This article, depicts the findings that the Securities Exchange Commission gathered relating to the the fraud case filed against Goldman Sachs Group Inc. on Friday April 16th. However the SEC still has a great amount of persuading to do in terms of the jury, to convey the actual purposes for some of the activities Goldman was involved in. The main issue at hand deals with Goldman's actions and investing during the credit crisis of 2009.
Goldman is said to have been selling products to investors that were correlated to the performance of specific mortgages without ever explaining to investors that a hedge fund betting on these mortgages helped the product. Outside lawyers feel that the Securities Exchange Commission in fact has the right amount of information regarding Goldman's activity in order to prosecute them for the firms actions. However it is quite important, regardless of the outcome, that the SEC delivers a meaningful message through this litigation process.
Goldman Sachs replied to the accusations in that the firm was quite "disappointed" with the SEC filing suit and bringing up these allegations upon their firm. Goldman feels that all investors should know that others are at all times betting on the direction of the product, by either betting for the success or failure of the product. In addition, lawyers who reviewed the complaint from the SEC agreed that their was nothing illegal about Goldman's actions.
Paulson & Co. was the hedge fund that helped in designing the product, however it was Goldman's responsibility to disclose Paulson's role. Bradley Simon, a white collar crime defense lawyer and partner of Simon and Partners LLP, stated that the SEC is going to have to prove that Goldman not only knew Paulson & Co. was short selling it, but also had a large role in gathering weak mortgages to bet against it.
The complaint filed by the SEC, alleges that Goldman intentionally did not disclose this information to investors pertaining to Paulson's involvement, however led them to believe that ACA Management LLC, an independent mortgage analysis firm, designed the product.
This case will all come down to the jurors, if it even makes it that far, however being such a complex and intricate case, there might be difficulty understanding all the financial complexity involving the product. However, Goldman has been frowned upon by many due to their firm receiving bailout money while still paying out large bonuses to top executives, so this will be an interesting case.
This issue, will allow us to examine both a top fortune 500 corporation as well as the sternness of a federal agency. The SEC in this particular case is taking an aggressive stand and will more than likely have to deliver exceptionally in order for the actions of Goldman Sachs to be punishable. Was Goldman deceitful in their ways of doing business and did they act unethically when trying to sell this particular product? Investor relations for such a firm, is quite vital in a situation like this. For instance, the IR department must preserve the corporations name in a time like this, as well as convey to top investors that Goldman is a trustworthy corporation and would never partake in such activities that would be detrimental to the firm and/or investors.
Sunday, April 18, 2010
Sunday, April 11, 2010
Safeguarding Social Networks
Throughout the article, "Safeguarding Social Networks from Stock Sleaze" found on IRWebReport.com, it discusses the utilization of integrating social media tools as well as a standard code of ethics for online usage. There is much debate in terms of the present day Internet utilization by public corporations and issues regarding trust, transparency, and reputation.
The Web is becoming more of an integral part of day to day activities in terms of investors, analysts, and corporations. Being that the Web is such a utilized entity, there needs to be an established standards of online proper behavior and etiquette and it must be adhered by by all users in order to maintain a common level of respect and trust between all users and corporations who participate.
There have been various accusations that companies have been violating securities laws pertaining to their online activities either through blogs or other social media networks. Companies such as Agoracom, is one of the many who has been brought up in the media for disclosure issues which in turn only damages their brand name and reputation, not leaving a positive image with the public.
Incidents as such should give other corporations within the industry a warning if they too are taking place in such activities. Hiding behind fake pseudonyms and posting on blogs or message boards in order to boast about one's company or say negative comments, is not a good means of doing business, especially for key executives.
Media tools such as Twitter and Facebook are being flooded with stock touts and promotions nowadays and are being used as a means to gain an unfair advent age. Therefore their is a need for the Code of Ethics or standards of NIRI to set a model for public companies to follow in order to display and acquire better business practices for their firm. As I have learned, it is quite vital that companies, public and private utilize certain standards in order to maintain a level of respect and professionalism. However, public corporations need to adhere to higher standards in terms of disclosure.
The Web is becoming more of an integral part of day to day activities in terms of investors, analysts, and corporations. Being that the Web is such a utilized entity, there needs to be an established standards of online proper behavior and etiquette and it must be adhered by by all users in order to maintain a common level of respect and trust between all users and corporations who participate.
There have been various accusations that companies have been violating securities laws pertaining to their online activities either through blogs or other social media networks. Companies such as Agoracom, is one of the many who has been brought up in the media for disclosure issues which in turn only damages their brand name and reputation, not leaving a positive image with the public.
Incidents as such should give other corporations within the industry a warning if they too are taking place in such activities. Hiding behind fake pseudonyms and posting on blogs or message boards in order to boast about one's company or say negative comments, is not a good means of doing business, especially for key executives.
Media tools such as Twitter and Facebook are being flooded with stock touts and promotions nowadays and are being used as a means to gain an unfair advent age. Therefore their is a need for the Code of Ethics or standards of NIRI to set a model for public companies to follow in order to display and acquire better business practices for their firm. As I have learned, it is quite vital that companies, public and private utilize certain standards in order to maintain a level of respect and professionalism. However, public corporations need to adhere to higher standards in terms of disclosure.
Sunday, March 28, 2010
NIRI, SCSGP Issue Recs on Proxy Advisory Firm Oversight
Throughout this article, found on ComplianceWeek, is discussed the measures the Securities Exchange Commission is taking in terms of tightening guidelines and increasing disclosure for proxy advisory firms. The proxy advisory firms that are being targeted are directly linked towards influencing how investors vote their shares.
Recently adopted is a requirement for all proxy advisor firms to register as investment advisers due to the discussion paper published by the National Investor Relations Institute as well as the Society of Corporate Secretaries & Governance Professionals. The basis of these requirements is to look closer at proxy mechanics and voting issues within the industry.
NIRI President and Chief Executive Jeff Morgan stated that a copy of the document regarding these issues has been filed and sent to the Securities Exchange Commission and hopes that the recommendations about the revolving issues will be discussed in the upcoming concept release.
In order to maintain guidelines and standards, it is vital that action is taken in regards to proxy advisers firms seeing how they remain highly unregulated and unsupervised. There needs to be an improvement in the aspects of standards, procedures, conflicts of interest, etc. These firms can have a large significance in terms of influence on director elections and corporations seeing how a majority of their pension funds and mutual fund clients typically have large stock holdings.
Due to changes in the New York Stock Exchange Rule 452, which has reduced influence of retail investors and the Investment Advisers Act of 1940, which proposes disclosing conflicts of interest, their have been positive movements in terms of strengthening and tightening guidelines and disclosure for proxy advisory firms.
It is quite evident, that corporations as well as proxy advisor firms have to efficiently and effectively follow the guidelines put in place by the SEC as well as NIRI. Investor Relations is only growing more rapidly as time progresses and rules and regulations are only getting stronger and more disclosure is becoming a norm. With the help and guidance of the SEC, NIRI, & SCSGP, it can only benefit firms by allowing for more accurate information and in a timely manner.
Recently adopted is a requirement for all proxy advisor firms to register as investment advisers due to the discussion paper published by the National Investor Relations Institute as well as the Society of Corporate Secretaries & Governance Professionals. The basis of these requirements is to look closer at proxy mechanics and voting issues within the industry.
NIRI President and Chief Executive Jeff Morgan stated that a copy of the document regarding these issues has been filed and sent to the Securities Exchange Commission and hopes that the recommendations about the revolving issues will be discussed in the upcoming concept release.
In order to maintain guidelines and standards, it is vital that action is taken in regards to proxy advisers firms seeing how they remain highly unregulated and unsupervised. There needs to be an improvement in the aspects of standards, procedures, conflicts of interest, etc. These firms can have a large significance in terms of influence on director elections and corporations seeing how a majority of their pension funds and mutual fund clients typically have large stock holdings.
Due to changes in the New York Stock Exchange Rule 452, which has reduced influence of retail investors and the Investment Advisers Act of 1940, which proposes disclosing conflicts of interest, their have been positive movements in terms of strengthening and tightening guidelines and disclosure for proxy advisory firms.
It is quite evident, that corporations as well as proxy advisor firms have to efficiently and effectively follow the guidelines put in place by the SEC as well as NIRI. Investor Relations is only growing more rapidly as time progresses and rules and regulations are only getting stronger and more disclosure is becoming a norm. With the help and guidance of the SEC, NIRI, & SCSGP, it can only benefit firms by allowing for more accurate information and in a timely manner.
Monday, March 22, 2010
NIRI experts discuss Investor Relations and Twitter
Throughout this article, the Nation Investor Relations Institute (NIRI) discusses how the will be holding a seminar this Wednesday, March 24th 2010. The seminar will be taking place at Giovanni's - The Waters Edge in Darien, CT starting at 12 PM.
The event will consist of a Panel of experts including: Darrel Heaps a representative of Q4 Web Systems, Dan Dykens from Meetthestreet, Doug Chia from Johnson & Johnson, and Dennis Walsh from Sharon Merrill Associates.
Q4 Web Systems provides on-demand software as well as helps protect corporations reduce risk in terms of disclosure and compliance. Meetthestreet provides a calender of times and dates for corporations doing roadshows, which is vital and important to a corporations investor relations as well as public image. Johnson & Johnson is a worldwide leader in health care products and manufacturing. Last but not least, is Sharon Merrill Associates whom specializes in investor relations and communications.
This event will revolve around the topic of investor relations and the utilization of Twitter, if it should be implemented, why or why not, and the positive and negative aspects of utilizing this source of media. Throughout my coursework, I have learned that Twitter is a great source to utilize in terms of public relations because it is quick, reaches multiple and various audiences, and the best factor, is it is free of cost. I find that Twitter is more effective, however in terms of corporations utilizing this software, they must be aware of what to say and not to say.
67% of global online population use Twitter and blogs, so their is a vast majority of listeners and audiences that follow tweets regarding company information. In addition, 55% are utilizing Twitter for blogging, so their is a great amount of interaction, so we will just have to wait and see what the panel of professionals will have to say about the utilization of Twitter at this weeks event hosted by NIRI.
The event will consist of a Panel of experts including: Darrel Heaps a representative of Q4 Web Systems, Dan Dykens from Meetthestreet, Doug Chia from Johnson & Johnson, and Dennis Walsh from Sharon Merrill Associates.
Q4 Web Systems provides on-demand software as well as helps protect corporations reduce risk in terms of disclosure and compliance. Meetthestreet provides a calender of times and dates for corporations doing roadshows, which is vital and important to a corporations investor relations as well as public image. Johnson & Johnson is a worldwide leader in health care products and manufacturing. Last but not least, is Sharon Merrill Associates whom specializes in investor relations and communications.
This event will revolve around the topic of investor relations and the utilization of Twitter, if it should be implemented, why or why not, and the positive and negative aspects of utilizing this source of media. Throughout my coursework, I have learned that Twitter is a great source to utilize in terms of public relations because it is quick, reaches multiple and various audiences, and the best factor, is it is free of cost. I find that Twitter is more effective, however in terms of corporations utilizing this software, they must be aware of what to say and not to say.
67% of global online population use Twitter and blogs, so their is a vast majority of listeners and audiences that follow tweets regarding company information. In addition, 55% are utilizing Twitter for blogging, so their is a great amount of interaction, so we will just have to wait and see what the panel of professionals will have to say about the utilization of Twitter at this weeks event hosted by NIRI.
Saturday, March 13, 2010
The Publicity Club of New England
The Publicity Club of New England happens to be the oldest nonprofit public relations trade organization in the Northeast, which was founded in 1948. What the club primarily insists on doing, is to promote and encourage involvement within the area of communications, including public relations, marketing, etc.
As of March 9th, The Publicity Club announced its new program that will be taking place this upcoming Monday, March 15th at the Westin Waltham-Boston in Waltham, Massachusetts. This unique program is titled, "Investor Relations 101 for PR Pros." The program is sponsored by Business Wire, where at 6 P.M. Monday night, individuals from all over can come and discuss the importance of investor relations.
The program will discuss how a majority of small companies or pre-IPO companies leaving communicating up to the public relations professional, and how all members of a firm should have the knowledge and skills to act on behalf of the public relations sector of their company. Even larger firms need to learn how to integrate their PR and IR departments, so they can work hand in hand, and in balance with one another.
In summary, this program seems like a very attractable event to attend, being quite informative and beneficial for all. The program will also cover the basics of the SEC, Initial Public Offering's, and how to communicate to all audiences about quarterly earnings. Their will be representatives from the NIRI, Tatum, Sharon Merrill Associates, Compliance Week, and many more other prestigious names and firms.
As of March 9th, The Publicity Club announced its new program that will be taking place this upcoming Monday, March 15th at the Westin Waltham-Boston in Waltham, Massachusetts. This unique program is titled, "Investor Relations 101 for PR Pros." The program is sponsored by Business Wire, where at 6 P.M. Monday night, individuals from all over can come and discuss the importance of investor relations.
The program will discuss how a majority of small companies or pre-IPO companies leaving communicating up to the public relations professional, and how all members of a firm should have the knowledge and skills to act on behalf of the public relations sector of their company. Even larger firms need to learn how to integrate their PR and IR departments, so they can work hand in hand, and in balance with one another.
In summary, this program seems like a very attractable event to attend, being quite informative and beneficial for all. The program will also cover the basics of the SEC, Initial Public Offering's, and how to communicate to all audiences about quarterly earnings. Their will be representatives from the NIRI, Tatum, Sharon Merrill Associates, Compliance Week, and many more other prestigious names and firms.
Monday, March 1, 2010
Bluegrass Energy & SISM Research
Throughout this article, SISM Research Innitiates Independent Research Coverage on Bluegrass Energy, Ernest C. Schlotter tells about the reviews and opinions of Bluegrass Energy, as well as the standards that SISM upholds within it's practices and research.
Schlotter is a senior analyst with InvesTrend as well as an affiliate with SISM research. As of February 22nd, Schlotter has compiled a report regarding Bluegrass Energy and the companies stock target valuation and rationale for the information they suggested.
It is vital that future investors gather a wide array of information and data on companies before trading and investing in publicly traded companies. In addition, one must decipher between analyst reports and report disclosures, and should only then utilize the data received with the help and guidance of a registered financial advisor.
In terms of Bluegrass Energy, this is a fairly new company that specializes in exploitation and production to acquire oil and natural gas. They specifically target to exploit these resources through the Permian Basin. BLUG owns 60% of the working interest within Grayburg Jackson Pool, which is approximately 2,800 acres, allowing for more than a hundred possible drilling opportunities.
Therefore, Schlotter along with his team of specialists at SISM Research are quite excited to start analyzing Bluegrass Energy, seeing how they are a new corporation, but have multiple opportunities for long term growth. Through the integrity that SISM Research upholds, they must continue in their ways to exceed the CFA Institute Code of Ethics and Standards of Professional Conduct as well as the NIRI guidelines.
Schlotter is a senior analyst with InvesTrend as well as an affiliate with SISM research. As of February 22nd, Schlotter has compiled a report regarding Bluegrass Energy and the companies stock target valuation and rationale for the information they suggested.
It is vital that future investors gather a wide array of information and data on companies before trading and investing in publicly traded companies. In addition, one must decipher between analyst reports and report disclosures, and should only then utilize the data received with the help and guidance of a registered financial advisor.
In terms of Bluegrass Energy, this is a fairly new company that specializes in exploitation and production to acquire oil and natural gas. They specifically target to exploit these resources through the Permian Basin. BLUG owns 60% of the working interest within Grayburg Jackson Pool, which is approximately 2,800 acres, allowing for more than a hundred possible drilling opportunities.
Therefore, Schlotter along with his team of specialists at SISM Research are quite excited to start analyzing Bluegrass Energy, seeing how they are a new corporation, but have multiple opportunities for long term growth. Through the integrity that SISM Research upholds, they must continue in their ways to exceed the CFA Institute Code of Ethics and Standards of Professional Conduct as well as the NIRI guidelines.
Thursday, February 18, 2010
Proxy Season & US Bancorp CEO
Recently through an article written by Brad Allen, editor and publisher for RiskRewardNews, Mr. Allen goes into detail about the change of Investor Relations as the twenty first century continues, as well as upcoming complaints when proxy statement season begins and see what Richard Davis has to say about banking as an industry.
"Or fencing on a tightrope in the eye of the storm" is what Allen likes to call the pace of Investor Relations. He speaks of how as time progresses, traders are outnumbering investors, markets are unclear, and technology is on the rise, while regulation still has some catching up to do.
On a different note, Richard Davis speaks of the upcoming proxy season, where many shareholders will most likely be inquiring about executive compensations, who the executive officers are, what the board compensation is, and so on.
Davis, chairman of the Washington DC based Financial Services Roundtable as well as president and CEO of US Bancorp out of Minneapolis feels a sign of "activism" approaching from shareholders. Davis feels that the banking industry has failed the American people in many ways and knows that it is not only him who feels this way. Therefore, he knows that shareholders will be sure to fill out proxy statements come time.
It is clear to see that if good IR practices had been utilized, that maybe so many financial institutions as well as corporations wouldn't have failed, and we may have been able to avoid such a downfall in the economy, or at least taken a smaller hit. However, now company's must deal with the outside voice, the voice of the public, their consumers and clientele, which will have much to say in the upcoming month.
"Or fencing on a tightrope in the eye of the storm" is what Allen likes to call the pace of Investor Relations. He speaks of how as time progresses, traders are outnumbering investors, markets are unclear, and technology is on the rise, while regulation still has some catching up to do.
On a different note, Richard Davis speaks of the upcoming proxy season, where many shareholders will most likely be inquiring about executive compensations, who the executive officers are, what the board compensation is, and so on.
Davis, chairman of the Washington DC based Financial Services Roundtable as well as president and CEO of US Bancorp out of Minneapolis feels a sign of "activism" approaching from shareholders. Davis feels that the banking industry has failed the American people in many ways and knows that it is not only him who feels this way. Therefore, he knows that shareholders will be sure to fill out proxy statements come time.
It is clear to see that if good IR practices had been utilized, that maybe so many financial institutions as well as corporations wouldn't have failed, and we may have been able to avoid such a downfall in the economy, or at least taken a smaller hit. However, now company's must deal with the outside voice, the voice of the public, their consumers and clientele, which will have much to say in the upcoming month.
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