Easy = True – The Boston Globe

Easy = True – The Boston Globe

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UPDATE: Shareholder’s Blues

The SEC and BAC/ML have come back to the table with a $150M settlement, plus changes in corporate governance. The $150M settlement would be put in a fund and paid out to shareholders as compensation. There is either extreme cynicism or innocence when Judge Rakoff asks, “Why should shareholders pay shareholders? There’s a circularity, at least in part, to this proposal.” Good question. Well, Judge, we all know that if they didn’t put the $150M aside, it would go to employee compensation. Even still, I’m not so sure everyone will appreciate the special $0.002 dividend (I guess it is better than being dilutive?)

Shareholder Blues

Headlines have been reporting the civil charges brought against Bank of America executives for their Merrill Lynch purchase. The story is that they did not fully disclose to shareholders the extent of losses at the investment bank before the shareholders voted on the purchase. I truly feel back for shareholders of public companies. The misalignment of incentives between shareholders and managers is stark; and the information asymmetry between shareholders and insiders is difficult to overcome.

Late Night TV and Morality

I have a habit of watching old TV-series before bed and my latest project is Criminal Minds.  The show is entertaining, although a little repetitive.  But, it fits in just enough pseudo-intellectual ideas to stay engaging.

On the episode I watched last night, a neuroscientist, James Fallon kicks off the program by explaining his theory on the mind of a psychopath.  Dr. Fallon claims that he has identified certain physiological changes that occur in the womb that deaden certain areas of the brain.