The Securities and Exchange Commission has taken a step toward curbing risk-taking at big Wall Street firms and reducing the influence of credit-rating agencies, two factors that contributed to the financial crisis. Get the full story »
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Exelon, ADM may be in Buffett’s sights
From Bloomberg News | Billionaire Warren Buffett said in his annual letter that wants to use his almost $40 billion pile of cash to pursue bigger acquisitions. That may put companies from Archer Daniels Midland Co. to General Dynamics Corp. and Exelon Corp. in his sights. Get the full story>>
Ex-Goldman director accused of insider trading
Former Goldman Sachs board member Rajat Gupta is being accused by regulators of passing along inside information about the bank to a prominent hedge fund manager.
Morningstar switches accounting firms
Morningstar Inc., a leading fund and investment research firm, switched accounting firms, according to a securities filing on Monday.
Chicago-based Morningstar said it dismissed Ernst & Young LLP and hired KPMG LLP effective on Feb. 28, 2011. Get the full story »
Citadel in big E*Trade sale, hits broker’s stock
E*Trade Corp.’s largest stakeholder, hedge fund Citadel, is moving to sell nearly 24 million shares in the U.S. online brokerage, sending E*Trade shares down 5.9 percent on Thursday.
A Citadel Investment Group affiliate launched an underwritten offering, set to close March 1, that would reduce the Chicago-based fund’s stake to about 18 percent of E*Trade, from about 27 percent currently, according to a regulatory filing late on Wednesday. Get the full story »
Average Wall Street bonus falls to $128,530
Wall Street workers may be feeling a little leaner. That’s because cash bonuses fell nearly 8 percent last year, according to New York State Comptroller Thomas DiNapoli. Bonuses paid to New York City workers in the financial securities industry fell to $20.8 billion in 2010. That’s a one-third drop in the bonus pool from 2007, before the financial crisis, DiNapoli said. Get the full story »
Illinois bonds sought after despite fiscal woes
Investors skimmed over Illinois’ well-known financial troubles to vie for a piece of a $3.7 billion taxable pension bond sale on Wednesday.
The state received $6.1 billion in orders from a record 128 investors, according to John Sinsheimer, the state’s capital markets director. Get the full story »
Packaging Corp. to raise quarterly dividend
Packaging Corp. of America on Tuesday said it plans to raise its quarterly dividend a third and bolstered its share repurchase program by $100 million.
The popularity of dividends and share buybacks have increase as companies seek to appeal to investors and tap cash piles they needn’t conserve as much in an improving economy.
Packaging Corp. said it will increase its quarterly dividend to 20 cents a share from 15 cents, costing roughly $5 million each quarter. The paper packaging company board also increased its repurchase authorization by $100 million, with the buybacks expected to come in the next year and a half. Get the full story »
Gold falls back to $1,400 as equity markets drop
Gold fell back toward $1,400 an ounce on Tuesday, breaking a six-session rally, as turmoil in Libya prompted bullion investors to take profits and as sharp losses in equities and other commodities markets prompted margin selling. Get the full story »
Pritzker Group buys control of Peco Pallet
From Crain’s Chicago Business | The Pritzker Group has acquired a controlling stake in Peco Pallet, a Yonkers, N.Y. company that supplies pallet rentals to grocers, discount retailers and warehouses. The Pritzker Group, which represents investment interests of Chicago’s Pritzker family, called Peco Pallet an “industry leader,” while David Lee, the CEO of Peco Pallet, said the acquisition would enable Peco to “continue expanding throughout North America.”
Recession still causing personal finance headaches
The Great Recession might be officially over, but that’s not helping Americans save money, and they’re growing increasingly worried about it, according to survey results released Tuesday.
The portion of people “very concerned” about the impact of the current recession on their personal finances rose from 43 percent last year to 49 percent this year, according to the survey commissioned by the American Savings Education Council and the “America Saves” campaign, with more than 1,000 participating groups.
“The recession clearly has not ended for millions of Americans,” said Stephen Brobeck, executive director of the Consumer Federation of America. High unemployment, consumer and mortgage debt, and the housing crisis help explain why savers haven’t made much progress. Get the full story »
Trustee: Citi shopped Madoff to other banks
Citigroup Inc. tried to pass its exposure to Bernard Madoff to other banks just months before his epic fraud was revealed, the Madoff trustee said in a lawsuit accusing a second major U.S. bank of unsavory dealings with the financier.
Trustee Irving Picard said red flags about Bernard L. Madoff Investment Securities LLC were apparent to Citi as early as 2005, according to court papers unsealed Monday. The lawsuit seeks $425 million from the bank. Get the full story »
Heidrick & Struggles Q4 profit misses Wall Steet
Chicago-based executive recruiter Heidrick & Struggles International posted a lower-than-expected quarterly profit, weighed down by higher payroll expenses and employee benefits.
The company, which competes with Korn/Ferry International, said it expects first-quarter revenue of $122-$128 million and $515-$545 million for the full year. Get the full story »
Private equity firm GTCR closes $3.25B fund
GTCR, one of Chicago’s biggest private equity firms, today announced the closing of its tenth buyout fund, with more than $3.25 billion of investor commitments.
The fund had an initial target of $3 billion.
“Fund X is the largest in our firm’s 30-year history, and one of our quickest to raise,” GTCR Principal Phil Canfield said in a statement. Get the full story »
