Category Archives: Investor relations

What’s worse than a tweet?

“FBI Probes Tesla Over Production Figures,” The Wall Street Journal, October 27, 2018 A1.  FBI conducts a criminal investigation into whether Tesla knowingly overstated anticipated production figures and thereby misled investors.

What if Tesla knew at the time that it couldn’t and wouldn’t meet the production targets it was then continuously providing the market?  When does mere puffery become criminal?  What controls would you need to have to prevent this at your company?

Do you have them?  Are they enforced?

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Filed under Accuracy, Collect, Communicate, Communications, Compliance, Compliance, Compliance (General), Controls, Corporation, Culture, Data quality, Duty, Duty of Care, Governance, Internal controls, Investor relations, Management, Oversight, To report

Management moves

No indication that this is Compliance-related; may just have been a personality conflict, or the continued shuffling of chairs under the new CEO.  But it certainly goes to Governance, which is at least tangentially related to information governance.

“Deutsche Bank Dismisses an Executive,” The Wall Street Journal, October 26, 2018 B10.  Bank dismisses its asset-management chief.

This may be just normal comings and goings.  But when a company dismisses/fires a member of its management board, it makes the news (probably has to be disclosed to the market especially since the guy handled the public offering of a major unit).  Especially when the company had fired its CEO earlier this year.

How is the rest of governance going there?  How’s the culture?  Is there a higher scrutiny of the bank this year?  On a whole host of issues?

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Filed under Communications, Culture, Governance, Investor relations

Hackers look to make money

That’s a catchy headline.

“Facebook Thinks Hack Was Set by Spammers,” The Wall Street Journal, October 18, 2018 B1. FB says recent breach of ~30 million accounts was by spammers wanting to make profits, and not by nation states with evil motives.  FB will likely never find who took the information.

This raises a whole host of issues about information ownership and the duty of companies who handle and store your data.   And IT security, or insecurity.  Which is your favorite?  I personally favor what this says about the culture at FB; with these issues, the FB communication to the market and its shareholders and its customers speaks volumes about how FB views the risks of its business.  So now a denial is Information, by definition.

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Filed under Access, Communications, Compliance, Compliance (General), Controls, Corporation, Culture, Definition, Directors, Duty, Duty of Care, Employees, Governance, Information, Interconnections, Internal controls, Investor relations, IT, Oversight, Ownership, Privacy, Protect assets, Security, Technology, Third parties, Who is in charge?

Hiding another ball

“HSBC to Pay $765 Million in U.S. Pact,” The Wall Street Journal, October 10, 2018 B12.  Bank hid the risks of defective mortgages for at least 2 years.  Sold mortgaged-back securities in the meantime.

“Wells Fargo … [paid] $2.09 billion to settle similar claims.”  Four other banks also settled.

Why do we keep our money in banks?  Weren’t they supposed to be safe?  What does it say about the Boards of these companies?  Did the directors screw up?

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Filed under Communications, Compliance, Compliance (General), Controls, Corporation, Culture, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Investor relations, Oversight, Protect assets, Supervision, To report

Facebook again. Again.

“EU May Fine Facebook $1.63 Billion Over Breach,” The Wall Street Journal, October 1, 2018 B1.  The hack of 50 million Facebook users reported earlier may lead to a large fine against Facebook (4 times its annual revenue).  The regulator in Europe has demanded more information.

Impact of stock value not reported.

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Filed under Compliance, Compliance (General), Controls, Corporation, Directors, Duty, Governance, Information, Internal controls, Investor relations, IT, Oversight, Protect assets, Security, Value

Loose lips, revisited

The prior post was about what you say and in what medium.  So’s this one.

“SEC Probes Musk Tweets On Possible Tesla Buyout,” The Wall Street Journal, August 9, 2018 A1.  Were Elon Musk’s tweets about having lined up financing for a buyout false or misleading?  The SEC may want to know.

So, is information false or misleading?  I thought we had freedom of speech?  And (altogether too much) freedom to tweet?

Falsely shouting fire in a crowded theater is still a bad thing (thank you, Justice Holmes).  As is misleading your shareholders.

Should a CEO of a listed company know better?  Loose lips sink ships.

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Filed under Accuracy, Communications, Compliance, Compliance (General), Controls, Corporation, Definition, Duty, Employees, Governance, Information, Internal controls, Investor relations

Gee, what could go wrong?

“Facebook Asks Banks for Customer Data,” The Wall Street Journal, August 7, 2018 A1. “[T]o offer new services to users,” Facebook asks banks for “detailed financial information about their customers.”

I can see what’s in it for Facebook, and maybe for the banks.  But isn’t this your information?  Shouldn’t you have some control what the banks do with it?  Are you comfortable with the controls the banks and Facebook will place on this information?  It might be convenient for you, but at what risk?

Do we remember Cambridge Analytica?  Will Facebook try to do this in Europe?

To whom do you complain?  Your elected representative?  Your bank?  The state or federal regulators?

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Filed under Access, Controls, Corporation, Duty, Duty of Care, Governance, Information, Internal controls, Investor relations, IT, Oversight, Ownership, Privacy, Protect assets, Security, Third parties, Uncategorized, Who is in charge?