Although it didn’t make the headlines last week, State Street suffered a setback in its long-running legal dispute over the fees it charges clients for foreign exchange services when a District Court judge in Boston denied its motion to dismiss the suit. State pension funds in Arkansas and California have sued State Street, alleging that […]
This is the season for tallying CEO compensation, and for shaming those who profited while shareholders suffered. I’m no defender of high CEO pay, but much of the reporting on it is inconsistent at best, and in many cases it’s highly misleading. The problem arises from combining two things that should be separate: pay granted […]
The Barclays annual shareholder meeting last week was a loud and lively affair, with howls of protest directed at CEO Bob Diamond and Chairman Marcus Agius over the bank’s pay practices. Here’s how it was reported by the New York Times: “The atmosphere at the meeting was hostile from the start, and the speeches were […]
E.F. Hutton is set to return to the brokerage world, according to a report in The Wall Street Journal. Backed by former Hutton executives, the long-dormant name is being revived and the firm is set to launch later this year. E.F. Hutton’s return is a measure of how badly damaged major financial brands are in […]
I must have missed this Reuters interview with KKR co-founder Henry Kravis last week, which isn’t too surprising because it didn’t make many waves. Based on an interview with Reuters Editor-in-Chief Steven Adler, it is the very definition of a puff piece. The article barely touched on whether Kravis believes the favorable tax treatment enjoyed […]
It was a busy weekend for damage control, with two examples of executives who tried to regroup after enduring very bad news. First, there was an effort by former MF Global CEO Jon Corzine to counter a memo that emerged late last week that said Corzine authorized the transfer of client monies to J.P. Morgan. […]
Hartford Financial CEO Liam McGee on Wednesday announced plans to break up the company, largely along the lines recommended by hedge-fund activist John Paulson, whose funds own about 8.5% of the insurer. It looks like McGee never put up a serious effort to counter Paulson’s recommendation to separate Hartford’s property and casualty insurance business, despite […]
Now that we are in day two of the Memo that Shook Wall Street – the most famous resignation since Jerry Maguire’s “mission statement” – it’s worth asking whether the New York Times has anything to answer for in this episode. Landing a prominent article on the Times op-ed page doesn’t happen overnight. Unlike the […]
In an earlier post, I suggested that Goldman send a note to its employees to respond to Greg Smith’s public resignation letter. It appears my advice was taken. Goldman chiefs Lloyd Blankfein and Gary Cohn did indeed send a memo (perhaps I’ll send them a large bill). It was very well done. Here’s why: It […]
The public resignation letter by Greg Smith, a Goldman executive, is lighting up the blogosphere. It’s certainly not the way Jake Siewert imagined spending his first day on the job as head of communications. As a candid, personal confession from a Goldman insider, the letter is very damaging. It counters the notion that Goldman has […]