Trust Digest 95 (May 5, 2015)


SEC Is Set to Propose New Rules on Executive Compensation
Securities regulators want publicly traded companies to make it easier for shareholders to determine whether top executives’ compensation is aligned with the firm’s financial performance. On Wednesday, the Securities and Exchange Commission is set to propose long-awaited rules that would force thousands of companies to tell investors how the pay of top management tracked the firm’s financial results.
Key Words: SEC, Regulation, Executive Compensation
Trust Issues: Alignment of Interests, Level of Communication


GOLDMAN: Record financial engineering will goose stocks
GE, in order to paper over a net loss of $13.6 billion and declining revenues in the first quarter, said on April 10 that it would buy back $50 billion of its own shares. That’s on top of the $10.8 billion in actual buybacks last year. The announcement was beat only by Apple’s $90 billion announcement last year, to which it added another $50 billion on Monday.
Key Words: Goldman Sachs, GE, Financial Engineering, Innovation Risk
Trust Issues: Predictability and Integrity, Benevolent Concern


Wall Street Pushes Back on Foreign Bribery Probe
Wall Street banks are embroiled in an intense dispute with the U.S. government over its “aggressive” interpretation of foreign-bribery laws, a flurry of legal wrangling in a probe with broad implications for how corporations do business overseas, according to people familiar with the matter.
Key Words: Wall Street, Foreign Anti-bribery Laws
Trust Issues: Predictability and Integrity, Alignment of Interests


Think Bridgegate Was Bad? The Port Authority Is a Daily Disaster
Bridgegate stinks like dead fish at the Jersey Shore. The four days of lane closings on a ramp to the George Washington Bridge in Fort Lee, N.J., in September 2013 delayed EMS crews, commuters, and children going to school. Investigators allege that New Jersey Governor Chris Christie’s deputy chief of staff ordered the bottleneck to punish the Democratic mayor of Fort Lee for not supporting the reelection of the Republican governor. "Is it wrong that I am smiling?" the aide, Bridget Anne Kelly, wrote in a text message. “No,” answered a Port Authority executive and Christie ally, David Wildstein.
Key Words: Bridgegate, Port Authority
Trust Issues: Predictability and Integrity, Relative Power, Accountability, Benevolent Concern


Criminal Charges Expected Against N.Y. State Senate Leader
Federal prosecutors are expected to announce criminal charges against New York state Senate Majority Leader Dean Skelos imminently, possibly as soon as Monday, in connection with a continuing corruption investigation, according to a person familiar with the matter.
Key Words: NY Senator, Corruption
Trust Issues: Relative Power, Integrity


Americans Trapped by Yemen Fight
Loud explosions and plumes of smoke not far from his father’s house in Yemen about a month ago announced to Talal Hameed that Saudi Arabia’s air bombing campaign had begun. That was the cue for the 32-year-old American and his wife to leave. But the U.S. government didn’t evacuate them, he said, deeming the mission too risky.
Key Words: US Citizens, Yemen
Trust Issues: Benevolent Concern, Predictability and Integrity


Former CIA official cites agency’s failure to see al-Qaeda’s rebound
U.S. intelligence agencies ­badly misjudged al-Qaeda’s ­ability to take advantage of political turmoil in the Middle East and regain strength across the region after Osama bin Laden was killed, according to a new book by the CIA’s former deputy director.
Key Words: CIA Intelligence, al-Qaeda
Trust Issues: Capability, Accountability


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