Wed Sept 30 2020
Nikola share price jumps today despite CEO resignation.
Gee do you suppose GM bought a large number of shares to boost the price and make their decision look better?
Professor Elam
Accounting & Investing Info for San Antonio A & M
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Professor Elam
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Professor Elam
Tuesday Sept 29 2020
J P Morgan admits 15 traders are guilty of spoofing.
Over eight years, 15 traders at the biggest U.S. bank caused losses of more than $300 million to other participants in precious metals and Treasury markets, according to court filings on Tuesday. JPMorgan admitted responsibility for the traders’ actions. The Justice Department filed two counts of wire fraud against the bank’s parent company but agreed to defer prosecution related to the charges, under a three-year deal that requires the bank to report its remediation and compliance efforts to the government.
Professor Elam comment
Where were the internal auditors?
Where were the external auditors?
15 Years of this surely resulted in outsized dept profits, did Jamie Dimon not notice?
Why is Jamie Dimon worth $247 M a year if he never notiiced this, I mean I will take the job for $20 M a year saving $7 M and not notice just as well!
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Professor Elam
Monday Sept 28 2020
The best received presentation I have done for professional accounting groups in San Antonio regards the Carlos Uresti Fraud involving Four Winds Logistics.
He received 11 felony convictions for his involvements as well as a $6.3 M restitution requirement.
As a State Senator he earned a retirement payment Now the second wife and the Federal Government are arguing over the split.
Eventually Judge Ezra Dyer who presided over the case will make the decision.
Senator Uresti lost his Senate seat, whatever wealth he had accumulated, his law license and practice, his second wife, and gained a sentence lasting until 2029.
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Professor Elam
Monday Sept 28 2020
Milton Trevor has a checkered past with varoius start ups.
GM claims it did due diligence on its involvement but that does not appear to be the case.
This story reminds me of Barry Minkow, another big promoter at an early age.
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Professor Elam
Weekend Sept 26 2020
In ACCT 5308 today I thought someone said that J P Morgan rescued Chase during the 2008 financial crisis.
However Chase merged with Morgan in Year 2000. Mergers are an inclusive activity. Hence most mergers happen again during expansive social mood at market tops. This occurred right at the 1982-2000 market bull run.
https://en.wikipedia.org/wiki/JPMorgan_Chase
As of 2019, the asset management arm of the bank has US$2.988 trillion in assets under management, while its investment and corporate bank arm holds US$25.45 trillion in assets under custody.[10] At US$45.0 billion in assets under management, the hedge fund unit of JPMorgan Chase is the third largest hedge fund in the world.[11]
Good grief, look at the list of fines and penalties since Enron. Talk about Too Big to Fail!
- 8 Controversies
- 8.1 Conflicts of interest on investment research
- 8.2 Enron
- 8.3 WorldCom
- 8.4 Jefferson County, Alabama
- 8.5 Failure to comply with client money rules in the UK
- 8.6 Mortgage overcharge of active military personnel
- 8.7 Truth in Lending Act litigation
- 8.8 Alleged manipulation of energy market
- 8.9 Criminal investigation into obstruction of justice
- 8.10 Sanctions violations
- 8.11 National Mortgage Settlement
- 8.12 Speculative trading
- 8.13 Mortgage-backed securities sales
- 8.14 "Sons and Daughters" hiring program
- 8.15 Madoff fraud
- 8.16 Corruption investigation in Asia
- 8.17 September 2014 cyber-attack
- 8.18 Alleged discrimination lawsuit
- 8.19 Improper handling of ADRs
- 8.20 Investments in coal, oil and gas projects
- 8.21 Leaked study on climate change impacts
- 8.22 Paying Lip Service
- 9 Offices
- 8 Controversies
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Professor Elam
Weekend Sept 26 2020
In ACCT 5308 we are reading about frauds and scandals at
Ernst and Young, three n less
accused fraud at Nikola via Hindenburg Research
Rio Tinto CEO resigns over exploding historic site
J P Morgan to pay $1 billion fine
Frauds and excessive hype occur at market tops which is precisely where we are now. And this mood recurs over different time periods, times change but unremembered social mood does not.
consider the song, Let's Misbehave, take a guess when it was written and recorded.
"Let's Misbehave" is a song written by Cole Porter in 1927, originally intended for the female lead of his first major production, Paris. It was discarded before the Broadway opening in favor of "Let's Do It, Let's Fall in Love". However, the star of the Broadway production, Irene Bordoni, performed it for a phonograph recording which was labelled as being from the production of Paris.
The song with partial lyrics was a notable 1928 hit for Irving Aaronson and his Commanders. The song was recorded earlier with partial lyrics for the Brunswick label by Scrappy Lambert and Billy Hillpot with Ben Bernie's orchestra in December 1927, and by Tom Stacks with Harry Reser's band "The Bluebirds" in January 1928. Banjo Buddy's (a.k.a. Harold Sandelman) recording in April 1928 contained full lyrics and verse. [1] It was included perhaps most infamously in the 1962 revival of Anything Goes. It was also added into the 1991 version of Porter's You Never Know (musical).
contrast these lyrics near top of the market in the Roaring 20s with the far more constrained Victorian era of the 15890s
We're all alone
No chaperon
Can get our number
The world's in slumber
Let's misbehave!There's something wild
About you, child
That's so contagious
Let's be outrageous
Let's misbehave!When Adam won Eve's hand
He wouldn't stand
For teasin'
He didn't care about
Those apples out of season!They say the Spring
Means just one thing
To little lovebirds;
We're not above birds
Let's misbehave!Let's misbehave!
Let's misbehave! -
Professor Elam
Friday Sept 25 2020
https://finance.yahoo.com/news/neiman-marcus-emerges-bankruptcy-173932839.html
Chapter 11 BK is a restructuring so the company can emerge and do business again. typically the stockholders get nothing, the bondholders are not paid but become the new stockholders. Neiman was taken by a hedge fund which did the typical thing, strip out the cash, and replace with debt, hello BK
This would never have happened when Stanley Marcus ran the company.
https://en.wikipedia.org/wiki/Stanley_Marcus
He authored a book reflectingon the experience named Minding the Store
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Professor Elam
Friday Sept 25 2020
Regal Cinema theaters have been closed for months. And now the British owned chain is turning to the one man who just might be able to rescue the chain from oblivion, calling James BondIn the original series Bond was always paired off against a super villain. Now he takes on the biggest villain of all, the aftermath of the covid 19 virus.He's need the Beretta, the Aston Martin, and for sure all the Bond girls he can muster. It has been the longest ever between Bond films, five years. Will social mood in the aftermath of the election be enough to drive folks to the theater, we shall see!That's right it'sNo Time to Die, The Regal Casino has put all the chips on the roulette wheel one number in a bet to stay alive, yep007 -
Professor Elam
Wed Sept 23 2020
What Does It Take to Get Kicked out of this Club anyway
Wanda Sykes on the Catholic Priest Scandal
JP Morgan Chase to pay one billion dollar fine.
Spoofing consists of placing orders that will not be filled to convince the market of an upcoming move. But when not filled, those entering the orders go the other way.
In 2015, JPMorgan was among firms accused of manipulating currencies. It pleaded guilty to an antitrust charge and paid a $550 million fine to the Justice Department. The bank also paid penalties to U.S. regulators.
The TBTF parade continues.
Oh CEO Jamie Dimon has a salary of $27 Million and a net worth of $1.6 Billion
https://www.celebritynetworth.com/richest-businessmen/ceos/jamie-dimon-net-worth/
But then you and I have not defrauded anyone, proud of us ?????
This is an outrage.
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Professor Elam
Wed Sept 23 2020
Former CEO Trevor Milton may have said way too much on the record.
Read this article to understand the difference in a used car salesman puffing a previously owned model
And how the SEC views statements about a public company made on the record. Hindenburg Research disputes claims made by Trevor.
The same can be said of statements by Trump and Biden, loose lips sink ships.
Professor Elam 