FSA Companies

July 8th, 2013

The issue in the United States.UU. It has deeper roots since the SEC has the function of monitoring the solvency of investment banks (among which is logically, Bearn Stearns), by which its fall generates big questions for the regulatory body. Why is that the SEC suspected that there was manipulation by the market with Bearn Stearns it? For the SEC, Bearn Stearns was in one situation more than acceptable. On March 11, just four days before the announcement of the sale of the entity, Christopher Cox (President of the SEC), had said about Bear Stearns: we feel comfortable with the cushion of capital that has the signature at the moment. Suspicions of manipulation are not limited only to the North American market. Also the British supervisor of the markets, the FSA (Financial Services Authority), launched an investigation by the spread of rumors about the solvency of the English banks causing in quotations of the main banks in United Kingdom, a high volatility of the last few days. In the case of the actions of Halifax Bank of Scotland, them arrived yesterday fell 18% by speculation about liquidity problems. With numerous cases on manipulation of prices of shares and use of privileged information (whose most memorable example in recent months relates to Societe Generale), it makes it very difficult to determine what respond to variations in the prices of the shares of the companies (in particular, financial institutions).

It is likely that great volatility and pessimism that is seen in the markets have been unfairly punished companies that enjoy a good situation and positive Outlook does know what are these companies? I know it is difficult, but some of them are sending signals to the market through repurchase their shares. Through share buybacks, these companies are saying the market values on which are listed the same are located significantly below that would be based on their health and their perspectives. In this last time the volume has increased significantly from stock buybacks, with large companies actively participating in the operation. Among the large companies that have recently announced stock buybacks are IBM (NYSE:IBM) and Telefonica S.A. (NYSE:TEF). Surely for the shareholders of those companies where it is projected to repurchase part of shares in circulation, this signal gives them something of tranquility. You will find us again tomorrow, Horacio Pozzo Autor original and source of the article.

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