Financial Biz Cheat Sheet: Gupta Goes Down, MF Global Spirals
Ex-Goldman Sachs Group Inc. (NYSE:GS) director and McKinsey chief Rajat Gupta surrendered to the Federal Bureau of Investigation. He faces charges of leaking insider information to Raj Rajaratnam, the co-founder of Galleon Group who was recently sentenced to 11 year in prison for insider trading. Gupta’s case will pose a different challenge for the government’s case as he didn’t make any money from his actions while Rajaratman made millions.
MF Global Holdings Ltd. (NYSE:MF) reported disappointing third quarter earnings on Tuesday and saw its stock tank 48 percent. Today, the firm said it will explore strategic options including selling to another company, pursuing mergers or participating in other alternatives including asset sales. Adding to the stock’s shaky price is investors’ concerns about the firm’s $6 billion exposure to Europe’s sovereign debt.
Investing Insights: Are These 5 Momentum Stocks Broken?
MetLife, Inc.’s (NYSE:MET) stock dove after the Fed rejected its proposed plan to increase the company’s dividend and share repurchase. The could have led to an embarrassment by the company and now it may time for MetLife to quickly exit from banking. This could take awhile, some analysts believe, but it’s one action worth taking for the company.
The State of Masschusetts filed a civil suit against the Bank of New York Mellon Corporation (NYSE:BK) over foreign exchange trading fees. This isn’t the first time the bank has been in trouble for this. New York State and the Justice Department also filed suits against the bank earlier this month for giving bad prices to customers and allegedly ripping them off.
Bank of China Ltd. plans to will issue American Express Co. (NYSE:AXP) credit cards to its private clients. The cards will come with a “fast-track” service and other perks. Lucky for American Express to breakthrough and add the customers: Visa Inc. (NYSE:V) and MasterCard Incorporated (NYSE:MA) have attempted to enter into this fast-growing area but didn’t have any luck.
Super Hot Feature: 5 Wall Street Crisis Films to Watch Now.