breaking news posts
FeedPosted Sep 14th 2009 5:00PM by Mark Fightmaster (RSS feed)
Filed under: Bank of America (BAC), Financial Crisis
Let's dive into the world of breaking news here, as the New York Attorney General's office has decided to mark the one-year anniversary of the financial meltdown by
preparing charges against some
Bank of America (NYSE:
BAC) executives. Reportedly, the charges stem from the failure to disclose details about the company's acquisition of Merrill Lynch.
The Attorney General (Andrew Cuomo) is likely to file charges against the executives because of their failure to alert shareholders to mounting losses and accelerated bonus payments at Merrill. Earlier, a federal district judge rejected a $33-million settlement between BAC and the SEC over the same executive bonuses. This settlement was in relation to the fact that BAC did not inform shareholders of an agreement to pay Merrill Lynch execs billions of dollars worth of bonuses, the deal was struck before BAC acquired Merrill.
Continue reading Bank of America execs facing charges
Posted Mar 22nd 2007 4:32PM by Sarah Gilbert (RSS feed)
Filed under: Top deals, The Blackstone Group, Raising money, Public or private?, Blackstone, IPO, 2007
The rumors were true! Today at the market's close,
Blackstone Group LP
filed with the SEC to raise up to $4 billion in an IPO. The S-1 is huge and full of all kinds of little juicy details that I'm sure we'll be analyzing in depth over the coming weeks. I can't wait to read the clause entitled "Firm Use of Our Founders' Private Aircraft."
However, until further examination, we can't answer the most important question asked earlier today:
how much does founder, chairman and CEO Stephen Schwarzman make? He and other important officers actually don't draw salaries or bonuses and are instead paid out cash distributions of the firm's investment gains each year. How much were they paid for 2006? That part is blank, in all likelihood because it hasn't yet been paid out for the year (although I'd be willing to lay odds the management team knows how much they made in 2006). Crafty! [
Update:
Deal Journal's Dana Cimilucca was sharper-eyed than I and found one nugget: following the offering, Schwarzman will draw a modest, Warren-Buffett-sized salary of $350,000. Our original question -- what does Schwarzman make today? -- is still unanswered.]
The huge potential amount of the IPO will certainly make for interesting philosophical discussions over the next few months. Oh, and we have one more question to answer: which banks lead the deal? Morgan Stanley and Citigroup are the guys with top billing; Merrill Lynch & Co, Credit Suisse, Lehman Brothers and Deustche Bank Securities round out the group making millions in fees on Blackstone's coming march to the public markets.
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