Bruno Fagali has recently posted an article on his blog regarding one of the largest rewards given by the SEC to whistleblowers. Two rewards were granted by the Securities and Exchange Commision to two people who reported and helped proves serious financial irregularities that were committed by Bank of America. Read more about Fagali on Crunchbase.
Three individual reports were made about Bank of America’s illegal financial activity. It turned out that only two of the reports made consisted of serious financial violations that were initiated by wealth management company Merril Lynch, and the activity continued after Merril Lynch purchased Bank of America.
Fagali reports that the first violation committed by Bank of America was using account holders money for secret and risky transactions. The SEC found that Bank of America used five million dollars of its account holders money from 2009-2012. The five million dollars generated fifty million dollars in profit for the bank. Bank of America consciously put account holders assets at risk for their own profit instead of protecting those assets.
Fagali reports that the second violation committed by Bank of America was to place account holders money in secret accounts that were placed in compensation burdens. For six years fifty-eight billion of account holders money was placed in reserve. This money could have been subject to claims of bank creditors, and at the time it was feasible to believe that the bank may have had to file for bankruptcy.
Fagali’s blogs clearly state that these actions violate Bank of America’s responsibility for consumer protection. Instead of complying with its legal duty to protect their account holders assets Bank of America put fifty-eight million dollars of their account holders assets at risk. Though the bank’s actions did not result in any losses to the account holder the bank is still liable for its actions. Learn more: http://fagali.jusbrasil.com.br/
Jeremy Goldstein runs his own law firm in New York called Jeremy L. Goldstein & Associates LLC. His law firm consists of experts in business law who assist companies, CEOs, and private clients on sensitive situations and other issues. Goldstein is considered an expert in the field of mergers & acquisitions.
Goldstein serves for the American Bar Association as the chair of their Mergers & Acquisition Subcommittee. His expertise in M&A(Mergers & Acquisitions) has led him to working with several of the biggest M&A deals in recent memory. Goldstein is partially or entirely responsible for the merger of several of the biggest companies in the world. Goldstein has worked with companies such as Verizon, ALLTEL, Goldman Sachs and The Dow Chemical Company.
Goldstein also enjoys sharing his thoughts on a variety of subjects in the form of informative articles. Recently he shared some great advice with company leaders concerning stock options.
Goldstein explained that he is shocked by employer’s decision to end the offering of stock options to employees. Goldstein goes on to explain a new method of stock offerings that offer far more advantages than traditional stock options. This method is called knock-out options.
There are several disadvantages to keep in mind before you offer stock options though. You must be confident of your company’s growth potential. If your company isn’t doing great, then your employees may become less motivated; if your company is continuously growing, then your employees may experience a growth in morale and begin to work harder.
Sometimes employees simply don’t trust stock options as a payment method. Employees know what a recession can do to the stock market, sometimes over night. It may be a hard sale to convince employees to accept stock options instead of cold, hard cash.
Knock-out options can eliminate much of the worry on the employee side though. A knock-out option is a stock that is capped at a certain level. This type of stock may provide limited growth but it also provides a clear exit strategy for employees. Employees know that once the price of a stock hits a certain price it is time to sell. Knock-out options can also work to eliminate the necessity of personal stock advisers, which would be hired out of pocket by employees. Sometimes these advisers charge more than the profit you’ll make on stocks.
Knock-out stock options are a great way to offer stock options to employees. This is an option for employers that wish to offer alternative compensation methods without worrying or confusing their workers. Learn more: http://www.bizjournals.com/newyork/potmsearch/detail/submission/6423046