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One Response to “Financial News 8/8/12 – Pfizer Scandal, Standard Chartered Money Scheme, Walt Disney Wows Wall St.”

1. 

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   08. Aug, 2012

   Accusations have been swirling around Standard Chartered which has
   been accused by The New York State Department of Financial Services of
   working with the Iranian government to hide over 60,000 financial
   transactions, generating hundreds of millions of dollars over the past
   decade. As the dust begins to settle, many are beginning to wonder
   what this may mean for other associated custodian banks including Bank
   of New York Mellon, JP Morgan Chase and State Street Corporation.
   These banks heavily depend on broad networks of sub-custodians to
   provide large clients with economies of scale and reach. If these
   banks are in fact proven to be associated with the scheme it may leave
   clients looking elsewhere for their banking needs. Those not
   associated with Standard Charted could see a large influx of clients
   in the near future. HSBC, Deutsche Bank AG and Citigroup could be
   among the lucky beneficiaries of this sudden shift in clientele.

   The bribery case brought against Pfizer, under the Foreign Corrupt
   Practices Act, came to an end yesterday with a $60 million dollar
   settlement. The SEC and DOJ accused Pfizer of making prohibited
   payments to foreign officials and doctors to garner business and
   increased sales in China, Italy, Russia, Croatia and other European
   countries. In one of the more extreme cases, Pfizer employees in
   China created a ‘credit card’ like point program allowing doctors to
   rack up points by prescribing Pfizer medications. In turn, doctors
   could cash in their points for an array gifts and trips. As part of
   the accusation the SEC said that Pfizer employees were trying to
   conceal the payments by passing them off as travel, entertainment and
   marketing expenses. In a press release announcing the settlement, Amy
   Schulman, the executive vice president and general counsel for Pfizer
   said, “The actions which led to this resolution were disappointing,
   but the openness and speed with which Pfizer voluntarily disclosed and
   addressed them reflects our true culture.” As they say the first step
   to recovery is admitting you have a problem, You be the judge.

   After bombarding you with stories of corporate greed and bribery
   we turn to the self-proclaimed happiest place on earth. Walt Disney
   Company announced its earnings yesterday and beat Wall Street
   expectations. The company boasted a 31 percent rise in earnings,
   which can be attributed to increased spending at its theme parks and
   the recent release of “The Avengers.” Grossing more than $1.4 billion
   dollars worldwide, the big wigs over at Disney have already signed a
   deal for a sequel and a Marvel-based TV series for its television
   production division, ABC.