Is Bankruptcy The Light At The End Of Your Tunnel?

Is Bankruptcy The Light At The End Of Your Tunnel?

Many things can happen in life that can cause personal financial strain. It can be brought on by poor decisions, loss of income or even, a death in the family. No matter More »

How To Pick The Best Personal Bankruptcy Lawyer To Help Your Case

How To Pick The Best Personal Bankruptcy Lawyer To Help Your Case

Personal bankruptcy can be a scary situation for those who are facing repossession from the government and constant calls from debt collectors. If you find yourself in a hole that you cannot More »

Bankruptcy: What Are My Options And Limitations?

Bankruptcy: What Are My Options And Limitations?

Even though filing for personal bankruptcy can seem like something to put off, you should not wait too long to do it. Know what you are about to go through and then More »

Why Personal Bankruptcy Is The Best Option For Some People

Why Personal Bankruptcy Is The Best Option For Some People

Looking into bankruptcy can be like looking into a murky sea. With so many laws and regulations, how do you know what steps to take so you can file for bankruptcy and More »

 

Ex-Wells Fargo CEO John Stumpf misled investors on metric tied to fake accounts scandal, SEC says

John Stumpf, chief executive officer of Wells Fargo & Co., waits to begin a House Financial Services Committee hearing in Washington, D.C., U.S., on Thursday, Sept. 29, 2016.
Andrew Harrer | Bloomberg | Getty Images

Ex-Wells Fargo CEO John Stumpf and his former deputy Carrie Tolstedt were charged by the Securities and Exchange Commission Thursday for allegedly misleading investors about the bank’s success in selling multiple products to customers.

The bank’s two former leaders certified investor disclosures in 2015 and 2016 that touted the firm’s supposedly robust “cross-sell” metric, an industry term for how many products a single customer has, despite knowing that the metric was misleading, the SEC said in a statement.

Wells Fargo was later found to have inflated that metric by putting millions of customers into products without their consent, a scandal that cost Stumpf his job in 2016 and even that of his successor Tim Sloan. Current CEO Charlie Scharf took over a year ago and has been tasked with overhauling the fourth biggest U.S. bank and satisfying regulators’ demands for better controls.

“If executives speak about a key performance metric to promote their business, they must do so fully and accurately,” Stephanie Avakian, director of the SEC’s Division of Enforcement, said in the statement.

Stumpf agreed to pay a $2.5 million civil penalty to resolve the matter, and that allowed him to avoid admitting or denying the SEC’s charges. Meanwhile, the SEC’s complaint, filed in California, charges Tolstedt with fraud and seeks penalties and to ban her from being a public company’s officer or director.

According to the SEC’s complaint against her, Tolstedt publicly endorsed the firm’s vaunted cross-sell metric from 2014 through 2016, despite the fact that it was “inflated by accounts and services that were unused, unneeded, or unauthorized.”

Earlier this year, Wells Fargo paid $3 billion to settle a swath of U.S. probes into its operations, including a $500 million deal with the SEC. The regulator said it will distribute money collected from Stumpf and the bank to investors.

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Author: Hugh Son

Dow rises 200 points, heads for winning week

U.S. stocks moved higher on Friday morning as investors bet again on stocks that would benefit from a potential effective vaccine and economic recovery next year.

Shares of Disney gained 4% in after reporting better-than-expected results. Shares of Carnival Corp., United Airlines and Boeing rose in early trading, capping big gains for the week.

The Dow Jones Industrial Average traded 230 points, or 0.8%, higher. The S&P 500 gained 0.7%, while the techy-heavy Nasdaq Composite rose 0.7%.

“This week’s positive vaccine news is a game-changer in our view, as it allows the market to look through the recent surge in COVID-19 cases to the impending end of the pandemic and broader reopening of the economy,” wrote Marko Kolanovic, JPMorgan’s head of macro quantitative and derivatives strategy, who was among the first to call the market’s turn in March.

The Dow entered Friday’s session up 2.7% for the week after Pfizer’s news on Monday that the vaccine it is developing with BioNTech was more than 90% effective in a trial. This caused a rotation into the cyclical stocks that would benefit from an economic comeback next year. Investors dumped technology shares which have held up during the pandemic.

However, mid-week the rotation paused as traders worried that a rising number of coronavirus cases could hit the economy significantly before a vaccine gets here.

On Thursday, the Dow dropped more than 300 points during the regular session, notching its second straight daily decline. The broader S&P 500 pulled back 1%, leaving it just 0.8% higher for the week. The Nasdaq Composite is down 1.6% for the week.

The pause in the rally this week came as the number of coronavirus cases, and hospitalizations, keeps climbing in the U.S. A CNBC analysis of data compiled by Johns Hopkins University showed average daily new cases are up by at least 5% over the past week in at least 47 states. Hospitalizations, meanwhile, rising in at least 46 states.

Sentiment on Thursday soured even further after Federal Reserve Chairman Jerome Powell said the country’s economic outlook remained uncertain. “With the virus spreading, the next few months could be challenging,” he said.

The resurgence in coronavirus cases has also led some parts of the country to re-adopt stricter social-distancing measures. In Chicago, Mayor Lori Lightfoot asked residents to cancel their Thanksgiving plans and stay indoors as cases rise in the city. In New York state, Gov. Andrew Cuomo said new curfews on bars, restaurants and gyms will take effect on Friday.

Phillip Colmar, partner at MRB Partners, wrote in a note that the global economic recovery “will be sustained, but the V-shaped portion is over, and we have already transitioned to a slower pace of two-steps forward and one back.”

Disney, Cisco jump on earnings

Shares of Dow members Disney and Cisco rose sharply in after-hours trading after both companies reported quarterly results that beat analyst expectations.

Disney gained as the company said it now has 73 million paid subscribers for its streaming service, Disney+. The media giant also reported a smaller-than-expected loss for the quarter.

Cisco popped more than 6% on the back of strong earnings and revenue. The company also issued better-than-expected guidance for the current quarter.

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Author: Fred Imbert

Stocks making the biggest moves premarket: DraftKings, Disney, Cisco, others

Check out the companies making headlines before the bell:

DraftKings (DKNG) – The mobile betting service reported a quarterly loss of 57 cents per share, smaller than the 61-cent loss that Wall Street had anticipated, while revenue was above analyst forecasts. DraftKings said it was helped by the resumption of activity by major sports leagues during the third quarter, as well as the start of the NFL season. It increased its current quarter guidance and is projecting 45% year-over-year revenue growth for 2021. The shares jumped 8% in premarket trading as of 7:35 a.m. ET.

Walt Disney (DIS) – Walt Disney reported an adjusted quarterly loss of 20 cents per share, smaller than the 71-cent loss projected by Wall Street analysts. Revenue came in above forecasts, as theme parks began recovering from shutdowns and signups for the Disney+ service continue to rise. Disney also said it would forego its January dividend payment, but still expects to pay the dividend in the future. The shares gained 3.9% in premarket trading as of 7:35 a.m. ET.

Cisco Systems (CSCO) – Cisco beat estimates by 6 cents with an adjusted quarterly profit of 76 cents per share and the networking equipment maker’s revenue also beat estimates. Demand for Cisco’s products continues to get a boost from the increase in the number of people working from home. The stock added 7% in premarket trading as of 7:35 a.m. ET.

Palantir Technologies (PLTR) – Palantir earned an adjusted 9 cents per share for its latest quarter, compared to a 2-cent consensus estimate, while revenue also came in above Wall Street forecasts. The data analytics firm also raised its 2020 revenue forecast, after signing 15 new contracts during the third quarter.

Applied Materials (AMAT) – Applied Materials came in 8 cents above estimates with an adjusted quarterly profit of $1.25 per share and the semiconductor manufacturing equipment maker’s revenue beat estimates as well. The company also issued an upbeat current-quarter outlook. The shares gained 2.7% in premarket trading as of 7:35 a.m. ET.

Unity Software (U) – Unity lost 97 cents per share for its latest quarter, wider than the 15-cent loss that analysts were expecting, although the maker of video gaming software did report better-than-expected revenue. Unity, which went public in September, said it planned to expand into other markets like industrial, automotive and entertainment.

Farfetch (FTCH) – Farfetch reported an adjusted third-quarter loss of 17 cents per share, smaller than the 40-cent loss that analysts had been anticipating. The online seller of luxury fashion goods also saw revenue come in well above estimates. The shares jumped 14% in premarket trading as of 7:35 a.m. ET.

Autodesk (ADSK) – Autodesk said financial results for its third quarter will come in above its prior guidance, with the design software company also said it remained confident in its long term financial goals. Autodesk also announced that Chief Financial Officer Scott Herren is leaving to take the CFO spot at Cisco Systems.

Utz Brands (UTZ) – The snack maker was upgraded to “overweight” from “neutral” at Piper Sandler, which cited a number of positive factors including its focus on the growing salty snacks category and the company’s purchase this week of the On The Border tortilla chip brand.

Revlon (REV) – The cosmetics maker’s shares are under pressure after it reported a third-straight quarterly loss and a 20% sales decline. Revlon said Covid-19 continues to impact its business, but did note that its sales decline slowed compared with the prior quarter.

Spectrum Brands (SPB) – The household products company reported adjusted quarterly earnings of $1.72 per share, beating the consensus estimate of $1.24, with revenue beating forecasts as well. Spectrum said it was helped by a recovery from COVID-19 related supply chain disruptions.

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Author: Peter Schacknow

Stock futures rise as traders weigh virus resurgence and its impact on the economy

Traders work the floor of the New York Stock Exchange.
NYSE

U.S. stock futures rose on Thursday night as Wall Street continues to grapple with the rising number of coronavirus cases and its potential economic impact.

Dow Jones Industrial Average futures traded 56 points higher, or 0.2%. The S&P 500 dipped 0.2% and Nasdaq 100 futures declined 0.3%.

Earlier on Thursday, the Dow dropped more than 300 points during the regular session, notching its second straight daily decline. The S&P 500 pulled back 1%, leaving it just 0.8% higher for the week after surging on Monday amid positive vaccine news.

Those losses came as the number of coronavirus cases, and hospitalizations, keeps climbing in the U.S. A CNBC analysis of data compiled by Johns Hopkins University showed average daily new cases are up by at least 5% over the past week in at least 47 states. Hospitalizations, meanwhile, rising in at least 46 states.

Sentiment on Thursday soured even further after Federal Reserve Chairman Jerome Powell said the country’s economic outlook remained uncertain. “With the virus spreading, the next few months could be challenging,” he said.

The resurgence in coronavirus cases has also led some parts of the country to re-adopt stricter social-distancing measures. In Chicago, Mayor Lori Lightfoot asked residents to cancel their Thanksgiving plans and stay indoors as cases rise in the city. In New York state, Gov. Andrew Cuomo said new curfews on bars, restaurants and gyms will take effect on Friday.

Phillip Colmar, partner at MRB Partners, said wrote in a note that the global economic recovery “will be sustained, but the V-shaped portion is over, and we have already transitioned to a slower pace of two-steps forward and one back.”

Disney, Cisco jump on earnings

Shares of Dow members Disney and Cisco rose sharply in after-hours trading after both companies reported quarterly results that beat analyst expectations.

Disney traded more than 3% higher after the bell as the company said it now has 73 million paid subscribers for its streaming service, Disney+. The media giant also reported a smaller-than-expected loss for the quarter.

Cisco popped more than 6% on the back of strong earnings and revenue. The company also issued better-than-expected guidance for the current quarter.

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Author: Fred Imbert