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| Subject: SEC Rule 10b-18 In 1982, the US Securities and Commission adopted Rule 10b-18,4 which provides that an issuer will not be deemed to have violated Sections 9(a)(2) and 10(b) of the Exchange Act, and Rule 10b-5 under the Exchange Act, solely by reason of the manner, timing, price, or volume of its repurchases, if the issuer repurchases its common stock in the market in accordance with the safe harbor conditions. Rule 10b-18’s safe harbor conditions are designed to minimize the market impact of the issuer’s repurchases, thereby allowing the market to establish a security’s price based on independent market forces without undue influence by the issuer. The practical effect of this rule was to encourage massive stock buybacks by corporations as a means of manipulating prices upwards in order to give value to executive stock options. US equities: By John Schroy, on June 15th, 2009 |  Leave a comment  In Q1 2009, stock buybacks came back, driving up equity prices and sparking a rally by dominating a thin market. These equity repurchases were financed from depreciation reserves and bond issues. The return of financed buybacks in a recession indicates the lack of fiduciary responsibility of US corporate directors. June 15th, 2009 | Print Article |  Email Article |  Topics: Corporate Governance, SEC Rule 10b-18, Stock Buybacks | Category: Stock Buybacks, featured | Leave a comment |  Short urlUS Politics By John Schroy, on April 27th, 2009 | One comment  The Crash of 2008 put Barack Obama in the Oval Office and was the culmination of two secular financial trends: a growing US trade deficit that was the root of easy financing for credit cards and mortgages, and the stock buyback movement that manipulated the equity market and that, in recent years, had become dependent upon easy credit rather than corporate profits. Americans now have an untested, inexperienced leader, with strange radical friends and a leftist deficit spending agenda. Obama must govern 300 million people in a serious economic crisis that he has the power to exacerbate. In Obama’s first hundred days, the case of the Lincoln Bible, the Stimulus Bill, staffing problems, and the Maersk Alabama incident, hinted of difficult days to come for the United States. April 27th, 2009 | Print Article | Email Article | Topics: Abraham Lincoln, Anita Hill, Baby Boomers, Barack Obama, Bill Clinton, Brazil, Bretton Woods, CIA, Clarence Thomas, Community Reinvestment Act of 1977, Congressional Budget Office, David Hunt, Fidel Castro, George W Bush, gold standard, Harry Reid, Harvard Law School, Janet Napolitano, Jimmy Carter, John F. Kennedy, Luiz Inacio Lula da Silva, Maersk Alabama incident, Nancy Pelosi, NYSE, Recovery and Reinvestment Act of 2009, reserve currency, Richard Nixon, Rick Warren, SEC Rule 10b-18, Stock Buybacks, sub-prime mortgages, Timothy Geithner, US dollar | Category: US Politics | One comment | Short urlRestoring investor confidence By John Schroy, on April 23rd, 2009 | Leave a comment  The Crash of 2008 revealed weaknesses in the US SEC’s ability to protect the public. SEC commissioners have more incentives to favor issuers and market institutions than ordinary investors. Appointed for five years, after serving many commissioners go back to work for market institutions. A commissioner that is too zealous in investor protection may be unemployed when his or her term expires. This article discusses possible solutions. April 23rd, 2009 | Print Article | Email Article | Topics: Bernard Madoff, Franklin Roosevelt, Lehman Brothers, NYSE, SEC Rule 10b-18, Stock Buybacks, US SEC | Category: US SEC | Leave a comment | Short urlFeatured articles on inside pages
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