New York Times (August 2)
The Securities and Exchange Commission (SEC) fined Citigroup $75 million for misleading shareholders. “Too big to fail” author Andrew Sorkin notes the irony. This settlement punishes the shareholders, the very “same people who were arguably defrauded by its [Citigroup’s] failure to disclose its exposure to subprime mortgages in the first place.” The SEC admits this is “awkward,” but claims corporate settlements best encourage companies to obey disclosure regulations. Former SEC Chairman Harvey Pitt has a different opinion, “a class of innocent shareholders is being asked to pay for the misconduct of corporate officers.”
Tags: Citigroup, Disclosure, Fine, SEC, Shareholders
New York Times (May 7)
At 2:42 yesterday, the Dow Jones Industrial Average (DJIA) went into freefall. By 2:47, the DJIA recorded its greatest ever intraday point drop. Individual stocks experienced even greater volatility. Procter & Gamble fell 37%. Accenture dropped from $40 to $0.01. The New York Times says the panic was the result of “one part nervous traders, one part Greek crisis and one part trader error.” After falling more than 1,000 points, the DJIA largely recovered, closing down 347.80 points. The SEC and major stock exchanges have launched an investigation into the “unusual trading activity.”
At 2:42 yesterday, the Dow Jones Industrial Average (DJIA) went into freefall. By 2:47, the DJIA recorded its greatest ever intraday point drop. Individual stocks experienced even greater volatility. Procter & Gamble fell 37%. Accenture dropped from $40 to $0.01. The New York Times says the panic was the result of “one part nervous traders, one part Greek crisis and one part trader error.” After falling more than 1,000 points, the DJIA largely recovered, closing down 347.80 points. The SEC and major stock exchanges have launched an investigation into the “unusual trading activity.”
Tags: Dow Jones, Greek crisis, Panic trading, SEC
