Wall Street

Wall Street

3 Examples of Outrageous CEO Spending at the Expense of Shareholders

The more money the big wigs have, the more outrageous CEO spending habits start to become.

During the financial crash of 2008, one CEO decided it was a good time to use the company's money to buy a $1,405 trash can.

But when we did a little digging, we found out that even he wasn't the worst offender of ridiculous CEO spending...

Wall Street

How to Profit When Citigroup's $56 Trillion "Casino" Catches Fire

They say even a busted clock is right twice a day: The International Monetary Fund recently called Deutsche Bank AG the "world's riskiest financial institution."

Deutsche Bank stock is barely off 30-year lows, and it spent a great deal of this late summer frantically unloading some of its multibillion-dollar derivatives book. It's too late for Deutsche Bank, but that hasn't stopped it from trying.

Another troubled Eurozone bank, Credit Suisse Group, has been doing the same with its derivatives.

But if you thought these bad banks would have any trouble unloading their toxic "weapons of financial mass destruction," you'd be wrong.

In a breathtakingly stupid move, one American bank has been on a derivatives shopping spree, eagerly buying up these insanely risky instruments just as fast as Deutsche Bank and Credit Suisse can sell them.

Like a kind of Mayflower, full to bursting with toxic stupidity and risk, these ticking time bombs are heading across the Atlantic.

And that means there's another huge opportunity waiting for you...

Wall Street

Why This CEO Wants to Cancel Earnings Season Forever

This didn't exactly make the news, but in July, financial chieftains, including Berkshire Hathaway's Warren Buffett, BlackRock's Larry Fink, and JPMorgan Chase's Jamie Dimon, got together to talk corporate governance practices.

A noncontroversial topic, right?

Well… no. According to the Financial Times, Fidelity Investments, the $2.2 trillion asset manager, up and walked out of a Dimon-led effort to codify some best practices for American boardrooms.

So it seems some of finance's heaviest hitters are divided on the subject of good governance.

Nevertheless, the group released nine-page paper, "Commonsense Corporate Governance Principles."

And in it we have a clue as to just what it is that has these titans of finance so divided…

What's more, if these guidelines are widely adopted, investing will change, for everyone from JPMorgan on down to individual investors.

And most likely not at all for the better...

Wall Street

Donald Trump's Treasury Wouldn't Resurrect Glass-Steagall – Here's Why

The official GOP party platform would see Glass-Steagall reinstated.

But Donald Trump's reported pick for Treasury secretary could bury any hope of resurrecting the big bank regulation...

Wall Street

How Bernie Madoff Is Still Calling the Shots on Wall Street

Back in 1998, my firm visited with a prominent money manager in New York City.

At the time, we were trying to raise money to invest in less‐than‐investment‐grade corporate debt. We attended the meeting and, to put it politely, we were given the brush off. That was no big deal – it happened all the time.

But what that money manager said struck us as very odd…

"Why should I give you guys money?" he asked. "You can't make me one point a month like my friend can."

We responded, "It's not a 'point‐a‐month' world." And that was that.

Several years later, in 2005, we were sitting in front of another group that said it was interested in raising money for us.

The talks proceeded to the point where we were invited to meet with the company's founder and his top lieutenants.

These gentlemen explained they were looking for another product to add to the offering of their "winningest" manager, who was producing "consistent monthly returns in the 80 to 100 basis-point range."

That they were looking for a new product wasn't unusual. But the manager's purported returns sure as hell were. Stranger still, they wouldn't name the manager. The guy's identity was treated like a national security secret.

What's more, these gentlemen stressed repeatedly that they could not consider a strategy that might potentially expose them to losses of as much as 2% a month. Of course, we told them it would be impossible to guarantee that there would never be monthly losses.

Needless to say, the talks went nowhere.

In 2008, barely three years after that bizarre, fruitless meeting, the "winningest" manager with the top-secret name was in handcuffs, perp-walked across every television and front page in the Western world.

We'd had a brush, of the faintest kind, with Bernie Madoff.

Because of simple common sense – the certain knowledge that it's not "a point-a-month world," and a grasp of the fact that any investment can lose money – neither we nor our clients were ever in danger from the con man's massive fraud.

But the same can't be said of Madoff's 4,800 victims, of course, who lost close to $65 billion. On top of the financial ruin, at least two people killed themselves as a result of the Ponzi scheme, including Madoff's own son.

Now here's the really horrible thing: You might think the book is closed on Bernie Madoff. But the story didn't end when they slammed the cell door shut on him at the Federal hoosegow at FCC Butner.

Federal Prisoner No. 61727-054, and every single money manager unwittingly "infected" by him, are still costing unsuspecting investors millions of dollars.

Let me show you why that's the case, and what you can do to make sure you're not among the next set of victims...

Wall Street

Why the DOJ Finally Nabbed These Big Bad Bankers

The DOJ is suddenly arresting big bank executives for currency manipulation.

They should've done this years ago.

Here's why they're just doing it now...

Wall Street

This WSJ Advice Will Clean Out Your Bank Account

Michael Lewitt warns that much of the advice published by financial media will clean out your bank account.

Learn more here - before you lose your savings...


Technology Is Your "Workaround" for Wall Street's Rigged System

Technology is the key to wealth these days – and this subsector in particular is going to drive economic growth (and stock prices) for the next three years – at least.

In fact, the nation's leading CEOs consider this market their top tech priority today...

Wall Street

How to Beat Wall Street at Its Own Game – July 2016

Most investors believe that Wall Street is rigged in favor of the big traders and that they'll never win.

But you can beat the Street - it all comes down to understanding a principle called "Gambler's Ruin." Here's what you need to know...

Wall Street

Top Chipotle Exec and FOX Producer Just Busted in Wall Street Drug Ring

Yesterday, a top Chipotle exec was arrested amid a huge cocaine bust in NYC.

But he wasn't alone; there were other corporate fliers caught in the scandal...