DOCSLIB.ORG

Miguel A. Ferrer and Carlos J. Ortiz

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Miguel A. Ferrer and Carlos J. Ortiz INITIAL DECISION RELEASE NO. 513 ADMINISTRATIVE PROCEEDING FILE NO. 3-14862 UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ In the Matter of : : INITIAL DECISION MIGUEL A. FERRER, and : October 29, 2013 CARLOS J. ORTIZ : : ___________________________________ APPEARANCES: Robert K. Levenson and Edward D. McCutcheon for the Division of Enforcement, Securities and Exchange Commission Melvin A. Brosterman, Francis C. Healy, David M. Cheifetz, Stephanie A. Cournoyer, and Patrick N. Petrocelli for Miguel A. Ferrer Peter J. MacDonald, Peter G. Neiman, Fraser L. Hunter, Jr., Brad E. Konstandt, Meghan D. Rohan, J. David Zetlin-Jones, and Clarion E. Johnson for Carlos J. Ortiz Guillermo J. Bobonis, local counsel for Mr. Ferrer and Mr. Ortiz BEFORE: Brenda P. Murray, Chief Administrative Law Judge The Securities and Exchange Commission (Commission) issued an Order Instituting Administrative and Cease-and-Desist Proceedings (OIP) on May 1, 2012, pursuant to Section 8A of the Securities Act of 1933 (Securities Act), Sections 15(b) and 21C of the Securities Exchange Act of 1934 (Exchange Act), and Section 9(b) of the Investment Company Act of 1940 (Investment Company Act). In summary, the OIP alleges that in 2008 and 2009 (relevant period), Miguel A. Ferrer (Ferrer) and Carlos Juan Ortiz-Leon (Ortiz) made misrepresentations and omitted material information about closed-end funds whose shares were issued and sold to investors by UBS Financial Services Inc. of Puerto Rico (UBS PR). I held 13 days of hearing that resulted in a record of 3,178 pages of testimony from 29 witnesses and 536 exhibits: 177 from the Division of Enforcement (Division), 164 from Ferrer, and 195 from Ortiz.1 The post-hearing briefing, totaling 838 pages, ended March 15, 2013. Issue This case is unusual. The facts are undisputed and the witnesses were for the most part forthcoming and credible. The issue is a serious difference of opinion about the level of information required to be provided to investors about a policy decision by the parent company and whether Ferrer’s and Ortiz’s actions in response to that policy decision violated the antifraud provisions of the securities statutes. Findings of Fact The findings and conclusions herein are based on the entire record. I applied preponderance of the evidence as the standard of proof. See Steadman v. SEC, 450 U.S. 91, 102 (1981). I have considered and rejected all arguments and proposed findings and conclusions that are inconsistent with this Initial Decision. UBS PR UBS PR is a registered broker-dealer and the largest in the Commonwealth of Puerto Rico (Puerto Rico) with from 47% to 51% of the market in assets under management (AUM).2 Tr. 19, 31-32, 207-08; Div. Ex. 21 at Bates 0120. UBS PR’s parent company is UBS Financial Services, Inc. (UBS or parent company), a Delaware corporation with principal places of business in New York, New York, and Weehawken, New Jersey (Weehawken), that is a wholly owned subsidiary of UBS, AG, a private issuer based in Switzerland. Tr. 20. In 2008-2009, UBS PR was operated by persons in Puerto Rico, but Legal, Compliance, and Market Risk were handled by persons in Weehawken. Tr. 190-91. UBS PR operated as a region of UBS, but for tax purposes it maintained a separate corporate structure. Tr. 1291. The actions of UBS’s Market Risk Control Committee or Risk Committee Wealth Management Americas (Risk Committee), chaired by UBS’s Chief Financial Officer (CFO), located in 3 Weehawken, were crucial to the events at issue. The Risk Committee set the level of UBS’s 1 I will cite to the transcript of the hearing as “(Tr. __.).” I will cite to the Division’s and Respondents’ exhibits as “(Div. Ex. __.)”, “(Ferrer Ex. __.)”, or “(Ortiz Ex. __.)”. I will use similar designations in citations to the post-hearing filings. 2 UBS PR’s nearest competitor in Puerto Rico has about 20% of the market. Tr. 210. Ortiz estimates UBS PR’s market share at 50% to 60%. Tr. 782. 3 Wealth Management Americas is one of three business divisions of UBS, AG and its subsidiaries. Wealth Management Americas operates a core business line and includes the domestic U.S. business, domestic Canadian business, and the international business booked in the U.S. Wealth Management Americas consists of branch networks in the U.S., Puerto Rico, and 2 worldwide risk exposure and thus determined the amount of inventory UBS PR could hold. Tr. 645, 976. Persons delivering Risk Committee decisions to UBS PR included Bernd Michel (Michel), UBS Chief Risk Officer, Mark Guarino, Director UBS Credit Risk Control, Jim Hausmann (Hausmann), head of traditional products for Wealth Management Americas, and Thomas Magdziak (Magdziak), UBS’s Market Risk Officer, and Michael Culnan (Culnan), who replaced Magdziak in April 2009. Tr. 126, 476, 643, 812, 1159, 2161. No one from UBS PR was on the Risk Committee. Tr. 1292, 2648. Ferrer Ferrer holds B.A. and M.B.A. degrees from Cornell University. Tr. 1289. He entered the securities industry in 1961 as a financial advisor (FA). Tr. 1289. Ferrer is responsible for UBS PR’s preeminent position in the Puerto Rican securities market. In 1965, he opened a two- person office in Puerto Rico for Blyth, Eastman, Dillon, which is today UBS PR. Tr. 1290. In 1986, under his leadership, UBS PR began tailoring financial products to Puerto Rican investors when other broker-dealers relied on their standard products. Tr. 209-10. In 2005, UBS PR was recognized by UBS for its focus on clients. Tr. 1396-98; Ferrer Ex. 534. Ferrer did not consider that good enough. Tr. 1398. Ferrer was Chairman and Chief Executive Officer (CEO) of UBS PR from 2003 until October 2009. Three months later he was re-hired as Vice-Chairman. Tr. 991; Div. Ex. 152 at 1. Ferrer is considered a financial visionary with respect to Puerto Rico. Tr. 2172, 2904. Alfredo Salazar, who has been: (1) President of the Puerto Rico Industrial Development Company; (2) President of the Government Development Bank of Puerto Rico (GDB), which manages the debt of the central government and advises the Governor of Puerto Rico; (3) President of Chase Manhattan banks in Brazil and Argentina; (4) a position with Paine Webber; (5) President of Banco de Ponce; (6) head of the Economic Development Administration in Puerto Rico; (7) President of Palmas Del Mar Properties; and (8) Chairman of the Board and then, again, President of the GDB, testified that Ferrer is a close advisor on financial matters and they have a relationship of mutual respect. Tr. 2163-73. Carlos Ubinas (Ubinas), President and Chief Operating Officer of UBS PR, hired Ferrer and is the only person who reported to Ferrer.4 Tr. 169, 211, 1048, 1299, 2904. Ferrer reported to James D. Price (Price), Chairman of UBS PR, in Weehawken, who reported to Marten Hoekstra (Hoekstra), head of Wealth Management of Americas. Tr. 214, 809, 992, 1159, 2492- 95. Hoekstra and Price were on the Risk Committee. In 2008 and in 2009, Ferrer was also CEO Canada. http://www.fdic.gov/regulations/reform/resplans/plans/ubs-1207.pdf (last visited Oct. 18, 2013). 4 Ubinas is a graduate of George Washington University and the University of Puerto Rico School of Law. Tr. 2827. Before joining UBS PR in 1990, he worked at a law firm in Puerto Rico and as a Vice-President, GDB. Tr. 2827-29. 3 of UBS Trust Company, and CEO and Chairman of each of the Funds.5 Tr. 991, 1113; Ferrer Ex. 525. Ferrer was paid $300,000 in salary and a $150,000 cash bonus, for 2008, and his total compensation in 2008 and 2009, was over $2.5 million and $2 million, respectively.6 Tr. 1267- 71; Div. Exs. 90, 122. Ferrer communicated with Financial Advisors (FAs) regularly and had a reputation for trying to energize the sales force by sending memos and e-mail messages with his strong beliefs in UBS PR products. Tr. 2801-03. He considered keeping FAs focused a very important CEO function. Tr. 1494. Ferrer testified he had no direct responsibility for sales, but an FA testified that Ferrer came to his branch sales presentations about twice a year and told FAs to recommend investments. Tr. 1628-30, 1632. Ferrer acknowledged that he wished his e-mails and memos to FAs resulted in sales conversations, but denied it was their main purpose. Tr. 1494-95. Ferrer contacted the Trading Desk on behalf of FAs who came to him with complaints. Tr. 1138-41, 1286; Div. Ex. 5. Ferrer played no role in pricing or setting inventory levels, and he is not an expert in trading. Tr. 221, 1084, 1156, 1352-53, 2905-06. Ferrer did not consider that he had any responsibility in formulating disclosures to FAs or to customers, and he testified that Legal and Compliance determined what disclosures were required of UBS PR. Tr. 1357-58, 1485. FAs and Eugenio S. Belaval (Belaval), head of UBS PR Wealth Management, kept Ferrer informed about markets and prices.7 Tr. 15, 1287. In 2008, FAs told Ferrer that the market was imbalanced, and in 2008-2009, FAs complained to him about trouble selling shares. Tr. 1028. Ferrer knew in May 2009 that UBS had ordered UBS PR to reduce inventory, and that the Trading Desk had stopped buying shares and was lowering prices to sell inventory. Tr. 1242-43, 1248. Ortiz Ortiz is a graduate of Georgetown University and the Wharton School, University of Pennsylvania, in 1985. Tr. 495. He joined First Boston Corporation in Puerto Rico in 1985 as an associate specializing in investment banking and became a Vice-President.
Load more

Recommended publications
  • FORBES 30 Under
    The rugged and revolutionary Olympus OM-D E-M1. No matter where life’s INTRODUCING A CAMERA adventures take you, the Olympus OM-D E-M1 can always be by your side. Its AS RUGGED magnesium alloy body is dustproof, splashproof, and freezeproof, so it’ll survive the harshest of conditions. And the super-fast and durable 1/8000s mechanical AS YOU ARE. shutter and 10 fps sequential shooting will capture your entire journey exactly the way you experienced it. www.getolympus.com/em1 Move into a New World ÒThe OM-D lets me get great shots because itÕs rugged and durable. In this shot, I was shooting when the dust was the thickest because it enhanced the light. I even changed lenses and IÕve yet to have a dust problem with my OM-D system.Ó -Jay Dickman, Olympus Visionary Shot with an OM-D, M.ZUIKO ED 75-300mm f4.8-6.7 II • One of the smallest and lightest bodies in its class at 17.5 ounces* • Built-in Wi-Fi • Full system of premium, interchangeable lenses *E-M1 body only contents — JAnUARY 20, 2014 VOLUME 193 NUMBER 1 30 FORBES 30 UNDER 88 | NEXT-GENERATION ENTREPRENEURS Four hundred and f fty faces of the future. 11 | FACT & COMMENT BY STEVE FORBES The lies continue. LEADERBOARD 14 | SCORECARD 2013: a very good year. 16 | BEING REED HASTINGS The man running the show at Netfl ix has a story that any screenwriter would be proud of. 18 | THE YEAR’S HOTTEST STARTUPS A panel of VCs and entrepreneurs selected these businesses from more than 300 contenders.
    [Show full text]
  • Treasury Secretary Steven T. Mnuchin's Calendar for February 2017 to June 2017
    Steven Mnuchin, Secretary of the Treasury Detailed Calendar/Schedule, February-September 2017 AltGov2 www.altgov2.org/calendars documents added to <a href="http://altgov2.org/presidential- transition-briefings/">Presidential Transition Briefings</a> ///// <strong>Conway</strong>, <strong>Sanders</strong>, <strong>Hicks</strong>, <strong>Spicer</strong>, <strong>Mulvaney</strong>, and others added to <a href="http:// altgov2.org/unposted-financial-disclosures/">Unposted Financial Disclosures</a> ///// Four new documents in <a href="http:// altgov2.org/kushner-watch/">Kushner $$ Watch</a> ///// <strong>NASA</strong> added to <a href="http://altgov2.org/ fevs/">Surveys</a> ///// <strong>Big new project</strong>: <a href="http://altgov2.org/fevs/">Federal Employee Viewpoint Survey</a> www.altgov2.org February 2017 Tue, Feb 14 (b) (7)(E) 9:00 AM – 9:10 AM Official Welcome with Treasury Staff 9:15 AM – 9:45 AM Daily Briefing 9:45 AM – 10:15 AM Senior Staff Meeting 10:15 AM – 10:30 AM Prep with Staff 10:30 AM – 11:00 AM Phone Call with UK Chancellor Philip Hammond 11:00 AM – 11:45 AM Briefing with John Smith 12:00 PM – 12:30 PM NEC Lunch 12:30 PM – 12:55 PM Press Conference Pre‐Brief with Sean Spicer 1:00 PM – 1:30 PM Press Conference 1:30 PM – 2:30 PM Meeting with Staff 2:45 PM – 3:45 PM Meeting with Staff 4:00 PM – 4:10 PM Phone Call with Senator Mitch McConnell 4:00 PM – 5:00 PM Meeting with Staff 5:00 PM – 5:20 PM Meeting with David Nason, GE Energy Financial Services 5:30 PM – 6:00 PM White House Meeting 6:45 PM – 7:00 PM Phone Call with
    [Show full text]
  • Breaking Through to Better Health Care
    Breaking through to better health care New York’s most progressive health system 2018 Annual Report On the cover: The latest New York State Department of Health report listed Lenox Hill Hospital as having among the lowest mortality rates in the state for cardiac surgery. Dear friends, Northwell Health is revolutionizing the health care industry through an ongoing commitment to disruptive innovation and continued excellence. The health system’s achievements over the past year are a remarkable testament to the vision and dedication of our trustees, physicians, nurses and the more than 68,000 individuals who work under the Northwell banner. We share a single unifying purpose: to provide the highest quality care to our communities. One begins to understand the magnitude of the health system’s accomplishments when we look at the accolades and achievements earned over the past year from prestigious organizations such as the American Hospital Association (AHA), Surgical Review Corporation (SRC), American Nurses Credentialing Center (Magnet), Society for Thoracic Surgeons (STS), TIME Magazine, the Healthcare Association of New York State (HANYS), and others. When the AHA recognizes Northwell for improving access, addressing social determinants and encouraging innovation with its Quest for Quality Prize — the first health system ever to win the award — that says something. When SRS and STS honor Northwell for robotic surgical excellence (the first health system ever recognized) and the Sandra Atlas Bass Heart Hospital in all five cardiothoracic surgical categories respectively — that says something. When North Shore University and Mather hospitals earn Magnet recognition, the gold standard for nursing excellence, and join Cohen Children’s Medical Center, Long Island Jewish Medical Center, Huntington and Northern Westchester hospitals on that prestigious list — that says something.
    [Show full text]
  • Calendar of Treasury Secretary Mnuchin, July 2017 to September 2017
    July 2017 • Sat, Jul 1 • 7:45 PM - 9:15 PM .&. Sun, Jul 2 • 7:30 PM - 9:00 PM • Mon, Jul 3 • 9:00 AM - 9:45 AM Daily Briefing • 9:45 AM - 10:00 AM Phone Call with Congressman Sean Duffy • 3:30 PM - 4:00 PM Phone Call with Staff on­ & Tue, Jul 4 • 3:00 PM - 3:30 PM Meeting 4:00 PM - 4:30 PM Ph one Call with Staff on- • 7:00 PM - 9:30 PM Dinner Recept ion and Fireworks Viewing with Secretary • of State Rex Tillerson • Wed,JulS • ­ • ­ • -­ & Thu, Jul 6 D All Day G-20 Hamburg Summit • 8:45AM - 9:10AM - • 9:35 AM ­- 10:25 AM POTUS Bilateral Meeting with Polish President Andrzej • - Duda • 10:30 AM - 10:45 AM POTUS Joint Press Conference • 11:15 AM - 11:20 AM Remarks by Polish President Andrzej Duda • 11:20 AM - 11:30 AM Remarks by POTUS • 11:30 AM - 12:10 PM Transatlantic Roundtable 12:15 PM – 12:30 PM POTUS Bilateral Meeting with Croatian President Kolinda Grabar‐Kitarovic (b) (7)(E) 1:05 PM – 1:35 PM POTUS Speech (b) (7)(E) (b) (7)(E) (b) (7)(E) (b) (7)(E) (b) (7)(E) (b) (7)(E) (b) (7)(E) 4:40 PM – 5:45 PM POTUS Staff Time (b) (7)(E) 6:00 PM – 6:45 PM POTUS Bilateral Meeting with German Chancellor Angela Merkel 7:30 PM – 9:00 PM Northeast Asia Security Dinner Fri, Jul 7 All Day G‐20 Hamburg Summit (b) (7)(E) (b) (5) 9:50 AM – 10:10 AM (b) (7)(E) (b) (7)(E) 10:30 AM – 11:30 AM G‐7 Finance Ministers Meeting 11:30 AM – 11:40 AM Pull Aside with UK Chancellor Philip Hammond 12:35 PM – 12:50 PM Pull Aside with Chinese Minister Liu He 1:00 PM – 1:10 PM G‐20 Summit Working Lunch Session I: Global Growth and Trade 1:15 PM – 1:45 PM POTUS Bilateral
    [Show full text]
  • Women As a Force for Economic Change Contents
    CIO Wealth Management Research a b October 2016 Women as a force for economic change Contents Foreword ........................................................................................ 3 Publication details This report has been prepared by UBS. Introduction ................................................................................... 4 Please see important disclaimer and disclosures at the end of the document. Chapter 1 Editor in Chief Carl Berrisford Persistence of the gender gap ........................... 6 Authors Interview with Hana Dang Carl Berrisford Min Lan Tan Cultural attitudes, education opportunities & Soledad Lopez career challenges .......................................................................... 8 Chisa Kobayashi Desktop Publishing Chapter 2 Margrit Oppliger Werner Kuonen The glass ceiling ............................................................... 11 Project Management Nicole Lee Chapter 3 Cover photo Towards a solution – understanding iStock what matters ...................................................................... 15 Languages English, Chinese (traditional and Interview with Yukari Inoue simplified) and Japanese Addressing traditions, identifying policy challenges, need for empowerment .............................................................. 16 Contact [email protected] Interview with the Baroness Ruby McGregor-Smith, CBE Maternity challenges, building aspirations, role models .................................................................................... 20 Interview
    [Show full text]
  • Corporate Social Responsibility Report
    2019 Corporate Social Responsibility Report Our commitment to the environment, our communities and our people Contents 4 5 6 A message from About this report Who we are and Invesco’s President what we do and CEO 8 12 14 Corporate Invesco’s Corporate Fostering a culture Responsibility Social Responsibility where diverse people Program Program management and ideas thrive 2 Contents 20 24 26 ESG investing that Our approach to Sustainable operations aligns with clients’ climate change and strong governance long-term interests 32 36 42 Supporting our Ethics, security Invesco’s response communities and governance to COVID-19 46 49 Our CSR indicators GRI & SASB index 3 A message from Invesco’s President and CEO Dear Invesco stakeholder, For more than 30 years, Invesco has demonstrated its commitment to corporate social responsibility by actively encouraging ESG (environmental, social and governance) practices across every aspect of our business. Our commitment to corporate social responsibility is fully aligned with our Purpose—delivering an investment experience that helps people get more out of life. In support of this commitment and to drive progress in this important area, we focus our organization on three pillars: – Fostering a culture where diverse people and ideas thrive; – Making responsible investments that align with the long-term interests of our clients; and – Ensuring sustainable operations and strong governance. These pillars serve as guideposts for decisions we make about our business and help us build on the strong foundation we’ve put in place over three decades. We hold ourselves to the same ESG standards and practices that we encourage the companies we invest in to adopt and champion.
    [Show full text]
  • Millennials – the Global Guardians of Capital UBS Chief Investment Office Americas Wealth Management White Paper
    Millennials – the global guardians of capital UBS Chief Investment Office Americas Wealth Management white paper June 2017 Contents Why millennials matter. P. 5 Who are these millennials... and who are they not? P. 11 Technology is impacting expectations and behaviors across generations. P. 17 Demand for using private wealth for public good is also rising across generations. P. 27 Appendix P. 33 Millennials – the global guardians of capital 2 Foreword Dear reader, The financial, economic and sociopolitical prominence of the “millennial” generation is continuing to grow at a rapid pace. Those born between 1982 and 1998 already account for 27% of the global population. Today they hold USD 17trn of the world’s private wealth, and by 2020, that could rise as high as USD 24trn — or roughly 1.5 times the US’s national output in 2015. Looking further ahead, millennials are set to control an even greater share of global wealth, as they are positioned to benefit from one of the largest intergenerational wealth transfers in history. In this white paper, UBS CIO WM explores the ways that the millennial generation is different, and how the impending shift of economic power will significantly influence their expectations and potential compared to prior generations. The paper specifically highlights three characteristics that set millennials apart from those that came before them. First, millennials are digital natives that have grown up in a world of automation and connectivity. This high fluency with technology means millennials demand ever more digital services, and accelerating adoption rates imply that new innovations are already spreading quickly across generations.
    [Show full text]
  • GSX Techedu Is an $18 Billion Fraud…Enabled by Their Auditor Deloitte Touche Tohmatsu Is Demonstrating “Unreasonable Reckles
    Deloitte Watch HOME ABOUT EVIDENCE DELOITTE'S FAILURES CONTACT US GSX Techedu is an $18 Billion Fraud…enabled by their auditor Deloitte Touche Tohmatsu is demonstrating “unreasonable recklessness” in continuing their role as auditor UPDATE: On 10/28/2020 the Senior Leadership of Deloitte Touche Tohmatsu was delivered notice of this website. GSX TECHEDU (NYSE: GSX) IS A CHINESE ONLINE EDUCATION COMPANY IN AN ULTRA-COMPETITIVE MARKET YET REPORTS FASTER GROWTH THAN FACEBOOK, BETTER PROFIT MARGINS THAN GOOGLE AND CLAIMS TO HAVE ACHIEVED PROFITABILITY FASTER THAN AMAZON OR NETFLIX. GSX’S IPO TOOK PLACE IN JUNE 2019 ON THE NYSE AND IT IS UP 650% SINCE, WITH A CURRENT VALUATION CLOSE TO $18 BILLION DOLLARS. HOWEVER, THE COMPANY HAS BEEN LOUDLY, REPEATEDLY AND PUBLICLY ACCUSED OF FRAUD BY TOP RESEARCH FIRMS SPECIALIZING IN CHINESE FRAUD. TWELVE SEPARATE REPORTS CONCLUDE THAT GSX IS INFLATING ITS 2019 REVENUES BY 70-90%. THE TRACK RECORD OF THESE RESEARCH FIRMS IS STELLAR, HAVING UNCOVERED FRAUD AT CHINESE COMPANIES SUCH AS LUCKIN COFFEE, SINO-FOREST, CHINA MEDIAEXPRESS, AND LONGTOP FINANCIAL. GSX’S SUCCESS ON THE NYSE IS PREDICATED ON ONE UNFORTUNATE FACT: massive fraud, allowed through unreasonable recklessness by Deloitte Touche Tohmatsu. THIS WEBSITE SHOWS IN DETAIL HOW DELOITTE TOUCHE TOHMATSU IS FAILING TO EXHIBIT Professional Skepticism, A CRITICAL COMPONENT OF THEIR ROLE AS AUDITOR. WE SHOW THAT DELOITTE HAS TURNED A BLIND EYE TO FRAUDULENT CHINESE COMPANIES IN THE PAST. FINALLY, WE SHOW THAT AFTER OFFERING DELOITTE TOUCHE TOHMATSU FIRSTHAND EVIDENCE OF FRAUD, THEY RESPONDED WITH THREATS AND INTIMIDATION IN THE FORM OF PERSONAL LAWSUITS.
    [Show full text]
  • FINANCIAL SERVICES ADVISOR a PUBLICATION of the DIALOGUE November 7-20, 2019
    LATIN AMERICA ADVISOR FINANCIAL SERVICES ADVISOR A PUBLICATION OF THE DIALOGUE www.thedialogue.org November 7-20, 2019 BOARD OF ADVISORS FEATURED Q&A TOP NEWS Ernesto Armenteros Vice Chairman of the Board, BANKING Banco de Ahorro y Crédito Unión What Will the Next Venezuela Doubles Pablo Barahona President & COO, Amount of Euros Global Retail Markets West, Liberty Mutual Group Argentine Gov’t it Provides Banks Felipe Carvallo Venezuela’s central bank has Vice President - Analyst doubled the amount of euros that Latin America Banking Mean for Banks? Moody’s Investors Service it provides to local banks. The country’s hyperinflation, along Richard Child with U.S. sanctions, have led to a CEO, Mattrix Group surge in the use of the European currency. Michael Diaz Jr. Page 2 Partner, Diaz, Reus & Targ Ernesto Fernández Holmann INSURANCE Chairman of the Board, Ayucus Mutua Madrileña Rich Fogarty Buys 45 Percent of Managing Director, Alvarez and Marsal Seguros del Estado Desiree Green Spain-based insurance company Vice President, Peronist Alberto Fernández takes office as Argentina’s president on Dec. 10. The country’s Mutua Madrileña has bought a banks are watching for policies that could affect the sector. // File Photo: Fernández Cam- International Government Affairs, stake in Colombia’s Seguros del Prudential Financial paign. Estado. The transaction is expect- The rise of Peronist Alberto Fernández, who won Argentina’s Earl Jarrett ed to close, pending regulatory Chief Executive Officer, presidential election on Oct. 27, led to a plunge in investor approvals, early next year. The Jamaica National Group confidence in the South American country, with stocks, Page 2 Thomas Morante Chair, Insurance Regulatory & Q bonds and the peso falling since he won the primary election Transactional Practice Group in August.
    [Show full text]
  • Governance: Putting the G in ESG by STEPHEN SCOTT MAY 17, 2021
    © Starling Trust Sciences 2020 Governance: Putting the G in ESG By STEPHEN SCOTT MAY 17, 2021 inancial sector regulators have made the supervision of culture and conduct risk a priority. This dovetails with increased investor focus on environmental, Fsocial and governance (ESG) issues. Factors regarding corporate culture, and the conduct it promotes, that are of interest to regulators are largely the same as those in which investors take interest, given implications for governance and operational resilience. As these powerful trends merge, they look set to amplify one another. Governance: Putting the G in ESG 1 Which ESG factor impacts most to your investment decision? 2020 13% 82% 5% 2019 9% 88% 5% 2018 5% 91% 4% 5% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Environmental Governance Social Source: Russell Investments 2020 Annual ESG Manager Survey There is a strong case to be made that governance have proven more resilient over the course of the interests will receive more attention as we move pandemic.4 But the relationship between governance past the COVID-crisis. “Whilst the focus on failures and harmful social outcomes is robust. sustainability and ESG factors is good, we think that in addition it would be worth considering whether While there may be differences in prioritization or more traditional elements of corporate governance interpretation of specific ESG measures, on broader deserve attention,” PwC opined in an October 2020 levels a consensus is emerging. “ESG is often a letter to the European Commissioner for Justice. “In
    [Show full text]
  • Mergers 12.10.10
    12.10.10 Mergers FRIDAY BRIEF Emerging Markets Buyers to Drive 2011 M&A M&A Announcements TARGET ACQUIRER TOTAL NAME NAME VALUE BY BRETT FOLEY ($M) Asian companies seeking Survey Expectations for 2011 M&A EnBW Energie Republic of Germany 12,947 to expand internationally may EnBW Energie (EDF) Republic of Germany 6,250 Nicor Inc AGL Resources 3,138 propel modest gains in merg- ASIA 17% 57% 9% 7% Banco BTG Multiple acquirers 1,800 ers and acquisitions next year, Trade House Kopeyka X5 Retail Group 1,650 extending the recovery that 2% Conforama SA Steinhoff Int'l 1,596 began in 2010, a Bloomberg EUR 16% 58% 8% 1% Attfund Retail Hyprop Investments 1,303 survey showed. 2% Aster Sp Zoo Liberty Global 793 There will be at least a small US 17% 53% 8% 1% Ceske Radiokomunikace Macquarie Group 763 increase in mergers and ac- Two Power Plants Xcel Energy Inc 739 quisitions in 2011 after a 12 0% 20% 40% 60% 80% 100% Total SA Assets Arkema 736 percent gain to $1.96 trillion Large Increase Small Increase No Change Hochtief AG Qatar Investment Auth 531 so far this year, according Small Decrease Large Decrease to the Global M&A Outlook, Source: Bloomberg 2011 M&A Survey which queried 1,030 invest- ment bankers, research ana- Recent Completed Deals lysts, traders, portfolio managers and sales- showed. Deals involving China have jumped TOTAL DATE TARGET ACQUIRER VALUE people. Fifty-eight percent said the most in 2010, with Zhejiang Geely Holding active buyers would be based in Asia Pacific Group Co.'s agreeing to buy Ford Motor Dec 6 Mirant Corp GenOn Energy 2,112 or Central Asia, followed by North America, Co.’s Volvo Cars unit for $1.6 billion in August.
    [Show full text]
  • Year Ahead 2018 UBS House View
    Year Ahead 2018 UBS House View United States ChieG *nWeTtNent 0GŖce ANericaT 8. Changing context a b Mosaic Canyon Trail, Death Valley, California. Dear reader, Welcome to the Year Ahead 2018. Inside, we explore many of the issues expected to impact economic performance and inves- tor sentiment aŝer a year that challenged conventional wisdom. In 201, we saw ongoing geopolitical turCulence, heightened political and civil tensions here in the US and aCroad, and threats to the gloCal Calance of power. At the same time, we experi- enced strong and steady economic growth across a numCer of regions and sectors. This divergence resulted in persistent uncer- tainty aCout where the gloCal economy was heading and how investors should react. Against that CacLdrop, we now turn to the future and some of the Ley factors that we anticipate will drive marLets in the months ahead, including tighter monetary policy, political upheaval, technological disruption, and suCstantial environmen- tal and social challenges. As with any landscape deŖned Cy constant change, investors must worL hard to identify Coth opportunities and risLs as they progress toward their Ŗnancial goals. So the Year Ahead also ošers recommendations to help guide you and your portfolio through 2018 and Ceyond. The outlooL for 2018 is complex, and successfully navigating the marLets will reRuire thoughtful insight and gloCal perspective. The Year Ahead has Coth, and we thanL you for taLing the time to read it. Tom Naratil 1resident Wealth Management Americas and President Americas UBS
    [Show full text]