Can Citigroup’s Directors Ensure Its Investors Receive Future Earnings from New Stock?

(NewsVisual, powered by IntellectSpace) -- In an effort to rebuild its capital resources and to restore its balance sheets, Citigroup Inc (NYSE:C) announced on Wednesday that it will make a $4.5 billion public offering of common stock.

Given the billions of dollars that the bank lost as a result of the subprime mortgage, it’s not surprising that the bank should be replenishing its coffers.

The bank also recently offered an issuance of $6 billion of preferred stock.

"We were pleased to increase the offering size to $4.5 billion in response to strong demand from a broad base of investors," said Citi CFO Gary Crittenden.

"This optimizes our capital structure and further strengthens our balance sheet," he added.

The Directors must now develop a strategic plan that will reverse the bank’s downward decline and that will make certain that the investors’ money results in future earnings for the bank.

Pilots’ Union Could Scuttle the Merger Talks Between United and US Airways

(NewsVisual, powered by IntellectSpace) -- Although other major airlines have merged despite opposition by the pilots’ unions, the deal between United Airlines Inc, which is owned by UAL Corp (NASDAQ:UAUA), and US Airways Group Inc (NYSE:LCC) could be killed in its crib because of union opposition.

"A 'toxic stew' of problems with pilots and other issues at US Airways would imperil any merger between that carrier and United Airlines, the leader of the United pilots’ union said on Tuesday," The New York Times reported in an article.

Yet despite the opposition of the pilots’ union with regard to the Northwest and Delta merger, the deal recently went through anyway, and the key could have been the strong personal ties between the two airlines’ board rooms.

In a similar fashion, the personal relationships between the Directors at United and US Airways could also help to overcome the objections of labor groups in this case, too.

Warren Buffett’s Company Could Be Close to Acquiring American Express, Reports Speculate

(NewsVisual, powered by IntellectSpace) -- With the media rumor-mill suggesting Warren E Buffett’s Berkshire Hathaway Inc (NYSE:BRK) and the American Express Co (NYSE:AXP) are in merger talks, it seems likely that a deal could be struck anytime soon, especially since there exist a series of personal connections between the two companies’ Directors.

"'American Express may be considering eventually to become a private enterprise and become delisted, or become part of Warren Buffett’s empire,' Philip Berman of Berman Asset Management said during the meeting, according to Bloomberg," The New York Times reported in an online article on Wednesday.

Already established friendships could drive the deal.

Baxter CEO Parkinson Suggests Criminal Intent with regard to Heparin Contamination

(NewsVisual, powered by IntellectSpace) -- In what sounds like grounds for a criminal investigation, the head of Baxter International Inc (NYSE: BAX) said in public for the first time that the tainting of the company’s heparin drug was probably deliberate, according to media reports.

"Robert Parkinson, the Chairman and Chief Executive of Baxter International Inc, told a Congressional committee Tuesday its blood thinner heparin appears to have been deliberately contaminated," MarketWatch reported in an online article on Tuesday.

"Baxter recently recalled the blood thinner after it found batches made at a Chinese plant were contaminated with a substance similar to the drug's active ingredient that has been linked to at least 81 deaths," the MarketWatch article added.

Investors will want to know whether Mr Parkinson can help to see the company through this enormous crisis and restore its reputation and financial viability.

GM Corp Makes Tactical Decision to Cut Production of Pickup Trucks and SUVs

(NewsVisual, powered by IntellectSpace) -- In response to a shift in market conditions brought about by rising fuel prices, General Motors Corp (NYSE: GM) announced on Monday that it will curtail the production at its full-size pickup truck and its full-size SUV in order to reflect a downturn in consumer demand.

The company will implement its production cuts in two plants in Michigan and one in Ontario for its full-size truck, and it will cut back on its full-size SUV production in Wisconsin, GM said in its statement.

“With rising fuel prices, a softening economy, and a downward trend on current and future market demand for full-size trucks, a significant adjustment was needed to align our production with market realities,” said GM North America President Troy Clarke.

“This is a difficult move, but we remain committed to retaining and growing our leadership position in the full-size truck market,” he added.

United Airlines and US Airways Could be Contemplating a Merger Deal, Reports Suggest

(NewsVisual, powered by IntellectSpace) -- As climbing fuel costs strain the finances of all the major airlines, United Airlines Inc, which is owned by UAL Corp (NASDAQ:UAUA), is reported to be in merger talks with US Airways Group Inc (NYSE:LCC), and the prospect of the two companies being able to join their cultures appears to be good.

"After seeing its latest prospect slip away on Sunday with the decision of Continental Airlines to end merger talks, United restarted discussions with US Airways about a possible deal, according to people with direct knowledge of the negotiations," The New York Times reported in an article on Tuesday.

Given the close personal connections between these two airlines, a merger could be more workable than with other potential partners.

News Corp’s Acquisition of the Dow Jones Company Pays Off

(NewsVisual, powered by IntellectSpace) -- When its Board of Directors allowed Rupert Murdoch to purchase the Dow Jones Company, News Corp (NYSE:NWS)  assumed a certain amount of risk that now appears to have been worth taking in terms of the current performance of the company’s new assets.

In particular, the Dow Jones property The Wall Street Journal is performing very well in an industry that is plagued by financial losses.

"The increase in individually paid subscriptions to the Journal print version stems from Dow Jones' strategy of 'focusing on growing home-delivery subscribers while reducing other paid circulation,' the company said. Subscriptions totaled 1.35 million for the period," MarketWatch.com reported in an online article on Monday.

“Meanwhile, paid customers of the Journal's online edition grew to 1.04 million from 931,000 in the same period a year earlier,” MarketWatch.com added in its report.

The Directors at News Corp can take a lot of credit for allowing the decision to acquire the Dow Jones properties.

Microsoft and Yahoo Could Still Be In Talks Via a Back Channel

(NewsVisual, powered by IntellectSpace) -- As a deafening silence emanates from Sunnyvale and Redmond, the media speculation began to build on how Microsoft Corp (NASDAQ:MSFT) would respond to the reluctance of Yahoo Inc (NASDAQ:YHOO) to become part of the software-maker’s empire.

At this point, the media’s consensus is that there exists no direct contact between the two sides.

"There was no direct contact between the two sides this past weekend and people close to both camps said they were preparing for the next stage of battle. Microsoft was unlikely to make a move on Monday, however, people familiar with the matter said," The Wall Street Journal reported in an article on Monday.

Yet the Journal’s report fails to consider that the companies could be continuing negotiations through a back channel between Directors from the two companies’ boards.

This back channel would help the two companies to evade the media spotlight.

Kerkorian to Endorse Ford Motor Co’s Turnaround with Tracinda’s Checkbook

(NewsVisual, powered by IntellectSpace) -- In a move that’s likely to be interpreted as a rock-solid endorsement of the auto company’s leadership, the investment company of Kirk Kerkorian, Tracinda Corp, announced on Monday that it plans to buy 20 million shares of the Ford Motor Co (NYSE:F), The New York Times reported.

NewsVisual reported last Thursday that Ford went from a net loss of $282 million in the first-quarter 2007 to a garnering a net income of $100 million in the first-quarter 2008, signifying that the auto maker was now completing its turnaround stage.

Evidently, Mr Kerkorian shares this assessment.

“Tracinda believes that Ford management under the leadership of Chief Executive Officer Alan Mulally will continue to show significant improvements in its results going forward,” The Times article reported that firm’s statement as saying.

These comments can serve to boost Ford’s share price in the markets.  Moreover, given Mr Kerkorian’s connections to other investment companies, his involvement with Ford could inspire other investors to jump on board and buy some of the car company’s stock as well.

Board-Room Ties Could Have Helped Create AT&T and Starbucks Wi-Fi Deal

(NewsVisual, powered by IntellectSpace) -- In a strategic partnership deal that could have been propelled forwarded by personal connections among the two companies’ board members, AT&T Inc (NYSE:T) and Starbucks Corp (NASDAQ:SBUX) announced on Friday that they would be launching AT&T Wi-FiSM service at company-operated Starbucks stores.

The companies have already started the deployment of AT&T Wi-Fi service at Starbucks locations in San Antonio. But this is only the first market to deliver the complete AT&T Wi-Fi experience in what will be a service offered nationwide.

“With the power of our Wi-Fi network, and through our partnership with Starbucks, we’re strengthening our ability to meet the needs of today’s mobile consumer virtually anywhere and everywhere,” said AT&T CEO/Chairman Randall Stephenson in the companies’ joint statement.

The company officials at Starbucks exuded an equal level of enthusiasm:

“We continue to build on the experience we know our customers expect from us,” said Starbucks CTO Chris Bruzzo in the statement.

“By partnering with AT&T as our U.S. Wi-Fi provider, we aim to deliver a better value, greater convenience and seamless connectivity in a mobility centric world to our customers,” Mr Bruzzo added.

Schultz Struggles to Reinvent Starbucks Corp by Jettisoning Failed Projects

(NewsVisual, powered by IntellectSpace) -- Ever since its CEO/President/Chairman Howard Schultz returned to the helm, the Starbucks Coffee Company (NASDAQ:SBUX) has been subjecting itself to a period of relentless self-assessment, with one-time pet projects falling by the wayside as their performance comes under the cold-eyed scrutiny of the company’s number crunchers.

More specifically, Starbucks announced on Thursday that it is restructuring its entertainment business to focus on digital strategy and core content with music and books.

“As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core,” Mr Schultz said in the company statement.

Although he pointed out that the company’s entertainment division has chalked up numerous successes, including eight Grammy Awards, his following comments make clear that the company cannot rest on its laurels:

“Now is the appropriate time to restructure our Entertainment business to better align our efforts with our overall business strategies,” Mr Schultz said.

Investors will want to know if the business judgment of Mr Schultz can help to guide the company toward a turnaround.

Is Microsoft Corp’s Board of Directors Advising Against the Yahoo Buyout Plan?

(NewsVisual, powered by IntellectSpace) -- As the deadline of Saturday imposed by Microsoft Corp (NASDAQ:MSFT) for Yahoo Inc (NASDAQ:YHOO) to enter discussions on the former’s buyout bid quickly approaches, Microsoft has been issuing ambiguous comments as to whether it still wants to acquire Yahoo, leaving many to wonder whether the deal is being abandoned.

This new round of speculation was set off as a result of Microsoft’s fiscal third-quarter earnings report on Thursday that showed the company’s net income declined by 11 percent.

Yet a company spokesman attempted to give a positive spin to the results:

“Our third-quarter results demonstrate the benefit of our diversified business model,” said Microsoft CFO Chris Liddell in a company statement.

“Our broad span across geographies, product categories and customer segments is a tremendous asset and supports our outlook for double-digit revenue, operating income and earnings per share growth for this fiscal year and also for fiscal year 2009,” he added.

According to a report in The Wall Street Journal, however, Mr Liddell appeared to be preparing investors for the abandonment of Microsoft’s plan to buy Yahoo.

"Microsoft Chief Financial Officer Chris Liddell seemed to be preparing Wall Street for the prospect of a deal's not happening. Mr. Liddell said 'speed is of the essence' in completing a deal, but the process 'has been anything but speedy,'" The Journal reported in an article on Friday.

This raises the question as to whether the company’s Board of Directors are pulling the plug on the buyout bid because of the company’s disappointing earnings.

Merrill Lynch to Reform Its Board of Directors, The Journal Reports

(NewsVisual, powered by IntellectSpace) -- After having suffered $6.6 billion in write-downs due to the subprime mortgage debacle, Merrill Lynch & Co Inc (NYSE:MER) has begun the process of reforming its own structures of corporate governance by shortening the electoral terms of the members of its Board of Directors, according to The Wall Street Journal.

The investment-banking firm’s nominating committee recommended that it “eliminate its practice of electing directors of its board to multi-year terms,” The Journal reported in an online article on Thursday.

“The process of ‘destaggering’ boards is being widely adopted in corporate America under pressure from shareholder activists,” The Journal added by way of explanation.

Investors will be concerned, however, that it might not the firm might not be able to attract the best candidates to serve as its Directors if they must stand for election on an annual basis.

Will the firm be able to attract the most experienced individuals with the ability to make sound judgments on complex financial issues?

Ford Motor Co’s Leadership Guide the Company Towards a Successful Rebound

(NewsVisual, powered by IntellectSpace) -- In what appears to be a successful turnaround for an ailing auto company, Ford Motor Co (NYSE:F) reported on Thursday that it went from a net loss of $282 million in the first-quarter 2007 to a net income of $100 million in the first-quarter 2008.

This was a turnaround that had very little to do with luck or chance and had everything to do with the company’s cool-headed leadership skills.

The company’s strategic plan for cost-cutting and growth paid off.

“The results of this quarter are encouraging, particularly our outstanding performance in Europe and South America,” said Ford CEO/President Alan Mulally in the company’s statement.

Mr Mulally gave an indication of how the company’s plan will affect its future growth with the following comments:

“In the past several years, we have substantially restructured these businesses.  We believe this is an indication that our efforts to leverage Ford’s global assets across the world will bear fruit.  Going forward, we remain committed to our key business objectives, including our goal of reaching North America and overall Automotive profitability in 2009 despite the challenging economic conditions.”   
The company’s leadership team has an excellent brain trust at its disposal.

Triarc to Takeover Wendy’s to Form the Third-Largest Restaurant Chain

(NewsVisual, powered by IntellectSpace) -- In a merger deal that could have been initiated by close board-room connections, Triarc Companies Inc (NYSE:TRY), the franchisor of the Arby's restaurant system, is buying out in an all-stock transaction Wendy’s International Inc (NYSE:WEN), the two companies announced on Thursday in a joint statement.

The new company will be the nation’s third-largest quick-service restaurant company, with approximately 10,000 restaurant units and sales of approximately $12.5 billion, the statement said.

The new company expects to focus on breakfast, global expansion for both brands, and growth through future acquisitions and new unit development.

“We believe the combination of Arby’s and Wendy’s will create a powerful new restaurant company and a ‘must own’ restaurant stock with significant upside potential as we execute on the many opportunities we see to expand and improve these two very valuable brands,” said Triarc CEO/Director Roland Smith.

“Through the execution of major operating improvements and the realization of synergies, we expect to generate substantial value for shareholders. We also expect to execute on a number of growth initiatives for the combined organization that should further increase shareholder value,” he added.

The deal could have come together as a result of high-level personal connections between the two companies.

Recent Losses Could Create Pressure for Directors of Northwest and Delta to Abort Merger Deal

(NewsVisual, powered by IntellectSpace) -- As their merger deal was being filed before the Securities and Exchange Commission, Delta Air Lines Inc (NYSE:DAL) and Northwest Airlines Corporation (NYSE:NWA) both announced on Wednesday that they suffered enormous losses due to escalating fuel costs in the first-quarter 2008.

“Northwest’s first quarter performance was negatively impacted by the dramatic increases in the price of oil. Year-over-year our first quarter total fuel expense increased by $445 million, or 57.3 percent,” said Northwest Airlines CEO/President Doug Steenland in the company's statement.

“The sustained high fuel prices represent an extraordinary challenge to Northwest and the entire airline industry. In response to fuel, we have taken a series of actions and will continue to monitor the impacts of fuel prices on our operation and are prepared to take additional actions as necessary,” Steenland added.

The Northwest deal with Delta was meant specifically to help alleviate the fuel cost burden, as well as other costs, for both airlines.

At the time it was officially announced, here’s how the rational for the deal was explained to investors:

“Our need to respond to the pressures of dramatically rising fuel costs and a softening U.S. economy drove us to take a closer look at all options to protect Delta’s future. The merger with Northwest will create an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace,” said Delta CEO Richard Anderson on April 14.

To underscore that the deal’s cost-saving rational had become even more compelling during the interim period, Mr Anderson’s April 14 comments were repeated in Delta’s press release on Wednesday.

In fact, Delta announced in its Wednesday statement that it lost $278 million in the first-quarter 2008.

While the two airlines’ top executives continue to vigorously defend the deal, investors could still raise questions about the deal’s benefits, and they could pressure the airlines’ Directors to withdraw their support from the deal.

Citigroup Directors Narrowly Avert Dismissal from Board by Irate Shareholders

(NewsVisual, powered by IntellectSpace) -- Although after the bank wrote down $38 billion in bad debt the shareholders of Citigroup Inc (NYSE:C) were a raucous bunch at the annual meeting that were screaming for some scalps, all of the bank’s Directors escaped unscathed and were reelected to its board.

The New York Times reported on Wednesday that the shareholder anger was intense:

"Dozens of shareholders — including some employees and even a few fired employees — approached the microphones set up at a hotel ballroom in Midtown Manhattan. They spent hours calling Citigroup executives and board members to task for the company’s lagging stock, its poor customer service, the questionable environmental friendliness of its investments and more," The Times reported in its article.

The Directors must now develop a strategic plan that will reverse the bank’s downward decline and that will address the shareholders’ concerns.

Yahoo’s Directors Could Be Close to Deciding on the Final Fate of the Microsoft Bid

(NewsVisual, powered by IntellectSpace) -- With a strong earnings statement in its favor, Yahoo Inc (NASDAQ:YHOO) could be less vulnerable to a buyout by Microsoft Corp (NASDAQ:MSFT) at a price that Yahoo, and the company’s the Board of Directors, considers to be unacceptably low.

"Yahoo’s chief executive, Jerry Yang, said that the company’s solid performance reaffirmed the board’s conviction that Microsoft’s unsolicited takeover offer undervalues Yahoo," The New York Times reported on Wednesday.

But Yang still left the door open for a new buyout deal with Microsoft:

"Still Mr. Yang said Yahoo remained open to ‘any and all’ alternatives, including a deal with Microsoft," The Times article added.

Yahoo’s comments indicate that the company’s Directors could be close to striking a deal with Microsoft.

Despite Market Conditions, United and Continental Could Still Become Merger Partners

(NewsVisual, powered by IntellectSpace) -- Although the volatility of oil prices and shifting market conditions change the calculations and strategies on an almost daily basis, the next major carriers to merge could still be UAL Corp’s (NASDAQ:UAUA) United Airlines and Continental Airlines Inc (NYSE:CAL).

Rising fuel prices have caused UAL Corp to suffer huge financial losses and, in turn, UAL’s share-value to decline, which changes the playing field for the negotiators.

"UAL was suddenly the smaller airline by market cap, with a value of $1.6 billion, compared with Continental’s $1.7 billion. That change, and new questions about UAL’s overall financial health, could alter the balance of power as the two airlines try to hammer out a deal," The New York Times reported in an online article on Tuesday.

Nonetheless, the personal connections between the Directors at United and Continental could be the key factor that determines the viability of a deal.

Partnership with Apple Helps to Boost AT&T’s Growth in Wireless Revenue

(NewsVisual, powered by IntellectSpace) -- The partnership between AT&T Inc (NYSE:T) and Apple Inc (NASDAQ:AAPL) appears to be paying off for both companies. 

On Tuesday, AT&T reported a 26.7 percent increase in earnings per share for the first-quarter 2008, with a significant portion of that revenue growth coming from its wireless services division.

“Total wireless revenues increased 18.3 percent versus the year-earlier first quarter to $11.8 billion,” the company said in its statement.

More specifically, AT&T’s statement attributed that increase to “average monthly revenues per subscriber.”

And a significant factor for that particular area of growth had everything to do with AT&T’s partnership with Apple.

Here’s how The New York Times analyzed the relationship:

"The company, which is the exclusive carrier for Apple’s iPhone, added a net of 1.3 million wireless customers, giving it a total wireless customer base of 71.4 million subscribers. That is an increased pace of growth compared with a year ago. The average monthly revenue a subscriber, a closely watched measure, increased 2 percent, to $50.18," The Times reported in an online article on Tuesday.

Given the fact that this partnership helps both of these companies to generate revenue, it will be important for them to make certain that it remains stable.

Therefore, it’s important that the two companies keep some open channels of communication, such as ones between the companies’ Directors in order to help keep their business relationship functioning at an optimal level.

Newsday Deal Between Tribune Co and News Corp Could Be Close, Reports Say

(NewsVisual, powered by IntellectSpace) -- In what could become a model for future merger deals for the hard-pressed newspaper industry, the Tribune Co (NYSE:TRB) is apparently close to selling its property Newsday to the media empire News Corp (NYSE:NWS), according to The Wall Street Journal.

This deal would consolidate News Corp’s already existing marketshare in the greater New York area, potentially giving the company the ability to exercise new synergies.

“Under the terms being discussed, Newsday would be part of a joint venture with News Corp's New York Post and various non-newspaper assets owned by News Corp, people familiar with the matter said. News Corp. would own the bulk of the combination, with Tribune retaining a stake of less than 5%,” The Journal reported in an article on Tuesday morning.

Although The Journal reports that this deal was pretty much fashioned by the two companies’ top people, Rupert Murdoch and Sam Zell, there are sets of other personal connections between the two companies that could play an important role when the merger occurs, which would make it easier for them to achieve the economies of scale that the deal proposes.

Will Shareholders Attempt to Oust Any of Bank of America’s Directors Because Of Earnings Slump?

(NewsVisual, powered by IntellectSpace) -- In one more blow caused by the subprime mortgage crisis, Bank of America Corporation (NYSE:BAC), the nation’s largest retail bank, reported on Monday first-quarter 2008 net income declined to $1.21 billion from $5.26 billion a year earlier.

"The weakness in the economy and prolonged disruptions in the capital markets took their toll on our performance,” said Bank of America CEO/Chairman Kenneth D. Lewis in a statement.

Mr. Lewis sought to reassure investors that the Bank has a strategic plan in place in order to attain a turnaround when he added the following comments:

“We are continuing to invest in growth initiatives across the company, and believe our core strengths - including our diverse income stream, liquidity and capital - put us in a strong position to withstand the jolts to the system and emerge even stronger when conditions improve."

Yet the Bank’s large institutional shareholders may not be as sanguine regarding its future earnings prospects.  And they may seek to hold some of its Directors accountable for taking on excessive risks.

Just recently, the shareholders of Washington Mutual Inc (NYSE:WM) forced the resignation of one WaMu Director and they were nearly successful in voting down the reelection of several other Directors to the WaMu board.

Yet many of Bank of America’s Directors have strong corporate experience.

Will National City’s Directors Make Certain that The Bank Uses $7 Billion Credit Wisely?

(NewsVisual, powered by IntellectSpace) -- As a measure to bring about its turnaround after the subprime mortgage debacle, the Ohio-based bank National City Corp (NYSE:NCC) could be on the verge of receiving $7 billion in capital funds from a private-equity firm.

"The Cleveland-based regional bank was hammering out final terms of the transaction with a group of investors led by Corsair Capital LLC, a New York private-equity group. The parties were aiming to seal the deal by Monday," The Wall Street Journal reported in an article on Monday.

National City will appoint to its Board of Directors Corsair Capital Vice Chairman Richard E Thornburgh, the Bank said in a statement.

"This strategic raising of equity capital provides National City with the financial flexibility to continue investing in and growing our core businesses, which are delivering solid results, while addressing the asset quality challenges posed by the disruptions in the credit and housing markets," said National City CEO/President/Chairman Peter E Raskind.

Nevertheless, it is necessary for the Bank’s Directors to aggressively exercise their oversight role to ensure that its management team makes prudent decisions with regard to how the new capital is allocated.

Does Microsoft’s Hiring a Lobbying Firm Signal That a Deal with Yahoo is Close?

(NewsVisual, powered by IntellectSpace) -- Based on various news reports that say Microsoft Corp (NASDAQ:MSFT) has hired a lobbying firm to help it win over regulatory approval for it, the long awaited buyout deal of Yahoo Inc (NASDAQ:YHOO) could be imminent.

"The software company, bracing for a regulatory squabble in its takeover bid, recently hired Bryan Cave Strategies to lobby the federal government on the proposed multibillion-dollar deal," The Mercury News reported in an online article last Friday.

Despite the two technology companies’ combative public statements, it’s highly probable that behind-the-scenes talks among the two companies’ Directors were ongoing.

Will Citigroup’s Shareholders Seek to Remove Some of The Bank’s Directors?

(NewsVisual, powered by IntellectSpace) -- Citigroup Inc (NYSE:C) reported on Friday that it sustained a net loss for the 2008 first quarter of $5.1 billion and that it took $6.0 billion in pre-tax write-downs as a consequence of sub-prime mortgage losses.

“Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions. During the first quarter, valuations of our sub-prime related exposures in fixed income markets and leveraged finance assets have further declined and credit costs in our consumer lending businesses have increased,” Citi CEO Vikram Pandit.

Mr Pandit then sought to reassure investors that Citi is not entering into a period of permanent decline by adding the following comments:

“Despite the negative factors in the broader markets, we continue to see strong momentum throughout the organization with robust volumes in many of our products and regions.”

This statement, however, might not go far enough to satisfy the demands of angry shareholders, especially large institutional investors, for accountability from the bank’s Board of Directors.

Just this past week, shareholders of Washington Mutual Inc (NYSE:WM) forced the resignation of one WaMu Director, and they were nearly successful in voting down the reelection of several other WaMu board members.

The strife at WaMu could portend a similar fight at Citi.

Personal Connections Could Be Keeping the Talks Between EA and Take-Two Alive

(NewsVisual, powered by IntellectSpace) -- Electronic Arts Inc (“EA”) (NASDAQ:ERTS) extend the deadline of its buyout offer to Take-Two Interactive Software Inc (NASDAQ:TTWO), the maker of Grand Theft Auto, by a month, according to The New York Times. 

"EA’s offer will now expire on May 16 instead of 11:59 p.m. Friday. As of Thursday, about 6.4 million shares of Take-Two had been tendered, representing roughly 8 percent of Take-Two’s outstanding shares," The Times reported in its article.

The close personal connections between the members of both EA’s and Take-Two’s Boards of Directors could serve to keep the merger negotiations going.

Google’s Directors Help to Keep the Company on a Profitable Course

(NewsVisual, powered by IntellectSpace) -- At a time when companies in the financial sector are announcing record losses, Google Inc (NASDAQ: GOOG) is chalking up robust profits that would be considered fabulous even if the country wasn’t in its current recession.

Google reported that its first-quarter 2008 profit increased 30 percent over last year’s.

"Our ongoing innovation in search, ads, and apps helped drive healthy growth globally across our product lines, yielding another strong quarter for Google," said Google CEO Eric Schmidt in the company’s statement. 

His following comments indicate that the company’s profitability is not attributable to luck, but by intelligent business decisions by its leadership team:

"As we integrate DoubleClick into our advertising platform, we see exciting new ways to improve the user experience and increase value for our advertisers and partners.  Also, while exercising operational discipline, we continue to explore opportunities that add value to users everywhere and to Google in the long term."

The members of Google’s Board of Directors can take credit for their role in promoting this strategic plan.

JPMorgan Chase Directors Allow the Bank to Raise Billions in New Capital

(NewsVisual, powered by IntellectSpace) -- In an effort to shore up its balance sheets after billions were siphoned off from bad mortgages, JPMorgan Chase & Co (NYSE:JPM) will raise “$6 billion in its biggest offering of perpetual preferred stock”, according to a report by Bloomberg News.

"New York-based JPMorgan, the third-biggest bank in the U.S., has posted about $10 billion of asset writedowns and credit losses since the start of the subprime-mortgage turmoil early last year," the Bloomberg article reported.

Regulatory law requires all banks to maintain capital reserves at a certain level in order to remain solvent if borrowers default on their loans.

The JPMorgan Board of Directors could have decided that by raising the $6 billion in preferred stock and recapitalizing the banks now that it would help to keep the financial markets from becoming too panicky over recent losses.

The markets are