While bull markets and easy financing are critical for strong M&A, another important factor is government action. For example, the Telecommunications Reform Act of 1996 led to a surge in M&A activity, as the government allowed competition in local and long-distance communications. This is why President Obama’s recent statement on finance reform is so important, especially to the private equity and hedge fund sectors. He declared: “No bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund.” Symbolically, Obama gave his speech during Goldman Sachs’ ( GS ) earnings call, where the company reported profits of $4.79 billion. The main growth driver was from its trading and principal investment activities (which amounted to $6.41 billion in revenues). It’s these kinds of activities that Obama considers too risky for federally-supported financial institutions. Continue reading Obama’s Bank Bashing May Ignite M&A Obama’s Bank Bashing May Ignite M&A originally appeared on DailyFinance on Sat, 23 Jan 2010 17:50:00. Filed Under: Company News , Economy , JP Morgan Chase , Goldman Sachs Permalink | Tweet this! | Comments

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As the exchange-traded fund industry continues to grow in size and popularity, it’s beginning to look as though the more money investors pour into its coffers, the more problems the industry may potentially have to address. Continue reading Rapidly Growing ETF Industry May Need Its Own Trade Group Rapidly Growing ETF Industry May Need Its Own Trade Group originally appeared on DailyFinance on Wed, 06 Jan 2010 12:12:00. Filed Under: Goldman Sachs , Charles Schwab Permalink | Tweet this! | Comments

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Filed under: Company News , Technology , Economy It won’t be such a happy holiday season for employees of InkStop. The printer ink and electronics retailer, which abruptly shut its doors Oct. 1, had said it would reopen after restructuring. On Friday, however, parties in charge of liquidating the company’s assets announced that they had begun a sale of InkStop’s inventory to raise money to pay off the retailer’s debts. Not all of the retailers 152 stores will reopen for the sale, said the liquidation partners in a written statement. Just 25 to 35 InkStop locations will reopen at selected sites in and around the Philadelphia, Washington, Cleveland, Detroit, Atlanta, St. Louis, Dallas and Denver metropolitan areas. Among the products to be sold are digital cameras, GPS units, MP3 players and computer gadgets. The sale will continue until all merchandise is sold, the liquidation partners said. Continue reading InkStop locked employees out in the cold, then reopens to liquidate InkStop locked employees out in the cold, then reopens to liquidate originally appeared on DailyFinance on Fri, 11 Dec 2009 13:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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InkStop locked employees out in the cold, then reopens to liquidate

Filed under: Economy Consumer sentiment unexpectedly soared in December, topping off a week in which continuing jobless claims declined further and the Dow made progress solidifying gains above 10,000. The Reuters/University of Michigan Survey of Consumers said its consumer sentiment index for December (preliminary) surged to 73.4 from 67.4 in November, Reuters reported Friday. The index totaled 70.6 in October, 74.0 in September. and 67.5 in August. The index hit a cycle low of 55.3 in November 2008, and the index’s record low of 51.7 was set in May 1980. A Bloomberg News surveyed had expected the index to rise to 68.2 in December (preliminary). Continue reading Consumer sentiment surges in December, beating estimates Consumer sentiment surges in December, beating estimates originally appeared on DailyFinance on Fri, 11 Dec 2009 14:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Consumer sentiment surges in December, beating estimates

Filed under: Company News , Economy , Goldman Sachs , Bank of America , Citigroup More employees of firms receiving extensive government aid will face caps on their pay , thanks to Obama administration pay czar Kenneth Feinberg (pictured). For top-earning workers at Citigroup ( C ), American International Group ( AIG ), General Motors and GMAC, Feinberg has limited cash compensation at $500,000. The move affects the 26th through 100th highest-paid employees at the companies. Continue reading Obama’s pay czar limits pay packages for more top executives Obama’s pay czar limits pay packages for more top executives originally appeared on DailyFinance on Fri, 11 Dec 2009 14:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Filed under: Company News , Goldman Sachs Hell hath no fury like the American public scorned. In a stunning climbdown, Goldman Sachs ( GS ) has succumbed to popular outrage, announcing Thursday that its top 30 executives won’t receive wads of bonus cash in their stocking this Christmas, but rather stock that cannot be sold for five years. Goldman, long the bastion of Wall Street’s super-elite, also said it would grant shareholders a say in executive compensation — a previously unthinkable concession. Goldman’s move represents a breathtaking capitulation for a firm that had planned to dole out over $20 billion in bonuses to its employees — many of whom are already millionaires. Still, it remains to be seen whether Blankfein’s no-cash decree will blunt public outrage at the firm. After all, it’s not like the executives have taken ascetic vows and gone off to live in the wilderness like the Desert Fathers . Continue reading Goldman Sachs backs down on pay, yanks 2009 cash bonuses for top execs Goldman Sachs backs down on pay, yanks 2009 cash bonuses for top execs originally appeared on DailyFinance on Thu, 10 Dec 2009 15:55:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Filed under: Columns , Healthcare I’ve been inundated by questions from patients and friends over the past few weeks regarding two recent recommendations concerning cancer screenings for women. The big worry that keeps coming up is “are we rationing women’s health care?” That’s because first, the U.S. Preventive Task Force on Nov. 16 recommended against routine mammography for women under 50 and called for regular screenings every other year instead of annually thereafter. The group also downplayed the usefulness of conducting regular breast self-exams. A few days later, the American College of Obstetricians and Gynecologists (ACOG) released new cervical cancer screening guidelines stating that women should begin having Pap tests at age 21, then every other year between 21 and 29. The previous recommendation had called for women to begin annual Pap tests a few years after their first sexual activity, or by 21, whichever comes first. Continue reading The Doctor Is In: Where new screening guidelines for women go wrong The Doctor Is In: Where new screening guidelines for women go wrong originally appeared on DailyFinance on Tue, 01 Dec 2009 14:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Main Street is reeling from mounting job losses and a grim outlook by Federal Reserve officials. Wall Street, on the other hand, may be enjoying a sharp rebound. On Tuesday, a report by New York State Comptroller Thomas DiNapoli forecast that the number of vanishing finance jobs may be far lower than anticipated. Job cuts may not exceed 35,000 — close to losses following the relatively minor recession of 2001, and much lower than the 47,000 officials had forecast while preparing New York City’s budget in June. A year ago, many had forecast job losses exceeding 80,000 . Continue reading Wall Street job losses are surprisingly low, and firms eye record profits Wall Street job losses are surprisingly low, and firms eye record profits originally appeared on DailyFinance on Tue, 17 Nov 2009 15:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Filed under: Company News , Economy , People , Goldman Sachs , Bank of America Deposed New Jersey Gov. Jon Corzine is the latest name to surface in the mad scramble to replace Bank of America Corp. ( BAC ) chief executive Kenneth Lewis. This would be among the more spectacularly bad ideas in the history of banking. Corzine — who told Bloomberg News that he has not spoken with B of A — is the wrong candidate at the wrong time. Or, as a campaign commercial might put it: “Jon Corzine. Wrong for New Jersey. Wrong for Bank of America.” Continue reading Jon Corzine to head Bank of America? Not likely — and not wise Jon Corzine to head Bank of America? Not likely — and not wise originally appeared on DailyFinance on Thu, 12 Nov 2009 18:00:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Filed under: Economy U.S. consumers’ efforts to pay down their credit card debts continue. Outstanding U.S. consumer credit fell by $14.8 billion or at a 7.2 percent annual rate in September — the eighth straight monthly credit decline, the U.S. Federal Reserve announced Friday. Economists surveyed by Bloomberg News had expected to see a September consumer credit contraction of $10 billion, after a revised $9.9 billion decline in August, and a $19 billion plunge in July. Consumer credit is down 4.7 percent compared to a year ago, and balances have fallen in 12 of the past 14 months. In September, total outstanding consumer credit, including revolving and non-revolving credit, declined to $2.46 trillion, or by 4.7 percent compared to a year ago, the Fed said. In Q3, total outstanding debt declined at a 6.1 percent annual rate; it fell at 6.6 percent and 3.7 percent annual rates in Q2 and Q1, respectively. Continue reading U.S. consumer credit debt falls for eighth straight month in September U.S. consumer credit debt falls for eighth straight month in September originally appeared on DailyFinance on Fri, 06 Nov 2009 17:20:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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