Financial News 8/8/12 – Pfizer Scandal, Standard Chartered Money Scheme, Walt Disney Wows Wall St.

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

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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.

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