Corporate Governance

Obama revs up antitrust effort by blocking $3.1bn CSL deal

28 May 2009

The administration made clear its more vigorous approach to competition law. It even laid out targeted areas: health, tech, energy, and agriculture. The FTC s move to block the merger of two drug companies is the first taste of what s in store.

Santander inches towards closure on Madoff

27 May 2009

The Spanish bank is handing back $235m that it redeemed from the disgraced investment manager 90 days before his arrest. In doing so, it has made its peace with Madoff's litigious trustee. Others in the firing line won t find it easy to follow suit.

Expect classic EC fudge on aid for UK banks

20 May 2009

Lloyds has warned that the European Commission could force it into asset sales to satisfy stateaid rules. But the prospects of such a move are slim. The likelihood is that Europe will force those UK banks enjoying state support to do things they planned to do anyway.

After Shell, investors should pick harder fights

20 May 2009

The 59% vote against bonuses for Shell execs is a watershed moment for shareholder protest. But directors pay is typically a large, slowmoving target. Will emboldened holders now engage with management on more knotty strategic questions? That would be a much bigger revolution.

US investors don’t need a Shareholder Rights Act

18 May 2009

Many elements of the bill being introduced in the US Senate are laudable: say on pay, an end to staggered boards and separation of the CEO and chairman roles. But shareholders are already tackling these matters themselves. A blunt act of Congress is the wrong way to proceed.

Apologies without penance fall a little flat

14 May 2009

The heads of Allied Irish and Candover are the latest to say sorry unreservedly and immensely. No one can look into the hearts of disgraced bosses, but some regrets do seem tainted by psychobabble and spin. What is needed is better behaviour, to keep away future humble pies.

Wheels of justice could grind Countrywide’s boss

14 May 2009

Prosecuting financial crimes is difficult. US securities law is complex and open to interpretation; defendants have pricey lawyers. Of highprofile cases, only those that capture the public s anger tend to result in convictions. Countrywide s Angelo Mozilo might play this part.

Regulators further fetter Intel’s quasi-monopoly

13 May 2009

Dominance hasn t led to growth. Despite selling 80% of all microprocessors, Intel s revenues have expanded a mere 1% a year since 2000. Customers just aren t shelling out for new, faster chips. And more antitrust problems witness the EU s E1bn fine will add to its headaches.

Logic favours Jain as next Deutsche Bank CEO

1 May 2009

A lot can happen before Ackermann s new extension ends in 2013. But as it stands, Deutsche will want an insider with investment banking knowhow. Division cohead Anshu Jain looked to have an edge on counterpart Michael Cohrs before the crisis hit. It may be his job to lose.

BofA boss Lewis rightly stripped of chairman’s title

29 Apr 2009

Despite the parochial hoopla of the bank s AGM in Charlotte, a resolution to separate the chairman and CEO roles received enough support for the board to act. But naming a lifelong academic to oversee the domineering Lewis looks like a fig leaf.

Outcry at EU hedge fund rules is overdone

29 Apr 2009

Europe s proposals for regulating hedge funds and private equity firms sensibly focus on disclosure and give local regulators latitude in implementation. Plans for minimum capital requirements need more thought. But the blueprint is a reasonable starting point for debate.

SocGen’s Bouton yields to scapegoat status

29 Apr 2009

The French bank s longstanding chairman has quit, citing personal attacks on him since last year s Kerviel trading scandal. He made a few mistakes recently. But he seems to have realised that his position was untenable amid pervasive Boutonbashing endorsed by President Sarkozy.

Italian bond scandal threatens to run and run

28 Apr 2009

Italy could be brewing its biggest scandal since Parmalat. Prosecutors have reportedly seized assets from investment banks accusing them of misselling derivatives to local government. With E35bn of derivatives sold to municipalities, it s a worry for the banks and the state too.

BofA holders should withhold support for Ken Lewis

28 Apr 2009

The CEO s botched Merrill deal, which he s tried to pin on others, pummeled the firm s stock and prompted a double government bailout. And BofA may need more capital yet. The board has failed to act. Shareholders should take matters into their own hands at the AGM Wednesday.

It’s still Ken Lewis’s fault

23 Apr 2009

Hank Paulson made me do it is no excuse for the BofA boss s disastrous Merrill deal. Despite government pressure to proceed, he could have renegotiated the price once Merrill s losses became clear. Lewis s responsibility was to shareholders who should still show him the door.

Ex-RBS investment bank boss merits rough treatment

20 Apr 2009

Johnny Cameron presided over a financial calamity at his last job. Now the UK regulator has made it hard for him to take a new position at boutique Greenhill. The FSA s response strikes a chord. But with so many culprits around, it won t be easy to set a consistent policy.

Investors push back on hedge fund governance

20 Apr 2009

Steel Partners tried to force a potentially disadvantageous restructuring on investors. Warren Lichtenstein s firm has had to backtrack, offering investors alternative options. Whether it s enough remains to be seen. But the dynamic reflects investors' new power over hedge funds.

Hubris stalks Marchionne, Fiat’s star manager

16 Apr 2009

Fiat s boss has done a great job at the Italian carmaker. But he seems to want more. His latest suggestion: one man could run both Chrysler and Fiat. That sounds like too much for any manager. Marchionne may be the best around, but that doesn t qualify him for impossible tasks.

Who would want to run Fannie and Freddie?

14 Apr 2009

Talk about a thankless job. There s low pay, regulatory and legislative meddling and little scope for reform due to the focus on public policy goals. Neither US mortgage giant can currently survive as a private entity; their new bosses could be little more than custodians.

US curbs on egregious CEO pay still fragile

6 Apr 2009

Boards are cutting executive compensation slightly while referendums on pay are multiplying. Yet progress in giving investors more say could slip once the economy recovers. Changing broker voting rules in the US now would guard against that.