SEC Case Against Harrisburg Falls Short For Exempting Finance Pros, Some Say

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

HARRISBURG, PA – No one answered the phone or the door at former Mayor Steve Reed’s home Tuesday nearly 24 hours after the U.S. Securities and Exchange Commission announced a settlement with Pennsylvania’s capital city over fraud charges rooted in activity during his administration.

Some public finance and securities experts saw the settlement – dubbed “toothless” by one – as a warning to municipalities that consequences await them if investors are misled by false or incomplete financial statements from local governments.

Others, however, criticized SEC for failing to hold the city’s hired advisers to account.

“Reed ran the city, (current Mayor Linda) Thompson (is running) the city,” said Mark Schwartz, a former bond lawyer who previously represented Harrisburg City Council on its ultimately rejected bankruptcy petition. “There is a ‘buck stops there’ liability for (city leaders), but the people who do the work are bond lawyers.  These are bonds that never should have been issued.  Reed cannot issue bonds on his own.  Professionals were abysmal in terms of fulfilling their responsibilities to investors and they have gotten off scot-free.  They’ve made millions.”

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/05/fsec_case_against_harrisburg_l.html#incart_m-rpt-1

Bon-Ton Eliminates COO Role

The Bon-Ton Stores said Friday it will eliminate the position of chief operating officer, terminating Barbara J. Schrantz effective Sept. 14.

The York-based department store chain made the announcement in a one-sentence filing with the U.S. Securities and Exchange Commission.

Schrantz joined The Bon-Ton in 2005 as a senior vice president, becoming an executive vice president in 2009 and COO last year.

The company did not immediately explain the move or say who will assume Schrantz’s duties.

Read more: http://lancasteronline.com/article/local/725367_Bon-Ton-eliminates-COO-role.html#ixzz25Q5yxy5V

Hartford Reports $101 Million Loss

English: The skyline of Hartford, Connecticut, USA as seen from across the Connecticut River (Photo credit: Wikipedia)

Bloomberg – Hartford Financial Services, Inc., which employs more than 1,000 workers at an Upper Macungie Township call center, posted a second-quarter loss on the cost of retiring investments made by Allianz SE.

The net loss of $101 million, or 26 cents a share, compares with profit of $33 million, or 5 cents, a year earlier, according to a statement today from Hartford, an insurer based in the Connecticut city of the same name.  Chief Executive Officer Liam McGee struck a deal in April to pay about $2.4 billion to buy back debt and warrants that were issued to Allianz.

McGee is counting on profit from property and casualty policies as the insurer shrinks life operations.  He reached a deal in April to sell an annuities-distribution business and an agreement yesterday for American International Group Inc. to buy Woodbury Financial Services.

“Selling Woodbury is a favorable sign that Hartford is making progress on its divestiture plans,” Meyer Shields, an analyst at Stifel Nicolaus & Co., said in a note today.  “Individual life and retirement plans will probably be more difficult to get done,” and those deals may be necessary to push the stock above $20 a share, he wrote.

Read more: http://www.mcall.com/business/mc-hartford-financial-20120802,0,62163.story

York-Based Bon-Ton Pays New CEO $5.7 Million

The Bon-Ton is in the red, but its new president and chief executive officer will be in the pink.

Brendan L. Hoffman will start with a $5.7 million compensation package, consisting of annual salary, various bonuses and restricted stock.

The York-based retailing chain disclosed the pay Wednesday in a filing with the Securities and Exchange Commission.

In the filing, The Bon-Ton said the former Lord & Taylor CEO will begin with a $1 million salary.

Read more: http://lancasteronline.com/article/local/575163_Bon-Ton-pays-new-CEO–5-7-million.html#ixzz1kih3jxG3