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from Breakingviews:

Hertz gears up for another financial spin

By Kevin Allison

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Carl Icahn is just the latest financier to toy with Hertz Global. The activist investor reported an 8.5 percent stake on Wednesday, saying he planned to pressure the $14 billion car rental company over recent management stumbles. But Hertz has been an investor plaything for nearly a century. Automakers, an airline, a 1960s conglomerate, private equity and public investors have all owned the business.

Launched in Chicago in 1918 and bought by its namesake, John Hertz, half a decade later, the car rental operation was swallowed up by General Motors in 1926, a decade before Icahn was born, according to a potted history on the company website. The billionaire activist was a spry 20-something when Hertz made its stock market debut in 1954, a year after being sold to bus-maker Omnibus Corp.

In 1967, it was broadcasting-to-carpets giant RCA’s turn at the wheel. As the stodgy old conglomerate was being dismantled in the 1980s, ownership passed to UAL, the parent company of United Airlines – part of an abortive attempt to diversify out of commercial air travel that also included owning hotels.

from Breakingviews:

Ballmer’s exit value is now Nadella’s to preserve

By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Steve Ballmer’s exit value is now Satya Nadella’s to preserve. Microsoft’s market capitalization swelled by over $100 billion from the day about a year ago when the 34-year veteran of the software giant said he would resign as chief executive until Tuesday, when he stepped down from the board of directors. With Ballmer fading from the picture, maintaining the momentum is now firmly up to new boss Nadella.

from Breakingviews:

Latest blunder hits StanChart where it most hurts

By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Standard Chartered’s latest blunder hits the UK bank where it hurts most. New York State’s Department of Financial Services has slapped a $300 million fine on the emerging markets-focused lender for compliance lapses. It reinforces the disturbing impression that StanChart’s top brass aren’t on top of things.

from Breakingviews:

Holiday email embargo a must-have, not an opt-in

By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Daimler wants to stop email ruining the holidays of its 275,000 employees. So the German carmaker is giving them the right to have all messages received during vacation automatically re-routed, with the sender warned to try again later. In this case, choice may not be the best policy.

from Financial Regulatory Forum:

Effective training a weak link in many compliance programs – survey

By Emmanuel Olaoye and Stuart Gittleman, Compliance Complete

NEW YORK, Aug. 13, 2014 (Thomson Reuters Accelus) - Firms, especially those in the financial services sector, have improved their compliance and ethics training programs but are still being challenged in measuring their programs' effectiveness, two researchers told Thomson Reuters Compliance Complete on Wednesday.

And the people driving the programs, often in chief compliance officer or roles of similar function, are still being challenged by limited resources and difficulties in making a business case for the firm's investment, said the researchers, Mary Bennett and Ingrid Freeden of Navex Global.

from Financial Regulatory Forum:

Internal Audit & the Four Cs: Culture, Conduct, Corporate Governance and Customer Outcomes

By Michael Cowan, Regulatory Intelligence Analyst, Thomson Reuters

NEW YORK, July 30, 2014 - Corporate governance and culture have moved into the mainstream as a result of the financial crisis, and as the global recovery takes hold, governments and regulators are keen to ensure lessons are learned. It is clear, however, that despite the increasing profile of corporate governance with regulators, shareholders and customers, and the effect it has on the health and reputation of firms, it is still an area in which many internal auditors lack a high level of involvement.

Thomson Reuters annual State of Internal Audit Survey, which was published in June, found that 49 percent of internal auditors had no involvement in assessing their firm’s culture, while just over a quarter of internal auditors have not assessed their firm’s corporate governance; regionally, this figure was most concerning for North America, with 32 percent of internal auditors having no involvement in assessing corporate governance. This figure dropped to 18 percent for European respondents, where regulators like the UK Financial Conduct Authority have honed in on the interrelated issues of corporate governance, customer outcomes and conflicts of interest and have stated that they will start assessing culture by looking at relevant areas of a firm’s business and behavior and drawing conclusions from there.

from Edward Hadas:

Not all banks are alike

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Competition is fierce for the Bankers’ Bad Behaviour Award. Rate-rigging, client-fleecing, dishonest documentation, reckless trading and exorbitant pay were all widespread before the 2008 financial crisis, and faulty practices have proven remarkably persistent. It sounds like there is something wrong with all banks. The ethical problem, though, is not universal.

from Breakingviews:

Deutsche/UBS: there’s life in EU bond trading yet

By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Deutsche Bank and UBS have shown there is life in Europe’s bond traders yet. The two banks and Credit Suisse have been losing share to Wall Street since last year, but in the second quarter they hit back. Fixed-income revenue at Deutsche was flat year-on-year, and down just 2 percent at UBS – against a 9 percent average fall at American banks.

from Breakingviews:

Goldman’s new lead director better as chairman

By Antony Currie

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Goldman Sachs has found the right man for the half-right job. The bank tapped Adebayo Ogunlesi to be its new lead director. The former head of client coverage for Credit Suisse might not be the most obvious candidate. For example, he has never led a public company. On balance, though, he’s a good choice. If only Goldman saw fit to call him chairman.

from Breakingviews:

Murdoch calls on European outposts for Time Warner

By Quentin Webb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Rupert Murdoch is calling on European outposts to help in his pursuit of Time Warner. The media mogul’s Twenty-First Century Fox is poised to sell its Sky pay-TV arms in Italy and Germany to Fox’s UK affiliate British Sky Broadcasting. There’s strategic logic to the asset shuffle and the proceeds could help sweeten his $80 billion bid for the owner of CNN and Warner Bros. How Murdoch treats non-Murdoch owners is the linchpin.

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