(Reuters) — CBOE Holdings Inc., which runs the Chicago Board Options Exchange, reported lower-than-expected earnings on Thursday, with quarterly profit falling 11 percent.CBOE’s Chief Financial Officer Alan Dean called the results — the company’s first since its $339 million initial public offering in June — “solid,” and pledged to keep a tight control over expenses in future quarters.But the company projected core expenses to rise 3 percent to 5 percent annually, a factor that could weigh on the stock price today, said Ed Ditmire, a New York-based analyst for Macquarie Securities.”The cost growth guidance, while low by industry standards, is above our projections,” Ditmire told investors in a note on Thursday.
Posts Tagged ‘Reuters’
CBOE’s drop in profit disappoints investors
August 5th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Alan Dean, Cboe, Chicago Board Options, Chicago Board Options Exchange, Chief Financial Officer, Contract Options, Ditmire, Electronic Exchange, Electronic Trading, High Frequency, Initial Public Offering, Macquarie Securities, Net Income, Options Exchanges, Organic Growth, Quarterly Profit, Reuters, Stock Price, Tight Control, Volume Trends 
Comments OffDisney to sell Miramax for more than $660 million
July 31st, 2010 Before You Invest (Reuters) Walt Disney Co has struck a deal to sell Miramax, the studio behind such films as “Trainspotting” and “No Country for Ancient Men,” for more than $660 million to a group that includes construction magnate Ron Tutor and investment firm Colony Capital LLC.The deal marks the culmination of a drawn-out sale that attracted star-studded bidders, including the Weinstein brothers, who founded the studio.The new owners will focus on maximizing the value of Miramax’s library, a source familiar with the situation said.
Posted in Finance Fraud Tags: Academy Award Winners, Barrack, Bidders, Capital Llc, Culmination, Film Properties, Film Resources, Investment Firm, Magnate, Old Men, Pirates Of The Caribbean, Private Equity Firm, Production Operations, Reuters, S Library, Shakespeare In Love, Trainspotting, Walt Disney, Walt Disney Co, Weinstein Brothers Comments OffU.S. Michigan Consumer Sentiment Index Fell to 67.8
July 30th, 2010 Before You Invest Confidence among U.S. consumers fell in July to the lowest level since November, posing a threat to the largest part of the economy.The Thomson Reuters/University of Michigan final index of consumer sentiment declined to 67.8 this month from 76 in June. The preliminary measure was 66.5.Employment growth has been slow to take hold and lower home prices are depressing wealth. The lack of confidence may further restrain consumer spending, which accounts for 70 percent of the economy, and limit the pace of growth.
Madoff trustee sues family entities
July 30th, 2010 Before You Invest (Reuters) – The trustee liquidating Bernard Madoff’s investment firm late on Thursday filed three lawsuits against entities affiliated with family members of the imprisoned swindler, accusing them of taking nearly $200 million of investor cash to fund “lavish lifestyles.”The lawsuits filed in the U.S. bankruptcy court in Manhattan collectively seek to recover more than $30 million, and are the latest effort by the trustee Irving Picard to recoup assets to be distributed to victims of Madoff’s estimated $65 billion Ponzi scheme.One of the cases was filed against a family fund, another against a business that owned oil and gas properties, and a third was against a trading-related business.In the complaint against the family fund, Picard accused Madoff’s brother Peter, sons Andrew and Mark, and niece Shana of failing to perform their senior management duties at Bernard L Madoff Investment Securities LLC, the center of the patriarch’s fraud.”While acting in complete dereliction of their management responsibilities to BLMIS, Peter, Andrew, Mark and Shana were also among the unlawful recipients of close to $200 million of BLMIS customer funds which they used to fund lavish lifestyles,” lawyers for Picard alleged in one of the lawsuits.Bernard Madoff, 72, pleaded guilty in March 2009 to running a decades-long Ponzi scheme. He is serving a 150-year sentence in a North Carolina federal prison.
Posted in Finance Fraud Tags: Andrew Mark, Bankruptcy Court, Bernard Madoff, Brother Peter, Customer Funds, Dereliction, Federal Prison, Investment Firm, Investment Securities, Investor Cash, Lavish Lifestyles, Management Duties, Management Responsibilities, Niece, Patriarch, Peter Andrew, Reuters, Shana, Sons Andrew, Swindler Comments OffTrustee could sue 1,000 Madoff investors
July 28th, 2010 Before You Invest (Reuters) – The trustee overseeing the liquidation of Bernard Madoff’s asset management firm might sue about 1,000 former clients of the now-imprisoned swindler who he believes made a profit on their investments.Irving Picard, the court-appointed trustee, “could sue” about half of the estimated 2,000 former Madoff clients whom he considers “net winners,” or those who withdrew more money than they place in, a spokesman said.Picard has until December to file such “clawback” lawsuits, marking the two-year anniversary of Madoff’s December 11, 2008 arrest and the start of criminal and civil proceedings.While Picard would prefer to settle, “we have received few responses, if any, to our overtures,” the spokesman said.Many so-called “net winners” consider themselves victims of Madoff’s estimated $65 billion Ponzi scheme and have argued that clawback lawsuits will increase their financial pain.They contend that, while they may have taken out more money than they deposited while investing with Madoff, they suffered losses when the fraud was exposed.
Posted in Finance Fraud Tags: Asset Management Firm, Bernard Madoff, Civil Proceedings, Fraud, Investing, Investments, Investors, Lawsuits, Liquidation, Losses, Money, Overtures, Reuters, Spokesman, Trustee, Year Anniversary Comments OffE*Trade Posts Surprise Profit After Three Years of Losses
July 23rd, 2010 Before You Invest By Reuters* Back in black as loan loss provisions drop sharply* New CEO: Likely no need to raise capital again* Q2 EPS 12 cents vs Wall St estimate of 11-cent loss* Shares jump 7 percent after hoursNEW YORK – Online broker E*Trade Financial Corp surprised Wall Street by posting its first quarterly profit in three years, helped by a far smaller provision for loan losses than analysts had expected, and its shares rose 7 percent.A sharp trading spike also helped snap 11 quarters of losses for the E*Trade, whose shares were hammered in recent years as its mortgage-related loans soured.Company executives told Reuters on Thursday it was now unlikely to need to raise external capital — a marked change from a year ago when bankruptcy seemed a possibility.”It’s quite a substantial improvement, and I reckon it will be quite a pleasant surprise for the Street.” said Chief Executive Steven Freiberg, who took the reins in April.E*Trade’s shares rose 7 percent after hours after closing up 4.46 percent at $13.35.The company set aside $166 million for loan losses in the quarter, compared with $268 million in the previous quarter.
Posted in Finance Fraud Tags: Charge Offs, Citadel Investment Group, Company Executives, E Trade, E Trade Financial, E Trade Financial Corp, Freiberg, Loan Loss Provisions, Loan Losses, Morningstar, Online Broker, Quarter Charge, Quarterly Profit, Reins, Reuters, Second Quarter, Shareholder, Straight Quarter, Substantial Improvement, Trade Posts Comments OffHighlights of the financial overhaul
July 22nd, 2010 Before You Invest (Reuters) – President Barack Obama on Wednesday signed a sweeping overhaul of the financial regulatory system. Following is a brief look at the bill’s main provisions:SWAPS PUSH-OUT: Wall Street firms that dominate the $615 trillion over-the-counter derivatives market will have to spin off dealing operations in some swaps, but can keep many swaps in-house, including derivatives to hedge their own risk.Much of OTC derivatives trading will be redirected through more accountable channels such as exchanges and clearinghouses.
Posted in Finance Fraud Tags: Bankruptcies, Barack Obama, Biggest Banks, Collapse, Consumer Watchdog, Derivatives Market, Derivatives Trading, Financial Forest, Financial Regulatory System, Government Regulation, Hedge Funds, High Risk, Lehman Brothers, Loophole, Orderly Liquidation, Otc Derivatives, Private Equity, Proprietary Trading, Reuters, Sharp Teeth Comments OffFabrice Tourre denies fraud allegations
July 20th, 2010 Before You Invest Goldman Sachs executive Fabrice Tourre has denied acting improperly in regard to the controversial Abacus collateralized debt obligation (CDO) product.Fabrice TourreLast week, the bank agreed to pay out $550 million after the Securities and Exchange Commission (SEC) accused it of misleading investors by not informing them that hedge fund Paulson & Co – which helped make the CDO – was betting on its failure.The SEC said it would continue its case against Mr Tourre, who is said to have helped design the product.But lawyers acting on his behalf have questioned for the civil fraud charges against him to be dropped, reports Reuters.”The purported claims against Mr Tourre are based solely on alleged actions and omissions concerning information known to many different Goldman Sachs employees working in various aspects of its business,” his legal team said.Goldman Sachs has not admitted or denied the SEC’s claims, but did state that it regrets that marketing materials for the CDO did not tell Paulson’s involvement.
Posted in Finance Fraud Tags: Acting, Amp, Civil Fraud, Collateralized Debt Obligation, Failure, Fraud Allegations, Fraud Charges, Goldman Sachs, Hedge Fund, Lawyers, Marketing Materials, Misleading Investors, Regard, Reuters, Securities And Exchange, Securities And Exchange Commission Comments OffSEC probably will need to add 800 positions
July 20th, 2010 Before You Invest Mary Schapiro, chairman of the Securities and Exchange Commission, said the agency probably will need to add 800 positions in response to regulatory reform. Schapiro told a House subcommittee that carrying out everything laid out in the bill will be “logistically challenging and extremely labor intensive.” more at http://uk.reuters.com/article/idUKN1920697920100719
Posted in Finance Fraud Tags: House Subcommittee, Mary Schapiro, Regulatory Reform, Reuters, Sec, Securities And Exchange, Securities And Exchange Commission Comments OffBerkshire Hathaway unit to buy CNA’s asbestos, pollution liabilities for $2 billion
July 15th, 2010 Before You Invest (Reuters) – A unit of Warren Buffett’s Berkshire Hathaway Inc. will take over asbestos and environmental pollution liabilities now held by CNA Financial Corp. in exchange for a $2 billion fee.CNA, which is 90 percent owned by conglomerate Loews Corp., said Berkshire’s National Indemnity Co unit would take over $1.6 billion of net liabilities, retroactive to Jan.
Posted in Finance Fraud Tags: Ajit Jain, Asbestos Claims, Asbestos Exposure, Berkshire Hathaway, Berkshire Hathaway Inc, Chief Executive Officer, Cna Financial Corp, Conglomerate, Credit Risk, Environmental Pollution, Loews Corp, Mid 1970s, National Indemnity, Omaha Nebraska, Reinsurance, Reuters, Thomas Motamed, Tidal Wave, Upfront Payments, Warren Buffett Comments Off
