Archives For Business News


Newsweek will eventually be online-only.

Have you ever read an iPad edition of a magazine? I really like it. My three favorites are Fortune, Sports Illustrated, and Southern Living (yes, I read Southern Living).

I would look for more magazines to go this route in the future. The world is changing.

This is some good stuff from Peter Elkind and Doris Burke: The Last Days of MF Global. I will warn you: it’s long.

Bottom line: John Corzine sunk MF Global. Yep, you read that right.

This is a great idea:

The Gents Place Puts a Modern Twist on Barbering

My introduction to the Gents Place was through a Facebook ad that offered a free cut, shampoo and hot towel treatment—a $35 value—in exchange for my name, phone number, e-mail address and preferred social network. Who could resist? While waiting for my turn at the shop in downtown Leawood, Kans., I took advantage of the Wi-Fi access to catch up on the news on my iPad. Since the chop was free, I opted for a $10 add-on, a lathered neck shave with a straight razor. Ah, nice.

When I got home I mentioned the experience to my Facebook followers. Next day I got a message via LinkedIn from Davis, the 29-year-old founder of the Gents Place. He personally connects with every new client who provides a contact via LinkedIn, Google+ or Twitter. “I realized pretty early on that our business is social, by its very nature,” he says. There’s no better way “to connect like-minded guys in the local community and create long-term relationships.”

Think about how social networking could impact other “old line” businesses…

Just read this morning that AT&T is ending its unlimited data plans. I was on the unlimited plan but never used that much data.

This paragraph illustrates the issue:

Carriers, such as AT&T and Verizon Wireless, have long chafed at having to spend billions of dollars to build and maintain networks only to watch Internet companies like Google Inc. and device makers like Apple Inc. collect most of the profits for using them. The pressure on carriers has grown more acute with the rise in use of smartphones like the iPhone, essentially mini computers that make mobile Internet use easy and put a heavy toll on networks.

I can understand that.

The change won’t affect me and my family. What about you? The article mentioned people switching to Sprint because they still have unlimited data plans. But, I have heard they are MUCH slower than AT&T and Verizon. Besides, it’s just a matter of time before Sprint changes their policy too.

Have any of you been following the MF Global debacle? I have. At least what I have read in the Wall Street Journal (the latest here). It’s simply unbelievable. How does $1.2 billion in customer funds vanish? These are customer funds, mind you.

As I understand it (if I’m wrong, please correct me), these customer funds are no different from a customer brokerage account at say Merrill Lynch or Charles Schwab. So, it would be like going to check your account balance one day and your account being empty.

I’m not sure why John Corzine and the other executives are not behind bars right now. He and the other executives at MF Global should at least be required to sell all their possessions and put that money towards what they stole from their clients. That would go a lot further than Corzine’s “contrite” attitude about the whole deal.

By now, you all are probably familiar with the MF Global story so I won’t go into the details here (if you’re not familiar, Google is your friend). For fun, I went to their website this morning just to see what it looked like. The first thing I noticed was this statement on their homepage:

MF Global is a leading broker-dealer with a deep involvement in financial markets around the world. We work closely with clients to create customized trading and hedging solutions in the world’s markets for commodities, listed futures and options, equities, fixed income securities and foreign exchange.

MF Global is a member of more than 70 financial exchanges around the world, and we are a leader by trading volume on a number of these exchanges. We have trading desks around the world, and we facilitate easy connections to all of the major electronic trading platforms as well as direct market access. MF Global is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York.

In addition to executing client transactions, we provide comprehensive clearing and settlement services. Moreover, we are active in providing client financing and securities lending services.

MF Global’s well-regarded research and analysis franchise produces a wide range of actionable insights—from equity research and policy-focused analysis of U.S. legislative and regulatory topics, to commentary on macroeconomic trends and issues driving markets.

And here’s a look at their awards:

I then clicked on their “News” page only to find this:

Page Cannot Be Found

The page you are looking for might have been removed, had its name changed, or is temporarily unavailable.

Click < < Back to return to the page from which you came.

That one made me laugh.

Their entire “Investor Relations” section is also gone.

Here’s a quote from their “About” page:

Working relentlessly to bring our clients superior market access, hardworking insights and powerful trading and hedging solutions. It’s our mission, and throughout our long history, it’s why clients have relied on MF Global to help them capitalize on new opportunities in the world’s ever-changing financial markets.

Bottom line: These companies are always the best right up until they go bankrupt. Leverage can kill.

I hate to see him go: Jobs’ Resignation Marks Storied Career.