The SEC alleges that ITT executives engaged in a scheme to hide looming losses from loans the company guaranteed to students attending its colleges. The company denies the fraud.
Investors need information about political spending so that they can make informed decisions. Political activity creates risk for companies, as Target discovered in 2010 when it saw boycotts in response to political spending in favor of a gubernatorial candidate who opposed same-sex marriage.
In my more than two decades of work on runaway executive pay, sparking public outrage has never been the problem. The real challenge has been persuading the public there's something we can do about it.
With payments out in the open, citizens can hold their governments accountable for how they spend payments, and companies can be held accountable for paying what is due. Armed with that information, activists can push for more of that money to be spent back in their communities.
Since the Supreme Court's decision in Citizens United more than five years ago, the potential for corporations to secretly spend shareholder money to influence elections has been an ever-increasing threat to investors. The investors the SEC is charged to protect have called on the agency to deal with this problem, but thus far Mary Jo White hasn't moved the rule forward.
Investment crowdfunding leaders will convene in Chicago next week to welcome the 96% of Americans who until now haven't been able to participate in this innovative new form of investing.
An explosive new blog post at AdvisorHub purports to quote a high-ranking Morgan Stanley executive deriding the notion that Wall Street would ever allow a real fiduciary standard to be applied to its business. The arrogant assumption that Wall Street runs Washington and the patent disregard for investor well-being give the alleged emails a convincing ring.
Arming the mid-size companies with a new funding channel might trigger the valuations hike further, imposing the notorious "bubble" the VCs like to talk about. Don't underestimate the power of billboards or TV commercials with investment offerings.
In an increasingly frantic effort to derail new protections for retirement savers, SIFMA, the self-described "voice of the U.S. securities industry," has purchased yet another study that purports to show why a pending Department of Labor (DOL) proposal to require all financial advisors to put their customers first is unnecessary and inappropriate.
On March 12 Securities and Exchange Commission Chair Mary Jo White publicly returned fire for the first time on the charge from outsiders and two of her fellow commissioners that her agency is soft on Wall Street. Cut through her rhetoric, however, and what she seems to be implying is: "The SEC trusts Wall Street."
The reasons for private equity's newfound interest in marketing to retail investors are not hard to find. Public sector workers and their pension funds are under attack and unlikely to be an expanding source of capital for the private equity industry going forward.
If a contest for the most Orwellian bill title were held, Rep. Ann Wagner's newly reintroduced "Retail Investor Protection Act" would be a serious contender. Despite its title, this legislation has nothing to do with protecting retail investors.
In addition to shedding crocodile tears over the potential harm to middle-income savers if brokers have to start acting in their customers' best interests, financial services firms and their lobbyists have increasingly voiced their outrage that the Department of Labor believes it has a role to play in regulating retirement advice.
Ever wonder what the fuss about a fiduciary standard is all about? Last week's Reuters article revealing how the Puerto Rico arm of UBS drove reluctant brokers to sell high-risk bond funds to their customers offers a perfect illustration.
Former Texas Republican Governor Rick Perry has joined the board of directors at Energy Transfer Partners, a natural gas and propane company headquartered in Dallas, Texas that has proposed to build a controversial Bakken crude oil pipeline across Iowa.
Though the LatAm capital markets are fighting to ward off further downward movement due to stumbling oil prices and weakening currencies, one long-term strategy that will continue to bring more liquidity to these markets is better corporate governance practices.