2006 November 03 | Capital Flow Watch

BHO's Greenies press to ban successful natural gas drilling; All roads to energy independence must be blocked. http://bit.ly/dJZNF8 #tcot >>
US Inflation Now at 4%; Bernanke Dismisses the Signs http://bit.ly/i15fj2 #tcot >>
Fed's Bullard says inflation on the rise; Bernanke's 'core inflation' concept is crap. http://reut.rs/g7kWpC #tcot >>
False Friends Romney Doesn't Need: Dems praise RomneyCare http://on.wsj.com/egMVar #tcot >>
Obamacare cuts services in low-income, West Virginia health centers http://bit.ly/hinFgP He doesn't like coal miners anyway. #tcot >>

Stock buybacks

Litigation threat for executive options?

By John Schroy, on November 3rd, 2006 |

If you run the beast will catch you; if you stop the beast will eat you ...

Trial lawyers are showing interest in the apparent conflict of interest when insiders use stockholders’ money to buy back shares on the theory that they are undervalued, and at the same time are unloading their own shares.

Legal action in this direction could threaten the equity market, given the importance of stock buybacks in keeping prices up.

If stock buybacks were to cease, for any reason, the market could crash, which might wake the SEC from its slumbers.

More » Litigation threat for executive options?