Professor Elam

Nikola Jumps 15% today

Wed Sept  30 2020

Nikola share price jumps today despite CEO resignation.

 

Gee do you suppose GM bought a large number of shares to boost the price and make their decision look better?

FEDs to J P Morgan Stand and Deliver $920 M fine

Tuesday Sept  29 2020

J P Morgan admits 15 traders are guilty of spoofing.

Over eight years, 15 traders at the biggest U.S. bank caused losses of more than $300 million to other participants in precious metals and Treasury markets, according to court filings on Tuesday. JPMorgan admitted responsibility for the traders’ actions. The Justice Department filed two counts of wire fraud against the bank’s parent company but agreed to defer prosecution related to the charges, under a three-year deal that requires the bank to report its remediation and compliance efforts to the government.

 

Professor Elam comment

 

Where were the internal auditors?

 

Where were the external auditors?

 

15 Years of this surely resulted in outsized dept profits, did Jamie Dimon not notice?

Why is Jamie Dimon worth  $247 M a year if he never notiiced this, I mean I will take the job for  $20 M a year saving $7 M and not notice just as well!

What A Tangled Web We Weave When we are Twice Divorced and Convicted of 11 Felonies

Monday Sept  28 2020

The best received presentation I have done for professional accounting groups in San Antonio regards the Carlos Uresti Fraud involving Four Winds Logistics.

He received 11 felony convictions for his involvements as well as a $6.3 M restitution requirement.

As a State Senator he earned a retirement payment Now the second wife and the Federal Government are arguing over the split.

Eventually Judge Ezra Dyer who presided over the case will make the decision.

Senator Uresti lost his Senate seat, whatever wealth he had accumulated,  his law license and practice, his second wife, and gained a sentence lasting until 2029.

Trevor Milton's Fall From Grace at Nikola

Monday Sept 28 2020

Milton Trevor has a checkered past with varoius start ups.

GM claims it did due diligence on its involvement but that does not appear to be the case.

This story reminds me of Barry Minkow, another big promoter at an early age.

J P Morgan Chase

Weekend Sept 26 2020

In ACCT 5308 today I thought someone said that J P Morgan rescued Chase during the  2008 financial crisis.

However Chase merged with Morgan in Year 2000. Mergers are an inclusive activity.  Hence most mergers happen again during expansive social mood at market tops. This occurred right at the 1982-2000 market bull run.

https://en.wikipedia.org/wiki/JPMorgan_Chase

As of 2019, the asset management arm of the bank has US$2.988 trillion in assets under management, while its investment and corporate bank arm holds US$25.45 trillion in assets under custody.^[10] At US$45.0 billion in assets under management, the hedge fund unit of JPMorgan Chase is the third largest hedge fund in the world.^[11]

Good grief, look at the list of fines and penalties since Enron. Talk about Too Big to Fail!

• 8 Controversies
  • 8.1 Conflicts of interest on investment research
  • 8.2 Enron
  • 8.3 WorldCom
  • 8.4 Jefferson County, Alabama
  • 8.5 Failure to comply with client money rules in the UK
  • 8.6 Mortgage overcharge of active military personnel
  • 8.7 Truth in Lending Act litigation
  • 8.8 Alleged manipulation of energy market
  • 8.9 Criminal investigation into obstruction of justice
  • 8.10 Sanctions violations
  • 8.11 National Mortgage Settlement
  • 8.12 Speculative trading
  • 8.13 Mortgage-backed securities sales
  • 8.14 "Sons and Daughters" hiring program
  • 8.15 Madoff fraud
  • 8.16 Corruption investigation in Asia
  • 8.17 September 2014 cyber-attack
  • 8.18 Alleged discrimination lawsuit
  • 8.19 Improper handling of ADRs
  • 8.20 Investments in coal, oil and gas projects
  • 8.21 Leaked study on climate change impacts
  • 8.22 Paying Lip Service
• 9 Offices

Let's Misbehave

Weekend Sept  26 2020

In ACCT 5308 we are reading about frauds and scandals at

Ernst and Young, three n less

accused fraud at Nikola via Hindenburg Research

Rio Tinto CEO resigns over exploding historic site

J P Morgan to pay $1 billion fine

Frauds and excessive hype occur at market tops which is precisely where we are now.  And this mood recurs over different time periods, times change but unremembered social mood does not.

consider the song, Let's Misbehave, take a guess when it was written and recorded.

"Let's Misbehave" is a song written by Cole Porter in 1927, originally intended for the female lead of his first major production, Paris. It was discarded before the Broadway opening in favor of "Let's Do It, Let's Fall in Love". However, the star of the Broadway production, Irene Bordoni, performed it for a phonograph recording which was labelled as being from the production of Paris.

The song with partial lyrics was a notable 1928 hit for Irving Aaronson and his Commanders. The song was recorded earlier with partial lyrics for the Brunswick label by Scrappy Lambert and Billy Hillpot with Ben Bernie's orchestra in December 1927, and by Tom Stacks with Harry Reser's band "The Bluebirds" in January 1928. Banjo Buddy's (a.k.a. Harold Sandelman) recording in April 1928 contained full lyrics and verse. ^[1] It was included perhaps most infamously in the 1962 revival of Anything Goes. It was also added into the 1991 version of Porter's You Never Know (musical).

contrast these lyrics near top of the market in  the Roaring 20s with the far more constrained Victorian era of the  15890s

We're all alone
No chaperon
Can get our number
The world's in slumber
Let's misbehave!

There's something wild
About you, child
That's so contagious
Let's be outrageous
Let's misbehave!

When Adam won Eve's hand
He wouldn't stand
For teasin'
He didn't care about
Those apples out of season!

They say the Spring
Means just one thing
To little lovebirds;
We're not above birds
Let's misbehave!

Let's misbehave!
Let's misbehave!

Neiman Marcus Emerges from Bankruptcy

Friday Sept 25 2020

 

https://finance.yahoo.com/news/neiman-marcus-emerges-bankruptcy-173932839.html

 

Chapter 11 BK is a restructuring so the company can emerge and do business again. typically the stockholders get nothing, the bondholders are not paid but become the new stockholders. Neiman was taken by a hedge fund which did the typical thing, strip out the cash, and replace with debt, hello BK

This would never have happened when Stanley Marcus ran the company.

https://en.wikipedia.org/wiki/Stanley_Marcus

 

He authored a book reflectingon the experience named Minding the Store

https://www.amazon.com/s?k=minding+the+store+stanley+marcus&i=stripbooks&crid=A2LT6HNW3ITB&sprefix=mindiung+the+store%2Caps%2C216&ref=nb_sb_ss_sc_1_18

 

 

Bond's Biggest Assignment Yet

Friday  Sept 25 2020

Regal Cinema theaters have been closed for months. And now the British owned chain is turning to the one man who just might be able to rescue the chain from oblivion, calling James Bond

 

In the original series Bond was always paired off against a super villain.  Now he takes on the biggest villain of all, the aftermath of the covid 19 virus.

 

He's need the Beretta, the Aston Martin, and for sure all the Bond girls he can muster. It has been the longest ever between Bond films, five years. Will social mood in the aftermath of the election be enough to drive folks to the theater, we shall see!

 

That's right it's

 

No Time to Die, The Regal Casino has put all the chips on the roulette wheel one number in a bet to stay alive, yep

 

007

 

No Time To Die: New Bond Movie's Release Date Set For November

 

 

J P Morgan Chase to Pay $1 Billion Fine for Spoofing

Wed Sept  23 2020

What Does It Take to Get Kicked out of this Club anyway

 

Wanda Sykes on the Catholic Priest Scandal

JP  Morgan Chase to pay one billion dollar fine.

Spoofing consists of placing orders that will not be filled to convince the market of an upcoming move. But when not filled, those entering the orders go  the other way.

 

In 2015, JPMorgan was among firms accused of manipulating currencies. It pleaded guilty to an antitrust charge and paid a $550 million fine to the Justice Department. The bank also paid penalties to U.S. regulators.

The TBTF parade continues.

Oh CEO Jamie Dimon has a salary of $27 Million and a net worth of $1.6 Billion

 

https://www.celebritynetworth.com/richest-businessmen/ceos/jamie-dimon-net-worth/

But then you and I have not defrauded anyone, proud of us ?????

This is an outrage.

 

Careful What you Say

Wed Sept 23 2020

Former CEO Trevor Milton may have said way too much on the record.

Read this article to understand the  difference in a used car salesman puffing a previously owned model

 

And how the SEC  views statements about a public company made on the record. Hindenburg Research disputes claims made by Trevor.

The same can be said of statements by Trump and Biden, loose lips sink ships.