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Coming Soon: Buffett for the Masses

January 19th, 2010

Before You Invest

Berkshire’s proposed stock split to purchase Burlington Northern could usher in a new era for the conglomerate—maybe even membership in the S&P 500

On Jan. 20, Berkshire Hathaway (BRKA) shareholders are expected to open up the company’s stock to a far less exclusive crowd of investors, a group who Chairman and Chief Executive Warren Buffett has long warned against.

By splitting Berkshire’s class B shares 50-for-1, the price of the conglomerate’s cheapest class of stock would fall from about $3,247 each to about $65.

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Posted in Finance Fraud

Tags: Admirers, Berkshire Hathaway, Billionaire, Billions Of Dollars, Bni, Brka, Burlington Northern, Conglomerate, Fine China, Index Funds, New Era, Real Game, Share Price, Shareholder Letter, Shareholders, Stock Index, Stock Market, Term Traders, Value Philosophy, Warren Buffett

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Kraft seals $19-billion Cadbury deal, New York Times reports

January 19th, 2010

Before You Invest

(Crain’s) — Kraft Foods Inc. has reached a $19-billion deal to acquire British candymaker Cadbury PLC, the New York Times reported late Monday.
The deal, which could not be independently confirmed, would make Northfield-based Kraft the world’s largest candymaker. It also would represent a triumph for Kraft CEO Irene Rosenfeld, who pursued Cadbury for four months.

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Posted in Finance Fraud

Tags: British Takeover, Cadbury, Candymaker, Cash Portion, Ceo, Chocolate Maker, Crain, Four Months, Hershey, Irene Rosenfeld, Kraft Foods Inc, New York Times, Northfield, Pence, Pennsylvania, Shareholders, Stock New, Triumph, Tuesday Morning, Warren Buffett

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SEC Files Charges Against Bank of America For Merrill Lynch Purchase

January 16th, 2010

Before You Invest

The Securities and Exchange Commission today charged Bank of America with violating the federal proxy rules by failing to disclose extraordinary financial losses at Merrill Lynch prior to a shareholder vote to approve a merger between the two companies.

The SEC’s complaint, filed in U.S.

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Posted in Finance Fraud

Tags: Bank Of America, Billions Of Dollars, Disclosure, Disclosures, Financial Losses, Fourth Quarter, Fundamental Changes, Jed S Rakoff, Judge Rakoff, March 1, Merger, Merrill Lynch, Misleading Investors, Sec Files, Securities And Exchange, Securities And Exchange Commission, Shareholder Vote, Shareholders, Southern District Of New York, Undertaking

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UK regulators will be able to rip up bankers’ contracts

November 17th, 2009

Before You Invest

The UK government is set to bring in legislation that will allow the Financial Services Authority to rip up the contracts of bankers deemed to be enjoying excessive pay packets as a reward for risk-taking.

Although the new Financial Services Bill will not apply to current banking contracts and therefore will not affect 2009 bonuses, it is set to come into place from January next year.

The measures are to be outlined on Wednesday in the Queen’s Speech.

In comments reported by the Guardian, City spokesman Lord Myners told Sky News: “What we are saying to the shareholders and boards of directors is: get real, recognize that the previous levels of bonuses are socially unacceptable.”

Other proposals that will be put forward by Gordon Brown’s government include one that will allow British customers to take part in US-style class action suits against financial institutions they feel have treated them badly.

Last week, Mr Brown sent officials to meet with the IMF to lobby for the implementation of a Tobin tax – a levy on transactions carried out between financial institutions.

Posted in Finance Fraud

Tags: Boards Of Directors, British Customers, City Spokesman, Class Action Suits, Contracts, Financial Institutions, Financial Services Authority, Financial Services Bill, Gordon Brown, Imf, Levy, Mr Brown, Myners, Proposals, Shareholders, Sky News, Style Class, Tobin Tax, Uk Government, Uk Regulators

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Inland Western and Inland American REIT In Trouble

November 3rd, 2009

Before You Invest

With $1.4 billion of debt maturing in the second half of 2009, observers expected Inland Western Retail Real Estate Trust to cut its dividend to conserve cash to help refinance this debt. This nonlisted REIT had been paying an annualized dividend of $0.64 per share which translates to a 6.4% yield based on the price ($10) at which the company sold shares in its public offerings.

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Posted in Finance Fraud

Tags: April, Buyback Program, Dividend Rate, Extent, Investors, Nbsp, Observers, Public Offerings, Real Estate Trust, Recourse, Redemptions, Reit, Retail Real Estate, Second Half, Shareholders, Shares

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HSBC facing multiple lawsuits in Ireland over Madoff investment

October 15th, 2009

Before You Invest

HSBC Holdings is facing a potential 60 lawsuits in Ireland after investors lost money it had given to the bank in Bernard Madoff’s notorious Ponzi fraud.

A Dublin court is to decide later this week whether investors can pursue a lawsuit against HSBC, which is alleged to have breached its custodian services to the clients.

It is claimed that HSBC Institutional Trust Services in Ireland used Madoff’s investment securities subsidiary.

Earlier this year, Madoff was sentenced to 150 years in prison for masterminding the scheme.

His brother and his wife have also been named in separate lawsuits relating to the scam.

The largest claimant in the HSBC case is Thema International Fund, which is seeking around $1.5 billion for its investors.

Individual shareholders, including finance houses and foreign banks, have also launched claims against the bank.

HSBC spokesman Brendan McNamara told Bloomberg: “HSBC considers that it has good defenses to these claims and will continue to defend them vigorously.”

Posted in Finance Fraud

Tags: Bernard Madoff, Bloomberg, Brother, Claimant, Custodian Services, Dublin, Finance Houses, Foreign Banks, Fraud, Hsbc Holdings, Institutional Trust Services, Investment Securities, Investors, Ireland, Lawsuits, Lost, Mcnamara, Shareholders, Spokesman, Subsidiary

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Banks’ profit likely to suffer under revamped financial rules

September 21st, 2009

Before You Invest

Leaders from the Group of 20 nations will meet in Pittsburgh this week to discuss overhauling financial regulations to prevent future crises. The rules, including increased capital requirements, likely would hinder banks’ profit. “It may not be good news for shareholders, but it would be good news for the system as a whole,” says Hyun Shin, a Princeton University economist.

more at http://online.wsj.com/article/SB125349166984426543.html

Posted in Finance Fraud

Tags: Banks, Crises, Economist, Hyun Shin, Princeton University, Shareholders, Wsj

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Barclays shareholders approve Barclays Global Investors sale to BlackRock

August 7th, 2009

Before You Invest

Shareholders at Barclays have backed the sale of investment management unit Barclays Global Investors to fund manager BlackRock.

The move was approved at the bank’s annual general meeting (AGM) in London today (August 6th).

Since voting began this morning 99 per cent of investors voted in favor of the transaction after they were recommended to approve the deal by the bank. A final count is expected to be announced later today.

The sale price of the unit will be $14.2 billion, with chairman Marcus Aguis noting that the value has increased from the initial figure of $13.5 billon after shares in BlackRock rose.

According to Bloomberg, he told investors at the AGM that the BlackRock offer is “compelling” adding that the move “allows Barclays to retain an ongoing interest in the potential upside from the larger combined business while unlocking significant capital in the short term”.

The deal was first agreed in June and will involved Barclays retaining a 19.9 per cent stake in BGI.

Posted in Blackrock, Finance Fraud

Tags: Agm, Annual General Meeting, August 6th, Barclays, Barclays Global Investors, Billon, Bloomberg, Initial Figure, Investment Management, London, Management Unit, Rose, Shareholders, Shares, Stake

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SEC Charges B of A For Statements To Investors About Merrill Lynch Purchase

August 5th, 2009

Before You Invest

The Securities and Exchange Commission today charged Bank of America Corporation for misleading investors about billions of dollars in bonuses that were being paid to Merrill Lynch & Co. executives at the time of its acquisition of the firm. Bank of America agreed to settle the SEC’s charges and pay a penalty of $33 million.

The SEC alleges that in proxy materials soliciting the votes of shareholders on the proposed acquisition of Merrill, Bank of America stated that Merrill had agreed that it would not pay year-end performance bonuses or other discretionary compensation to its executives prior to the closing of the merger without Bank of America’s consent.

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Posted in Finance Fraud

Tags: Acquisition, Bank America, Bank Of America, Bank Of America Corporation, Billions Of Dollars, Disclosures, Discretionary Compensation, Existence, Merger, Merrill Lynch, Merrill Lynch Co, Misleading Investors, Performance Bonuses, Proxy Materials, Proxy Statement, Sec Charges, Securities And Exchange, Securities And Exchange Commission, Shareholders, Year End

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B of A To Pay $33 Million Fine

August 3rd, 2009

Before You Invest

Bank of America has agreed to pay a $33 million penalty to settle government charges that it misled investors about Merrill Lynch’s plans to pay bonuses to its employees.

In seeking approval to buy Merrill, Bank of America told its shareholders that Merrill agreed not to pay year-end bonuses without Bank of America’s consent. But the Securities and Exchange Commission says Bank of America had authorized New York-based Merrill to pay $5.8 billion in bonuses.

The bonuses amount to nearly 12 percent of the $50 billion Charlotte, N.C.-based Bank of America paid for Merrill.

The SEC says Bank of America agreed to pay $33 million to settle the charges without admitting or denying the allegations.