Archive for October 24th, 2004

Spitzer Probes Insurance Industry …

The Wall Street Journal has noted that New York Attorney General Eliot Spitzer’s investigation into kickbacks and other improper incentives in the insurance industry is widening and moving toward the area of employee-benefits. Since there are real problems with the proper exercise of fiduciary responsibility for 401(k) plans, there could be long-term implications for capital […]

Representative Barney Frank Moves Against Stock Options …

Representative Barney Frank has proposed an amendment to the Sarbanes-Oxley Act that would require corporate executives to repay gains from stock options if the value of company stock declines by a “material amount” within one year of options being exercised. Although not going to the heart of the options/buyback schemes that have distorted equity markets over […]

Corporate Governance: The Great Misleading Continues …

The Financial Accounting Standards Board (FASB) has postponed the implementation of compulsory expensing of stock options for six months, until June 15, 2020. For details, see the article on the FASB web site. Considering the record levels of corporate stock buybacks in the second quarter of 2004 ($159.5 billion, net), it appears that the Great […]

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