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60 Minutes Fries Wall Street / SEC / Justice Department ….. Sarbox Officially A Joke

Posted by AGORACOM at 12:04 AM on Monday, December 5th, 2011

(CBS News) Two whistleblowers offer a rare window into the root causes of the subprime mortgage meltdown. Eileen Foster, a former senior executive at Countrywide Financial, and Richard Bowen, a former vice president at Citigroup, tell Steve Kroft the companies ignored their repeated warnings about defective, even fraudulent mortgages. The result, experts say, was a cascading wave of mortgage defaults for which virtually no high-ranking Wall Street executives have been prosecuted.

I blankly stared at my keyboard thinking of ways to succinctly articulate my thoughts on this matter for 10 minutes. I couldn’t do it. Not without embarking on a 1,000 word rant.

All I can say is that Wall Street will burn. That isn’t anger. It isn’t vengeance. It is simply the clear path upon which Wall Street has set itself upon.

The full 60 Minutes page on this story can be found here.

The full 60 Minutes video can be found in the two clips below.

Posted in All Recent Posts, Foreclosuregate, OccupyWallStreet, SEC, Stock Scams, Wall Street Crooks | 2 Comments »

SEC Provides Guidance On Super 8-K’s

Posted by AGORACOM at 11:57 PM on Tuesday, October 11th, 2011

(Via Richardson & Patel Newsletter)

SEC PROVIDES GUIDANCE ON SUPER 8-K’S

In 2005, the SEC adopted a rule that required the filing of what is an equivalent to a public offering prospectus for a merger with a public reporting shell company. In recent months the SEC has taken to reviewing these transactions and issued advice based on these reviews.

The SEC has reiterated that virtually any acquisition, including by lease, merger or exchange, triggers the obligation to file a Super 8-K. Issuers were also reminded that Item 9.01(b) of Form 8-K requires pro forma financial information to be included, not just the financial statements of the acquired company. Additionally, any exhibits, including those representing material contracts, have to be in English. Clear disclosure of holding company and control arrangements, as well as a detailed description of both current and planned business going forward is also required. Lastly, if risk factors are included, they must be tailored specifically to the company.

The SEC also offered guidance pertaining to the involvement of officers in the company. If officers are not spending full time in the business, they should be specific about the time they do devote. It is also important to include a summary compensation table for the acquired company’s most recent fiscal year. In disclosing affiliate and related transactions, a two year look back prior to the public company’s latest fiscal year is required in describing the standards used to determine director independence

Richardson & Patel, LLP | 10900 Wilshire Blvd | Suite 500 | Los Angeles | CA | 90024

Posted in All Recent Posts, SEC, Small-Cap CEO Lessons | Comments Off