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The article considers a plan by the U.S. Federal Deposit Insurance Corp. (FDIC) to respond to a future failure of a large U.S. bank or financial institution. The plan calls for stockholders of failed banks to lose all equity, while bondholders would face losses as they would receive equity in a new bank created by the FDIC after it places the failed bank in receivership. Foreign subsidiaries of a failed bank holding company would be allowed to operate with funds from the FDIC-owned bank.

The article reports that proposals to give stockholders a larger voice in setting compensation for top executives of financial services companies are garnering less support in proxy votes than they did in 2007. This is considered an odd anomaly, as the financial services industry suffered huge declines in stockholder value in 2007, and its executives are among the most highly-paid in business.

The article examines the corporate financial device known as "rights offerings." These are a means for cash-strapped companies to raise money from their stockholders by creating a tradable security for the right to buy more shares. It is a coercive offer the stockholder must either acquire or sell. Rights offerings carry a stigma as a method of last resort for troubled companies. They have been commonplace in the financial services industry in the crisis created by the U.S. housing bubble.

The article reports that the private equity firm TPG and other investors are close to a deal to invest $5 billion in the troubled savings and loan company Washington Mutual Inc. The deal would allow Washington Mutual to meet pressing capital requirements created by losses in its mortgage loan portfolio. It would also, however, substantially dilute the holdings of the firm's stockholders. The bank's stock has fallen 74 percent in 2007-2008.

The article reports that the financial services firm J.P. Morgan Chase increased its takeover bid for Bear Stearns from $2 to $10 a share. J.P. Morgan Chief Executive Officer James Dimon admitted he had misjudged stockholder resistance to the original offer. The deal allows J.P. Morgan to purchase a 40 percent share of Bear Stearns without prior stockholder approval.

The article discusses Fannie Mae and Freddie Mac. The share prices of both firms have neared lows not seen since 1995. Some expect they will attempt to raise up to $10 million apiece in new capital by selling additional stock, thus diluting existing shareholders. However, Caroline Cai of Pzena Investment Management LLC is among those who believe the firms could obtain capital without selling shares.

The article focuses on an increase in the number of U.S. mutual funds, including American Funds New Economy, that are expecting to make large taxable distributions to shareholders in 2007. A discussion of the impact the increase could have on U.S. investors is presented. The predicted distributions of several funds, including Muhlenkamp, are discussed.

This article discusses the investigation of accounting errors at General Motors Corp. (GM). These errors, including a credit reported as a reduction in stockholder equity, have caused a drop in GM's stock as well as a delay in reporting to the U.S. Securities and Exchange Commission. GM's board of directors expressed displeasure over this delay and the situation has raised questions about the support of GM's Chief Executive Officer Richard Wagoner by GM's board.

The author discusses a decline in the growth of the U.S. labor force and its impact on economic growth in the U.S., including the adaptation of businesses in response to this decline such as an increased focus on returns offered through shareholders and reluctance to invest in employee training.

The article deals with the possibility that the existing shares of stockholders in LinkedIn will be diluted if new shares in employee stock options are sold in the market.

The article reports on the plan of forest-products company Weyerhaeuser Co. to distribute 5.6 billion U.S. dollars in retained earnings and profits to its shareholders in 2010.

The article reports that the British bank HSBC Holdings PLC announced it had successfully raised $18.5 billion through the sale of stock through a so-called rights issue, in which additional shares are sold at a discount to existing stockholders. HSBC is one of the few banks in Great Britain not to have sought government aid during the financial crises.

The article discusses the investment approach of Jeremy Grantham, head of investment management firm GMO. Grantham said a seven-year time investment will do well for stockholders despite the decline in stock prices. According to the article, Grantham believes that the rally will continue until spring of 2009 which will be enough to convince the investors that the bear market is over. Grantham also suggests that the trend may still go up and down consequently despite a good rally.

The author discusses the finances of General Electric (GE), posting a 10% stock gain on December 2, 2008. He notes that GE's conservative funding plans have improved its situation for its shareholders. He also points out the efforts of GE with regard to the government bailout package, planning to issue a benchmark bond backed by the Federal Insurance Deposit Corp.

The article reports on the increase in voting stake by Porsche Automobile Holdings SE in Volkswagen to 35.14% giving it effective control of the largest European car maker by sales as of September 2008. With the move, Porsche will now have a voting majority in shareholders meeting of Volkswagen based on the average shareholder attendance. Porsche spokesman Anton Hunger also said that it plans to raise its stake further to 50% but Volkswagen labor union is accusing Porsche of hostile takeover.

The article reports on the proposal of hedge-fund manager William Ackman to save the U.S. government-sponsored firms, Freddie Mac and Fannie Mae. His plan includes writing off the preferred and common stocks of the companies and providing stockholders 90 cents for each dollar with 10 cents of equity in the new organization. It is considered that Ackman's plan would cause the stocks of the mortgage firms to be worthless.

The article reports that the financial services company Legg Mason Inc. announced a $255 million loss for the first quarter of 2008. The company suffered a decline in assets and writedowns in its money market funds. It will seek to raise $1 billion by selling mandatory convertible securities, further diluting stockholder value. It was the firm's first quarterly loss since it went public in 1983.

The article reports that Microsoft Corp. appears to be ready to make its $43 billion merger bid for Yahoo! Inc. a hostile takeover offer. The company's original offer equals a bit less than $30 a share. Yahoo's board of directors has demanded a price of at least $35 a share. It is believed Microsoft would have to increase its offer to at least $33 a share to make a hostile takeover offer succeed with Yahoo's stockholders.

The article focuses on the actions taken by financial services companies to manage the financial crisis created by the fall in U.S. housing prices. In general, these actions have been good for corporate bondholders, insuring they will be repaid, but have cost stockholders money. The acquisition of Countrywide Financial by Bank of America and Bear Stearns by J.P. Morgan Chase caused major losses for stockholders. The issue of preferred stock by UBS AG diluted stockholder wealth.

The article reports that proposals from activist money manager Children's Investment Fund Management (UK) LLP known as TCI have been rejected by Japan's Electric Power Development Co. (J-Power). The British fund, which is the largest shareholder in J-Power, called on the Japanese electric wholesaler to boost return on equity, sell cross-shareholdings, improve corporate governance, and name 2 TCI employees to its board. The fund said that the proposal would boost shareholder value.

The article reports on the announcement made by investor William Ackman that he holds a 9.6% stake in Target Corp. and intends to pressure the discount retailer to increase shareholder value. The investor said that he believes Target shares are undervalued and plans to talk with management to correct the undervaluation. The shares of Target increased $4.44 to $70.04 in the New York Stock Exchange (NYSE) on July 12, 2007, and then fell to $68.89 on July 16.

Looks at the issue of excessive executive pay and its impact on the value of company stockholders' shares as of April 2006.

The article reports that investor Carl Icahn and Steel Partners LP acquired a significant stake at KT&G Corp. and intend to pressure the firm's management to adopt measures that would boost shareholder value as of February 2005.

Reports that Qwest Communications International Inc. has upped the ante in its quest to take over MCI. Release of a revised offer that directly challenges last week's agreement by MCI to be acquired by Verizon Communications; Decision the board will have to make in picking one over the other; Latest offer which is $24.60 a share with a quicker payout to shareholders; Shareholder reaction.

Examines how the sale of AT&T to SBC is going to complicate the life of those who hold stock in the company. Complexity of the tax situation on shares following years of splits, spinoffs and more; How many of the 2.7 million shareholders have little idea of the initial value of their shares; The work that will be involved in reconstructing records; How shareholders of AT&T might hold shares in as many as a dozen or more companies that the telecom giant spun off or bought up; Possibility that there will be a chance to postpone the tax burden for one year.

Discusses the debate over how much information companies should disclose to investors due to recent corporate scandals. Ways for stock-surveillance specialists and proxy solicitors to improve relations between shareholders and management; Interest of companies in who their investors are and how they will behave under various market circumstances; Impact of stock-exchange reforms on the requirement for shareholder approval of stock-option plans; Tendency for stockholders to oppose board recommendations; Lobbying from the Business Roundtable, an influential group of corporate executives, for standards that would allow companies to communicate directly with their shareholders.

Reports that several large private-equity firms are establishing public funds. Details of recent efforts of Kohlberg Kravis Roberts, Apollo Investments and the Blackstone Group to open public funds; Comments from Marco Masotti, a lawyer with Paul, Weiss, Rifkind, Wharton & Garrison LLP's investment-fund group, regarding the strategy behind the decision to offer public shares; Skepticism expressed by Wilbur Ross of WL Ross & Co. at the motives of private-equity firms; Discussion of investors' expectations regarding rates of return for these products.