More legal action likely for Facebook’s bungled IPO
Nasdaq OMX Group Inc. may plan to repay brokerages $62 million lost during the disastrous launch of Facebook’s IPO, which morphed from a minor slip-up to an investment debacle last year. An estimated $500 million was lost due to the delays and general chaos caused by Nasdaq’s insufficient planning for demand of the stock.
But waiting in the wings is the possibility of the government or other interested parties filing their own legal complaints against Nasdaq.
Plus, there’s the SEC probe into the matter that has yet to be released, which probably won’t like the handling of Facebook’s IPO.
Read more on the possibility here.
Photos: Carolyn Cole / Los Angeles Times

More legal action likely for Facebook’s bungled IPO

Nasdaq OMX Group Inc. may plan to repay brokerages $62 million lost during the disastrous launch of Facebook’s IPO, which morphed from a minor slip-up to an investment debacle last year. An estimated $500 million was lost due to the delays and general chaos caused by Nasdaq’s insufficient planning for demand of the stock.

But waiting in the wings is the possibility of the government or other interested parties filing their own legal complaints against Nasdaq.

Plus, there’s the SEC probe into the matter that has yet to be released, which probably won’t like the handling of Facebook’s IPO.

Read more on the possibility here.

Photos: Carolyn Cole / Los Angeles Times

Setting the groundwork for profitable legalization
As more and more states alter their marijuana policies, from decriminalizing the possession within preset restrictions, allowing its use for medicinal purposes to outright legalization, entrepreneurs are increasingly seeing green.
Ken VandeVrede, chief operating officer at Terra Tech, a hydroponic equipment maker, is among those bracing for the flood gates to open:

"We can scale this thing very, very quickly. When hemp and cannabis become legal, we’re ready to rock and roll."

And things aren’t exactly quiet on the investment side of things. From Brendan Kennedy, chief executive of the Seattle private equity firm Privateer Holdings

"More and more people see the inevitability. They see that the Berlin Wall of cannabis prohibition is going to come down."

Read more, and learn about the possible involvement of Wall Street in the marijuana industry, here.
Photo: David Paul Morris / Bloomberg

Setting the groundwork for profitable legalization

As more and more states alter their marijuana policies, from decriminalizing the possession within preset restrictions, allowing its use for medicinal purposes to outright legalization, entrepreneurs are increasingly seeing green.

Ken VandeVrede, chief operating officer at Terra Tech, a hydroponic equipment maker, is among those bracing for the flood gates to open:

"We can scale this thing very, very quickly. When hemp and cannabis become legal, we’re ready to rock and roll."

And things aren’t exactly quiet on the investment side of things. From Brendan Kennedy, chief executive of the Seattle private equity firm Privateer Holdings

"More and more people see the inevitability. They see that the Berlin Wall of cannabis prohibition is going to come down."

Read more, and learn about the possible involvement of Wall Street in the marijuana industry, here.

Photo: David Paul Morris / Bloomberg

(This is for Groupon employees, but I’m posting it publicly since it will leak anyway)

People of Groupon,

After four and a half intense and wonderful years as CEO of Groupon, I’ve decided that I’d like to spend more time with my family. Just kidding - I was fired today. If you’re wondering why… you haven’t been paying attention. From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that’s hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable.

You are doing amazing things at Groupon, and you deserve the outside world to give you a second chance. I’m getting in the way of that. A fresh CEO earns you that chance. The board is aligned behind the strategy we’ve shared over the last few months, and I’ve never seen you working together more effectively as a global company - it’s time to give Groupon a relief valve from the public noise.

For those who are concerned about me, please don’t be - I love Groupon, and I’m terribly proud of what we’ve created. I’m OK with having failed at this part of the journey. If Groupon was Battletoads, it would be like I made it all the way to the Terra Tubes without dying on my first ever play through. I am so lucky to have had the opportunity to take the company this far with all of you. I’ll now take some time to decompress (FYI I’m looking for a good fat camp to lose my Groupon 40, if anyone has a suggestion), and then maybe I’ll figure out how to channel this experience into something productive.

If there’s one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what’s best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness - don’t waste the opportunity!

I will miss you terribly.

Love,

Andrew

test reblogged from digg

Getting brilliant students to seek jobs beyond Wall Street

The financial industry has long concentrated its search for new blood on the well-manicured campuses of America’s elite universities. But that pipeline to talent is facing some push-back.

latimes:

Wall Street is betting on Buy Here Pay Here  used-car dealers: Private equity firms are investing in chains of used-car lots, and auto loans are being packaged into securities much like subprime mortgages. They’re attracted by the industry’s average profit of 38% for each car sold.

This is what you should take away from the article:

Buy Here Pay Here is also being boosted by one of the sophisticated financial strategies that drove the nation’s recent housing boom and bust: securitization. Loans on decade-old clunkers are being bundled into securities, just as subprime mortgages were a few years ago. In the last two years, investors have bought more than $15 billion in subprime auto securities.
Although they’re backed mainly by installment contracts signed by people who can’t even qualify for a credit card, most of these bonds have been rated investment grade. Many have received the highest rating: AAA.
That’s because rating firms believe that with tens of thousands of loans lumped together, the securities are safe even if some of the loans prove worthless.

latimes:

Wall Street is betting on Buy Here Pay Here used-car dealers: Private equity firms are investing in chains of used-car lots, and auto loans are being packaged into securities much like subprime mortgages. They’re attracted by the industry’s average profit of 38% for each car sold.

This is what you should take away from the article:

Buy Here Pay Here is also being boosted by one of the sophisticated financial strategies that drove the nation’s recent housing boom and bust: securitization. Loans on decade-old clunkers are being bundled into securities, just as subprime mortgages were a few years ago. In the last two years, investors have bought more than $15 billion in subprime auto securities.

Although they’re backed mainly by installment contracts signed by people who can’t even qualify for a credit card, most of these bonds have been rated investment grade. Many have received the highest rating: AAA.

That’s because rating firms believe that with tens of thousands of loans lumped together, the securities are safe even if some of the loans prove worthless.

test reblogged from latimes

Wall Street is betting on Buy Here Pay Here  used-car dealers: Private equity firms are investing in chains of used-car lots, and auto loans are being packaged into securities much like subprime mortgages. They’re attracted by the industry’s average profit of 38% for each car sold.
This is the second part of our three-part series on Buy Here Pay Here lots. Read the first part here.
Photo:   J.D. Byrider, a chain of 135 Buy Here Pay Here dealerships, was acquired in May by the private equity firm Altamont Capital Partners of Palo Alto. Above, the J.D. Byrider lot in Visalia, Calif. Credit: Kirk McCoy / Los Angeles Times

Wall Street is betting on Buy Here Pay Here used-car dealers: Private equity firms are investing in chains of used-car lots, and auto loans are being packaged into securities much like subprime mortgages. They’re attracted by the industry’s average profit of 38% for each car sold.

This is the second part of our three-part series on Buy Here Pay Here lots. Read the first part here.

Photo: J.D. Byrider, a chain of 135 Buy Here Pay Here dealerships, was acquired in May by the private equity firm Altamont Capital Partners of Palo Alto. Above, the J.D. Byrider lot in Visalia, Calif. Credit: Kirk McCoy / Los Angeles Times