around 40 per cent of its bonuses but has yet to announce how much extra it will pay its bankers for work in 2009.
Last week, HSBC chief executive Michael Geoghegan told Sky News that bankers were beginning to leave London in response to the higher levels of taxation being imposed on staff working in the banking industry there.
Posted in Finance Fraud Tags: Banking Industry, Bonus Options, Boss, Chief Executive, Culture, Economic Realities, Financial Crash, Financial Sector, Financial Times, Gross Income, Hsbc, Inflated Numbers, London, Michael Geoghegan, Plethora, Profits, Remuneration Levels, Sky News, Taxation Comments OffCitadel’s investment bank chief resigns
January 16th, 2010 Before You Invest
(Crain’s) — Citadel Investment Securities LLC has lost the man it hired a year ago to get its investment banking unit off the ground. Todd Kaplan, who joined Citadel’s securities division in March, resigned Thursday, a Citadel spokeswoman said. Mr.
UK investment banks offering to double salaries
January 9th, 2010 Before You Invest UK investment banks are doubling base salary levels in an attempt to win back staff shed during the height of the financial crisis, industry experts have claimed.
Robert Iati, global head of consulting at research firm TABB Group, told Bloomberg that many of the investment bankers who joined brokerages are being lured back to their original posts.
“We have begun to see a boomerang effect,” he stated.
“The larger banks are feeling a bit more secure in hiring back some of those traders from the smaller guys.”
His comments were backed up by Daryl Bowden, co-chief executive of the equities unit of London-based brokerage ICAP, who stated that salaries were being doubled and compensation offers lifted.
He said that was partly due to the fact that the banking sector in the UK was now operating with limited risk, making it more attractive to employees.
Last week, the Guardian reported that investment bankers at Barclays were in line for pay rises of up to 150 per cent.
Posted in Finance Fraud Tags: Banking Sector, Barclays, Base Salary, Boomerang Effect, Bowden, Brokerage, Brokerages, Chief Executive, Financial Crisis, Global Head, Iati, Icap, Industry Experts, Investment Bankers, Investment Banks, Salary Levels, Tabb Group, Uk Banks, Uk Investment, Uk Salaries No Comments »SEC Alleges that Sunwest Mangement Commited Fraud
December 11th, 2009 Before You Invest U.S. regulators charged Sunwest Management and its former chief executive with securities fraud on Monday, alleging that the retirement home operator lied to investors and eventually operated the business as a kind of Ponzi scheme.
The Securities and Exchange Commission accused Oregon-based Sunwest, which operates more than 200 retirement homes in the United States, and former chief executive Jon Harder of concealing the risks of investments and exposing investors to “massive losses,” Reuters said.
Between 2006 and 2008, Sunwest raised at least $300 million from investors and used the funds for down payments on approximately 100 retirement homes with the balance financed by institutional lenders and banks, according to the S.E.C.’s lawsuit.
Investors were told they were buying an ownership interest in a specific retirement home that would generate enough profit to pay a 10 percent annual return, and that Sunwest had a history of never missing a payment, the suit said.
Posted in Finance Fraud Tags: Banks, Chief Executive, Down Payments, Institutional Lenders, Investments, Investors, Massive Losses, Ownership Interest, Regulators, Retirement Home, Reuters, Sec, Securities And Exchange, Securities And Exchange Commission, Securities Fraud, Sunwest, United States No Comments »Value Line fires its legendary investment brain
December 8th, 2009 Before You Invest Statistician Samuel Eisenstadt, 87-year-old inventor of Value Line’s famed investment strategy, says new CEO told him his services were “no longer needed.”
An employee who often fought with departed Value Line Chief Jean Bernhard Buttner has been told to retire.
Wall Street’s Spin Game
November 22nd, 2009 Before You Invest 
A mock wanted poster of Lloyd Blankfein, chief executive of Goldman Sachs, sits during a union rally outside the firm’s offices in Washington.
Posted in Finance Fraud Tags: Chief Executive, Game, Goldman Sachs, Lloyd Blankfein, Spin, Union Rally, Wall Street, Wanted Poster No Comments »
