A Dead Deal Reveals A Family Feud That's Ripping Apart A Financial Empire
Nov 5, 2014, 03:13 IST
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A Family Feud Is Ripping Apart A Financial Empire (Financial Planning)
Schrosch's financial-advisory business, RCS Capital, abruptly ended a deal to buy Cole Capital from Realty Capital Properties, the flagship company of Schorsch's property and REIT business, reports Charles Paikert.
Schorsch has a controlling interest in both publically traded companies.
"The unexpected move came just days after American Realty Capital replaced its chief financial and chief accounting officer following revelations that accounting errors totaling around $23 million at the company went intentionally uncorrected," according to Paikert.
This unexpected decision suggests that there may be "serious rift" in Schorsch empire. Additionally, the "press release issued by American Realty Capital in response to the termination announcement reads like a mystery novel," writes Paikert.
The Positive Effect Of Oil Price Drops Outweighs The Negatives (Charles Schwab)
Many people are worrying that dropping oil prices are the result of slowing global demand, primarily in China and other Asian countries.
However, Liz Ann Sonders argues that the drop is mostly a product of the increased supply and stronger US dollar. Additionally, she believes that the stronger US dollar has affected oil prices, because there has historically been a strong inverse correlation between the US dollar and oil prices.
"If the drop in prices continues, drilling and extraction activity will weaken, which would hurt not only the energy industry and the states which dominate that industry; but the providers of equipment to it as well. But the positive impact on consumers and businesses outside of the energy sector (which is a larger portion of the US economy) will outweigh the negatives," writes Sonders.
Blended Families Are More Likely To Live Paycheck To Paycheck (Financial Advisor Magazine)
Blended families are significantly more likely to live paycheck to paycheck and have less in savings than traditional families, according to a study by Allianz. "Blended families are a heterosexual couple, either married or living together, with a stepchild or child from a previous relationship," writes Karen Demasters.
"The defining characteristic of blended families is the financial baggage and commitments that they bring from their previous relationships. Blended families ... could be burdened by the past," says Katie Libbe, Allianz Life vice president.
Real-Estate Investors Should Consider Moving To Actively Managed Assets (Investment News)
While most people are worried about the end of quantitative easing, Jacob Frydman argues that the effects have yet to be felt by the overall economy. Because of the bond-buying program, the US will see a significant increase in the overall money supply. More money supply typically means more inflation, "and we have not yet begun to see the inflationary impact which I anticipate," says Frydman.
"As a result, investors should be thinking about shifting their investments from non-rent increasing triple net leased assets to actively managed real estate assets with inflation protected leases where there is an opportunity to enhance value by repositioning, remarketing or developing those assets," writes Frydman.
The Fired Star Texas Broker Finally Found A New Employer In Florida (The Wall Street Journal)
James "Jeb" Bashaw finally found a new job at Florida-based broker-dealer International Assets Advisory LLC, reports Michael Wursthorn.
Previously he was the head of LPL affiliate James E Bashaw & Co., but he was terminated from that role by LPL Financial Holdings on Sept. 24 "for allegedly failing 'to follow firm policies and industry regulations' according to BrokerCheck."
He had plans to move to Memphis-based Wunderlich, but on Oct. 17 negotiations fell through. A spokeswoman for Wunderlich said "the firm and Mr. Bashaw have mutually decided not to pursue a relationship at this time."