It’s not peanuts, it’s continuity

Multiple threads today.  But I will focus on one of my perennial favorites: SAC Capital Advisers.

Would you want to know that your broker’s portfolio manager had been kicked out of Harvard Law School for falsifying transcripts?  Does that go to his reputation in the community for truth and veracity?  If you’re on the jury deciding whether he engaged in insider trading?  Is it relevant or probative if he doesn’t testify in his criminal trial? Was he asked about this in his job interviews? Did SAC care?

“SAC Trial to Show School Expulsion,” Wall Street Journal, January 10, 2014 C3 http://on.wsj.com/1dCFn0z

Also in the news:

“Probe Focuses on Early Looks at Data,” Wall Street Journal, January 10, 2014 C3 http://on.wsj.com/KaC9cA Have analysts at brokerage firms gotten a pre-release look at market-moving data, through participation in “surveys”?

“Lenders Warned On Illicit Dealings,” Wall Street Journal, January 10, 2014 C1 http://on.wsj.com/KP5fQ2 Are banks doing enough to prevent money laundering?  What about processing accounts for Colorado sellers of marijuana?

“Alcoa Snared in Bahrain Bribery Case,” Wall Street Journal, January 10, 2014 B1 http://on.wsj.com/KaCEUb  Bog-standard Middle East bribery scandal.  But note, the bribes were inaccurately reported in the books and records (a separate violation) as commissions or sales to a distributor.

“A $4 Billion Surprise For 45-Person Biotech,” Wall Street Journal, January 10, 2014 B1 http://on.wsj.com/1gW32x7 Stock jumps nearly 300% following clinical drug trial.  Do we expect allegations of insider trading?

“Medtronic Device Misses Goal in Study,” Wall Street Journal, January 10, 2014 B3 http://on.wsj.com/1dCI6qA The flip side: what if the market learns your product doesn’t work that well?

“British Crack Down on Faux Scotch,” Wall Street Journal, January 10, 2014 B4 http://on.wsj.com/1aneUXo What makes Scotch “Scotch”? Protecting a country’s branding.

“Diamond Foods in SEC Fraud Settlement,”  Wall Street Journal, January 10, 2014 B4 http://on.wsj.com/1gW7snx I guess it’s bad to reclassify a portion of your purchase costs in one quarter to “continuity payments” in the next quarter, just to exceed market expectations.

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Filed under Business Case, Business Continuity, Compliance, Controls, Culture, Definition, Governance, Information, Internal controls, IT, Legal, Operations, Privacy, Requirements, Risk, Use, Value

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