<ul><li>The Securities Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword>) has ordered a special audit of the six debt funds shut down by Franklin Templeton in May. </li><li>The special audit is aimed at determining whether there was any collusion between the fund house and the companies which issued the bonds, to defraud investors. </li><li>In total, ₹30,800 crore of investor wealth has been locked in due to the shutdown of <keyword id="9330891" type="UNKNOWN" weightage="20" keywordseo="franklins-six-debt-funds">Franklin’s six debt funds</keyword>. </li><li>The market regulator has tasked a Mumbai-based firm Chokshi &amp; Chokshi LLP to undertake the audit. </li></ul>The Securities Exchange Board of India (SEBI) has ordered a special audit of the six debt funds shut down by Franklin Templeton in May. The audit will be undertaken by a Mumbai-based firm Chokshi &amp; Chokshi LLP, which deals in tax consultancy, accounting, risk and due diligence. According to a <a href="https://economictimes.indiatimes.com/mf/mf-news/sebi-orders-probe-into-dealings-of-debt-funds-shut-by-franklin/articleshow/76147006.cms">report</a> by the Economic Times, the special audit is aimed at finding out whether there was any collusion between the fund house and the companies which issued the bonds, to defraud investors. “The scope is unlimited. They have to look at all aspects and examine if there have been any regulatory violations, whether the fund house followed the rules in spirit, whether there has been circumvention of rules on fund management,” a source told ET. The AMC had announced the shutdown of the following six funds in May: <ul><li>Franklin India Low Duration Fund </li><li>Franklin India Dynamic Accrual Fund </li><li>Franklin India Credit Risk Fund </li><li>Franklin India Short Term Income Plan </li><li>Franklin India Ultra Short Bond Fund </li><li>Franklin India Income Opportunities Fund </li></ul>As a result of the shut down of these six debt funds, Franklin has effectively locked out ₹30,800 crore worth of investments. <div type="Article" hostid="261" msid="75348506" title="A personal finance expert answers the most troubling questions about Franklin Templeton mutual funds" mstype="2" mssubtype="0"></div> In its earnings call in May, <a href="https://www.businessinsider.in/finance/news/franklin-templeton-reassures-indian-investors-that-their-money-is-safe-and-the-delay-in-repayments-is-due-to-cash-crunch/articleshow/75595294.cms">Franklin Templeton reassured</a> its Indian investors, saying that their money is safe, and that the delay in repayments was because of a cash crunch. “There has been a dramatic and sustained fall in liquidity in certain segments of the corporate bonds market on account of the COVID-19 crisis and the resultant lockdown of the Indian economy which was necessary to address the same,” Franklin Templeton India said in a <a href="https://www.businessinsider.in/business/news/covid-19-impact-franklin-templeton-mf-shuts-six-schemes/articleshow/75342209.cms">statement</a> on April 23. However, Indian investors continue to have their doubts – several Delhi-based investors have sent a legal notice to Franklin Templeton <a href="https://economictimes.indiatimes.com/mf/mf-news/investors-demand-reopening-of-schemes-franklin-is-winding-up/articleshow/76128106.cms">demanding</a> re-opening of the six schemes which have been shut down. ‘This is not the end of the world’ Gaurav Mashruwala, a certified financial planner, urged investors to avoid knee-jerk reactions. “Right now, we are in a situation where the economy is not moving. People like you and me should accept the reality, we shouldn’t be complacent. Put the facts out, but the approach I’m taking is this is not the end of the world,” he told Business Insider India. SEE ALSO: <a href="https://www.businessinsider.in/personal-finance/news/a-personal-finance-expert-answers-the-most-troubling-questions-about-franklin-templeton-mutual-funds/articleshow/75348506.cms">A personal finance expert answers the most troubling questions about Franklin Templeton mutual funds</a> <a href="https://www.businessinsider.in/finance/news/franklin-templeton-reassures-indian-investors-that-their-money-is-safe-and-the-delay-in-repayments-is-due-to-cash-crunch/articleshow/75595294.cms">Franklin Templeton reassures Indian investors that their money is safe — and the delay in repayments is due to cash crunch</a> <a href="https://www.businessinsider.in/business/news/without-rbis-help-rupee-value-might-slump-to-80-per-dollar-says-report/articleshow/75273796.cms">Without RBI’s help, Rupee value might slump to 80 per dollar says report</a>

SEBI orders special audit of Franklin’s six debt funds – with ₹30,800 crore wealth locked in, wary investors demand reopening

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c87e8c026289859400f09fb-792/ 2019-03-12 11300.png" border="0" alt="John B Wilson" data-mce-source="Linkedin" data-mce-caption="John B Wilson" data-link="https://www.linkedin.com/in/john-b-wilson/" /><a href="https://www.linkedin.com/in/john-b-wilson/">Linkedin</a>John B Wilson</div></div></div><ul class="summary-list"><li>Investment management firm Franklin Templeton removed investor John B. Wilson from its board of directors after he was among dozens of people indicted by the FBI on Tuesday in an alleged college admissions bribery scheme.</li><li>Wilson served as the lead independent trustee of 112 portfolios in the fund complex of Franklin Templeton Funds. He was also the designated financial expert of Franklin Funds' audit committee.</li></ul>Franklin Templeton, one of the world's largest asset managers, removed investor John B. Wilson from its board of directors, a company spokesperson confirmed, after he was among dozens of executives and Hollywood stars indicted by the FBI in an alleged college admissions bribery scheme. Wilson served as the lead independent trustee of 112 portfolios in the fund complex of Franklin Templeton Funds. He was also the designated financial expert of Franklin Funds' audit committee. Wilson had been named a trustee of Franklin Funds since 2006 and lead independent trustee since 2008. Wilson is also the president and CEO of Hyannis Port Capital, a consulting and private-equity firm investing in micro-cap private companies. The company didn't reply to a request for comment from Business Insider. In the recently unveiled college bribery scheme, Wilson was <a href="https://www.businessinsider.com/college-admissions-cheating-scandal-finance-executives-charged-2019-3">accused of </a>conspiring to "bribe Jovan Vavic, the USC water polo coach, to designate his son as a purported recruit to the USC men's water polo team, thereby facilitating his admission to USC," according to court documents. He also "sought to use bribes to obtain the admission of his two daughters to Stanford University and Harvard University as recruited athletes," according to the documents.Wilson was charged with "conspiracy to commit mail fraud and honest services mail fraud" in the Southern District Court of Texas.Franklin Templeton has already found Wilson's replacement. Current independent trustee Edith E. Holiday was named lead independent trustee, and current independent trustee, Terrence J. Checki was named Chair of the Audit Committees, the company spokesperson said.High-flying financiers and Hollywood celebrities are among those <a href="https://www.businessinsider.com/felicity-huffman-lori-loughlin-charged-college-admissions-scandal-2019-3" target="_blank" rel="noopener">accused of paying bribes</a> to get their children into elite universities including Georgetown, Stanford, and Yale. Some parents are accused of having their children recruited as Division 1 athletes, regardless of athletic abilities, while others are accused of having stand-ins take SAT and ACT exams for their children. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/mcdonalds-filet-o-fish-season-scales-skyrocket-march-lent-catholic-christian-2017-3">Here's why McDonald's Filet-O-Fish sales skyrocket in March</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/Cm7E3Otr-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

Asset manager Franklin Templeton removed John B. Wilson&#160;from its board after he was caught up in the college admissions bribery scheme

Some members of multilevel-marketing company Young Living are making questionable claims about 'essential oils' curing cancer and coronavirus

<ul><li><keyword id="45008" type="CITY" weightage="20" keywordseo="Tata-Power">Tata Power</keyword> completed the acquisition of 51% stake in TP Central <keyword id="6357961" type="LOCATION" weightage="20" keywordseo="odisha">Odisha</keyword> Distribution Ltd (TPCODL) for ₹178.5 crore.</li><li>The shares of the company climbed over 4% on June 2.</li><li>Tata Power has a market cap of nearly ₹10,697.38 crore. </li><li>The acquisition will see Tata Power taking over the power supply business of five cities in Odisha. </li></ul>The shares of Tata Power, a subsidiary of Tata Group, climbed over 4% within a few minutes of trading on June 2 after the company completed acquisition of 51% stake in TP Central Odisha Distribution Ltd (TPCODL) for ₹178.5 crore. Tata Power has a market cap of nearly ₹10,697.38 crore. At 12:10 am, the shares were trading 4.18% higher at ₹41.10 a piece on the BSE. <div type="image" title="Tata power share price" msid="76150589" hostid="261"></div> Meanwhile, the company is hoping to raise about ₹3,000 crore from divestment of non-core operations and restructuring the renewable energy business as it aims to cut the debt by around 40% in the current financial year. “Our attempt is to reduce the debt to the levels of ₹25,000 crore by the end of this fiscal year from ₹44,000 crore; it is an indicative target. We are looking at various means to do it. We have already started our divestment process,” <a href="https://economictimes.indiatimes.com/industry/energy/power/tata-power-eyes-3k-cr-divestment-revamp-of-green-assets-to-cut-debt/articleshow/76143531.cms">Managing Director Praveer Sinha told ET</a>. ‘<keyword id="250122" type="COMPANY" weightage="20" keywordseo="CESU">CESU</keyword> tie-up a huge development for Tata Power’ Tata Power said that the Grid Corporation of Odisha (<keyword id="297737" type="COMPANY" weightage="20" keywordseo="Gridco">GRIDCO</keyword>) would hold the remaining 49% stake in TPCODL, which operates Central Electricity Supply Utility of Odisha (CESU). However, now Tata Power has taken over the management of CESU, and will now be responsible for the distribution and retail supply of electricity in Odisha's five circles consisting of Bhubaneswar, Cuttack, Puri, Paradeep and Dhenkanal. In the fourth quarter ended March 31, Tata Power posted a two-fold jump in its consolidated net profit at ₹475 crore. As per the agreement, the company will retain all the existing employees of CESU and will govern them by their existing policy structure. "Our tie-up with CESU is a huge development for Tata Power. We are committed to provide reliable, affordable and quality power supply along with superior customer service, backed by innovative technology. The success of our Delhi, Mumbai and Ajmer distribution businesses are testament to this fact," Tata Power CEO &amp; MD Praveer Sinha said in a statement. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/sebi-has-ordered-a-special-audit-of-the-six-debt-funds-shut-down-by-franklin-templeton-in-may/articleshow/76148899.cms" data-type="tilCustomLink">SEBI orders special audit of Franklin’s six debt funds – with ₹30,800 crore wealth locked in, wary investors demand reopening</a> <a href="https://www.businessinsider.in/india/news/pm-modi-speech-highlights-during-cii-anniversary/articleshow/76149631.cms" data-type="tilCustomLink">‘India will get its growth back’, says a confident PM Modi in an address to top industry leaders</a> <a href="https://www.businessinsider.in/india/news/india-coronavirus-news-and-updates-for-june-2-2020/articleshow/76149118.cms" data-type="tilCustomLink">India records more than 8,000 cases for the third straight day— over all tally inches closer to 2 lakh</a>

Tata Power shares jump 4% after company takes over Odisha’s power distribution and announces plans to reduce debt

<ul class="summary-list"><li><keyword id="11896289" type="UNKNOWN" weightage="60" keywordseo="investing" source="Orion">Investing</keyword> legend <keyword id="11983909" type="UNKNOWN" weightage="60" keywordseo="mark-mobius" source="Orion">Mark Mobius</keyword> thinks <keyword id="11984417" type="UNKNOWN" weightage="60" keywordseo="chinese-stocks" source="Orion">Chinese stocks</keyword> looks set to start recovering from a selloff. </li><li>"We are probably reaching the bottom or near the bottom," he told the newspaper. </li></ul>Investing powerhouse Mark Mobius says the selloff in Chinese stocks looks about finished and told the South <keyword id="11892748" type="UNKNOWN" weightage="60" keywordseo="china" source="Orion">China</keyword> Morning Post it's time to look at companies that will benefit from regulatory policies from Beijing. "Obviously, the Chinese government wants the market to perform better. We are probably reaching the bottom or near the bottom and the market is probably going to recover," Mobius said in an <a href="https://www.scmp.com/business/banking-finance/article/3174769/mark-mobius-father-emerging-markets-says-itss-time-buy?module=lead_hero_story&amp;pgtype=homepage">interview with the South China Morning Post</a> published Tuesday. The MSCI China Index, which covers about 85% of Chinese equities, slumped by 14% in the first three months of this year. Chinese stocks have slid in part by the Chinese government's crackdown on the technology sector that has hurt shares of heavyweights including <a href="https://markets.businessinsider.com/stocks/tctzf-stock">Tencent</a> and <a href="https://markets.businessinsider.com/stocks/baba-stock">Alibaba Group</a>. The regulatory crackdown led to the process of ride-hail app <a href="https://markets.businessinsider.com/news/stocks/didi-stock-price-china-delisting-ride-hail-nyse-investigation-ipo-2022-4">DiDi Global preparing to delist from the US stock market</a>. "These big boys were basically dominating so many fields," Mobius told the newspaper. "It's a good idea to look at the medium and small companies, because they are going to be benefiting from government policies to create a more level playing field." Mobius, who was behind the world's first emerging-markets fund at Franklin Templeton Investments, said it's best to steer clear of index funds as indexes tracked are dominated by big tech companies that may be subject to more regulatory action. He said shares of individual small and mid-sized companies with low debt and solid earnings are better bets as they will benefit from <a href="https://www.scmp.com/business/china-business/article/3173684/chinas-regulator-renews-pledge-widen-market-access-keep?module=inline&amp;pgtype=article">new regulatory policies</a> from Beijing. The newspaper noted China's securities regulator is working on <a href="https://www.scmp.com/business/china-business/article/3173684/chinas-regulator-renews-pledge-widen-market-access-keep?module=inline&amp;pgtype=article">widening investors' access to the stock market</a> and on resolving a dispute with the US over the <a href="https://markets.businessinsider.com/news/stocks/chinese-stocks-baidu-alibaba-us-audits-sec-regulation-prevent-delistings-2022-4">financial auditing of Chinese companies listed in the US.</a>

Legendary investor Mark Mobius says Chinese stocks are near their bottom and it's time to buy small and mid-sized names

<ul class="summary-list"><li>Shawn Wooden is at the forefront of an investor-driven push for more diversity on Wall Street.</li><li>He's required disclosures that revealed a lack of Black and Hispanic talent at big money managers.</li></ul>When giant asset managers get a phone call from a state treasurer located more than 100 miles from Wall Street, they know they're in for some tough questions. That's because the money managers seeking to do business with Connecticut's $44 billion pension system have to go through Shawn Wooden, the sole trustee of those assets. In the almost three years since he's been sworn in as state treasurer, Wooden, 52, has turned up the pressure on money managers to not only disclose their diversity statistics but make them public. And they've done just that — even when they know that what they disclose won't be pretty. "Most of these institutions are not where they could or should be on this," Wooden said in an interview with Insider. "So it's uncomfortable." Many companies publish some level of workforce-diversity data in annual corporate-responsibility reports, but those figures rarely disclose specifics on the representation of Black and Hispanic staff at asset-management firms, especially at the executive level. Wooden requires would-be managers to disclose data on a much more granular level — showing the gender, racial, and ethnic makeup of their workforces by job type and seniority level over a three-year period — before he makes a decision on whether to invest in their funds.In his role, he has persuaded industry giants such as <a href="https://www.businessinsider.com/carlyle-group-executive-diversity-data-inclusion-black-latinx-asian-2021-5">The Carlyle Group</a>, <a href="https://www.businessinsider.com/morgan-stanley-investment-managements-diversity-is-still-at-2019-levels-2021-9">Morgan Stanley Investment Management</a>, and Wellington Management to respond to his requests, which have revealed glaringly low numbers of Black and Hispanic staff in senior roles.Connecticut has requested this kind of workforce data from money managers and other business partners with the state since the early 2000s, Wooden said. But those who know him say he can take a big chunk of the credit for pushing asset managers to disclose uncomfortable truths. "He is very smart and strategic in his investment decisions for the state in our pension fund, but he's also an extraordinary advocate and champion of equity in our social and economic system," Sen. Richard Blumenthal (D-Conn.) said of Wooden. "He's really a leader in a national movement for more transparency and disclosure." Wooden has his work cut out for him. Almost 84% of executives employed by the US asset-management industry were white, while almost 75% were male, a recent <a href="https://www.ici.org/system/files/attachments/pdf/21_news_di_chart_01.pdf">survey</a> by the Investment Company Institute and the compensation-data provider McLagan indicated. The organizations polled 65 asset-management firms representing $21.9 trillion in assets under management. While Connecticut was an early mover, other investors, Congress, and even regulators have now taken a keen interest in firms' diversity track records. In recent years, the Securities and Exchange Commission has <a href="https://www.sec.gov/news/press-release/2018-7">begun asking</a> that regulated entities voluntarily disclose their diversity data to the agency. Meanwhile, institutional investors, and the investment consultants who advise them, have also ratcheted up the pressure they're putting on the asset managers they invest in to do better at diversity and inclusion. In Washington, DC, legislators have repeatedly put Wall Street chief executives <a href="https://fortune.com/2021/05/27/congress-grills-wall-street-on-ceo-diversity-again/">in the hot seat</a> over a lack of diversity. Wooden, who was sworn in on January 9, 2019, is currently the only Black elected state treasurer in the U.S. as well as the only Black elected official in New England who is serving statewide. Beyond his work overseeing the state's pension assets, he's at the forefront of a larger movement to improve diversity in the financial-services industry. In a May 2020 <a href="https://www.courant.com/opinion/op-ed/hc-op-wooden-racism-george-floyd-0530-20200530-g6ttjede4ng5fpvefeh5q23syu-story.html">op-ed</a> in the Hartford Courant, Wooden detailed how, as the father of Black teenagers, he'd had "the talk" with his elder son, prompted after Wooden was "pulled over for allegedly turning without signaling.""Many Black parents have accepted the necessity of warning their kids about driving while Black, and what to do in the event they are stopped. It is a dreaded ritual for us — it's so difficult to explain to our children the danger they may face when venturing out beyond our reach," Wooden wrote. The treasurer called out the "inconsistent protections" of the criminal-justice system for Black Americans in the op-ed, which was published soon after the murder of George Floyd. But he also said that Wall Street had its own role to play in the country: "It is time for the wealthy and privileged to start pulling the levers of power they hold. Wall Street and corporate America, I'm speaking to you."He mentioned that Franklin Templeton, a money manager for Connecticut's pension funds, "took swift and transparent action" in firing Amy Cooper last year, after a video went viral of her calling 911 on Christian Cooper, a Black bird-watcher in Central Park.Months after the piece was published, Wooden and the Ford Foundation formed a coalition of CEOs in financial services, including Jenny Johnson, Franklin Templeton's chief executive, to tackle racial economic disparities. Members of the Corporate Call to Action working group <a href="https://portal.ct.gov/-/media/OTT/Press-Room/Press-Releases/2021/PR021121-CorporateActionCoalitionEquityOpportunityCommitmentDiscloseWorkforceData.pdf">pledged</a> to disclose the diversity data they filed with the Equal Employment Opportunity Commission this year, including AllianceBernstein, Franklin Templeton, Invesco, and Wellington Management. The companies joined other members of the coalition, including BlackRock, Goldman Sachs, Morgan Stanley, and State Street Global Advisors, that already disclose this workforce data. All private employers with 100 or more employees are required to report this data to the commission annually. The data provides a snapshot of firms' demographic breakdown by race, ethnicity, and gender, as well as across job categories.Insiders say the Hartford native brings a perspective and a passion for the issue that was seeded decades ago."He's always been active in creating pipelines of diversity," said Arunan Arulampalam, who ran against Wooden for state treasurer in 2018 and now serves as the chief executive of Hartford Land Bank. "He grew up as a Black man in Hartford. We are a city that has experienced generations of disinvestment, which is related, I think, to the fact that we've become an increasingly Black and brown city."<h2>'Really bright, but really intense'</h2>Wooden, the youngest of six children, participated in Hartford's desegregation busing program in the third grade. He went on to earn a four-year scholarship to Trinity College, a private liberal-arts college located southwest of downtown. After Trinity, Wooden got involved in politics, working for Carrie Saxon Perry during her time as mayor of Hartford. Perry was the first Black woman to be elected mayor of a major New England city and had been a mentor to Wooden, said Anthony Gray, the president and CEO of Austringer Capital Group, a real-estate-development company in Madison, Wisconsin. Gray has known Wooden for more than 30 years, since the treasurer's Trinity College days."He's been working on racial-equity issues since we were kids, and he was an important part of the electoral machine for Carrie Saxon Perry," Gray said. "She was a friend and a mentor to him since he was a very young man, but she also ran on a platform of diversity, equity, and inclusion — and that was long before we even knew what those words meant."Wooden earned a law degree at New York University, where he became close friends with another trailblazer — Rep. Hakeem Jeffries, the chair of the House Democratic Caucus. In 1997, Wooden began working at law firm Day, Berry &amp; Howard LLP (now called Day Pitney LLP). In 2001, he left Hartford for New York, after his then-wife was hired as an internist at New York-Presbyterian Hospital. At the time, an editorial writer for the Hartford Courant lamented the departure of the "Can't Miss Kid" and said he was "arguably the brightest prospect in a thin pool of young lions looking to ascend politically in the city." Wooden, who is now divorced, continued to work for Day Pitney during his time in New York and after his return to Hartford in 2007. Prior to running for state treasurer in 2018, he was a partner at Day Pitney and led the firm's public-pension-plan investment practice. Arulampalam, who also served as the former deputy commissioner for Connecticut's Department of Consumer Protection, said he was a summer intern at Day Pitney when he first met Wooden years ago. During his time at Day Pitney, Wooden was active in increasing the diversity at the firm, as well as in the legal profession more broadly, Arulampalam said. "Diversity and equity have mattered to him all of his life," he said. "I remember thinking then that when partners talked about individuals who had a commitment to diversity, they all talked about Shawn. They mentioned that he took paternity leave when one of his kids was born. He came up a lot as someone who cared deeply about diversity and tried to act it out."Gray, who worked as an associate at Day Pitney from 2007 to 2010, said he saw two sides of Wooden's personality when they worked together. "It's funny. As a person, he is pretty laid-back," Gray said. "As an attorney, he was really bright, but really intense."But that intensity served Wooden well, Gray added. "In bond work, you get it wrong, and a whole business can go bankrupt. The margin for error is close to zero," Gray said. "You don't get to make mistakes. He practiced in a really complex area of law and made it look easy. He's a really sharp guy."Gray said Wooden has applied that level of discipline to his political career."In politics, you have to develop a message and stay on message," he said. "To do it well, it's harder than it looks, and Shawn is exceptionally good at it. He's just an incredibly disciplined person."<h2>Wielding his power as an investor</h2>Wooden acknowledged that he has benefited from the work of his predecessors. While some firms, such as BlackRock, have recently begun to <a href="https://www.blackrock.com/corporate/literature/continuous-disclosure-and-important-information/blk-eeo1-data-disclosure.pdf">voluntarily publish</a> data on the ethnic and racial diversity of their workforce, public officials in Connecticut have been pushing companies to disclose this data even before Wooden's tenure as treasurer.Wooden's predecessor, the former State Treasurer Denise Nappier, laid the foundation for work he continues. Arulampalam said Nappier also had a reputation for holding companies that wanted a slice of Connecticut's business accountable to diversity standards. "She was really a leader in pushing her firms to improve their own numbers," Arulampalam said. Wooden said his efforts have gotten a boost from how the treasurer's office is structured in his home state. Given his authority as sole trustee of the Connecticut Retirement Plans and Trust Funds, a system that comprises six state pension funds and nine state trust funds, he can make diversity disclosures a priority for vendors seeking business with the state without the support of legislation, he said."There's more flexibility for me to proceed" when it comes to incorporating these policies into the pension system's operation than in some other states, Wooden said. For some state treasurers who care about these issues, "it becomes helpful to have legislation passed and making certain things requirements," he explained. So far, the work that Wooden and others have done to increase transparency in the financial-services industry has appeared to yield results — or at least concrete commitments to improve. Financial firms that have publicly shared the diversity data they reported to the Equal Employment Opportunity Commission, such as BlackRock and <a href="https://www.citigroup.com/citi/about/esg/download/2020/diversity_2020_english.pdf">Citigroup</a>, have set workforce-representation goals with timelines and have agreed to undergo racial-equity audits of their businesses.Wooden is taking his mission to advance racial equity beyond Wall Street. On June 30, he signed into law <a href="https://portal.ct.gov/-/media/OTT/Press-Room/Press-Releases/2021/PR070121----CtMakesHistoryTodayCtBabyBondsforCtChildrenintoPoverty.pdf">CT Baby Bonds</a>, a program aimed at narrowing the wealth gap by creating savings accounts for children born into poverty. The measure made Connecticut the first state in the nation to pass so-called baby bonds. Blumenthal has cosponsored federal legislation on baby bonds, which inspired the Connecticut law. "His spearheading the baby-bond proposal in effect creates a nest egg that helps disadvantaged people seek the American dream," Blumenthal said. Tina Byles Williams, the CEO, CIO, and founder of Xponance, a money manager in Philadelphia with more than $12 billion under management, called Wooden's diversity requirements laudable. "We need allocators like the treasurer," said Byles Williams, who counts Connecticut Retirement Plans and Trust Funds as a client. "He insisted on transparency and accountability. His legal background coupled with a passion and an interest around moving the needle, with respect to diversity — both of those need to be housed in the person, and I think that is what we are seeing with Treasurer Wooden." Blumenthal said allocators such as Wooden ultimately hold the most sway when it comes to driving change. "States have power because they are an investor," Blumenthal said. "Sometimes these asset-management companies care more about their investors than they do members of Congress." And Wooden isn't afraid to wield that power. Connecticut has pushed for more revelatory data on the number of minorities at some of the industry's biggest players, and some of them have played ball. Earlier this year, Morgan Stanley Investment Management pitched the state on a $375 million investment in a real-assets fund. As part of that, the firm filled out Connecticut's compliance review, disclosing that Black and Hispanic employees accounted for 2% and 3%, respectively, of US employees at the executive level in its investment-management unit. A Morgan Stanley spokesperson declined to comment in September when Insider first reported the details. Other managers have reported similar figures when answering the state's compliance-review questions as part of their own pitch for the state pension's money or as part of continued due diligence each year as an existing manager. In May, Insider reported that the private-equity giant The Carlyle Group employed less than 3% of US staffers at the managing-director level or above who were Black. At Wellington Management, a money manager in Boston that oversees $1 trillion in assets, Black employees accounted for 0.75% of US executive-level employees, as of December 2019. Wellington declined to provide more recent figures to Insider, but it said the firm plans to release global workforce-diversity data in a transparency report in January.While firms may not be eager to share their workforce data with Connecticut — and have their paltry diversity figures laid bare — Wooden said getting the data was "typically not a problem" in the end. He added that leaning into that discomfort was a critical first step for managers to change. "It demonstrates a level of commitment and interest, and it leads to more accountability for the institution," he said.He recalled only one money manager that required more prodding. "They clearly wanted our business but had never disclosed demographic data," Wooden said. "I got involved and said, 'I don't know what your numbers are going to look like. It's probably not good, but that's beside the point. We're requiring this because we believe in the importance of transparency.'" Wooden said the firm eventually coughed up the numbers, but he declined to name the manager. "I have no desire, unless I need to, to embarrass people," he said. "I'm trying to move the needle here on these issues. It's a success story because they advanced as an organization. Yes, they were pushed to do so, but I think they will agree that they will be better for it." Dakin Campbell contributed to this report.

Connecticut's Treasurer, Shawn Wooden, is holding powerful institutions accountable for their abysmal diversity stats. For him, it's personal.

<ul><li>Global investment banking firm <keyword id="63460" type="CITY" weightage="20" keywordseo="JP-Morgan">JP Morgan</keyword> will invest ₹17 crore ($2.25 million) to impart skill training to over 4,800 graduates in India. </li><li>This is in partnership with the Shahani Academic &amp; Global Empowerment (SAGE) Foundation, a non-profit trust focused on skills training. </li><li>Under the initiative, the foundation will impart domain skills and communication, sales and problem solving skills via online and classroom courses. </li><li>This includes upskilling in the advanced technology and innovative concepts to enable the underprivileged youth to get entry-level jobs. </li></ul>Global investment banking firm JP Morgan will invest as much as ₹17 crore ($2.25 million) to impart skill training to over 4,800 graduates in India. This is in partnership with the Shahani Academic &amp; Global Empowerment (SAGE) Foundation, a non-profit trust focused on skills training. This includes upskilling in the advanced technology and innovative concepts to enable the underprivileged youth to get entry-level jobs in the Banking and Financial Services (BFSI) sector. “Businesses across sectors are facing challenges in employing skilled talent. This program will help bridge the gap between employee skills and employer needs. We look forward to high-yielding results,” said Maneesha Chadha, Head of Philanthropy for J.P. Morgan, India. The grant announcement comes at a time when it is alleged that the JP Morgan India unit helped a local company divert funds, thereby violating foreign investment rules. The Supreme Court has now permitted the Enforcement Directorate (ED) to attach the company’s properties <a href="https://economictimes.indiatimes.com/news/politics-and-nation/ed-gets-sc-nod-to-attach-jp-morgan-india-properties/articleshow/75909681.cms" data-type="tilCustomLink">worth ₹187 crore</a> in this case. This is the second grant that SAGE Foundation has received from J.P. Morgan. Under the initiative, the foundation will stress on domain skills and communication, sales and problem solving skills via online and classroom courses. The BFSI sector is aggressively investing in technology and the digitalization of its products and services. Hence, the skill training in the domain will help graduates find jobs in the banking sector. “With the demand for work-ready professionals with deep industry knowledge on the rise, it is imperative that educational institutions alter their approach and provide students with real and tangible skills that are relevant to the workforce of today,” said Akhil Shahani, MD, Shahani Group. See also: <a href="https://www.businessinsider.in/stock-market/markets/news/sebi-has-ordered-a-special-audit-of-the-six-debt-funds-shut-down-by-franklin-templeton-in-may/articleshow/76148899.cms">SEBI orders special audit of Franklin’s six debt funds – with ₹30,800 crore wealth locked in, wary investors demand reopening</a> <a href="https://www.businessinsider.in/careers/news/barclays-morgan-stanley-jll-and-others-hiring-senior-executives-during-the-coronavirus-lockdown/articleshow/76147578.cms">Barclays, Morgan Stanley, JLL and others hiring senior executives during the coronavirus lockdown</a>

JP Morgan sets aside ₹17 crore to upskill 4,800 Indian graduates for banking jobs

<ul><li>The benchmark Nifty was at 9,600-level in May 2017, nearly three years ago from now. Since then, it has delivered returns of just 4.4%, barely beating the interest rate on savings bank accounts.</li><li>During the same period, four stocks – Nestle, RIL, Britannia and HUL have doubled investor wealth despite the COVID-19 crisis impacting them.</li><li>Nestle was the top performer, delivering an increase of almost 150% since May 2017.</li></ul>The COVID-19 crisis has caused the Indian economy to shut down for more than two months, wiping out lakhs of crores of investor wealth in the process. However, four companies have weathered the storm and have doubled the investor wealth in the last three years. The four companies – Britannia, Nestle, Hindustan Unilever (HUL) and Reliance Industries (RIL) have gained at least 100% between May 2017 to now. For context, the benchmark Nifty was at 9,621 on May 31, 2017. It closed at 10,046 on June 9. During this period, crossed 12,000 and came down again. <div type="image" title="Four stocks doubled in three years." msid="76296319" hostid="261" caption="&amp;lt;p&amp;gt;Four stocks doubled in three years.&amp;lt;/p&amp;gt;"></div> <div type="Article" hostid="261" msid="76217175" title="Markets resume rally as bank stocks spurt; log weekly gains" mstype="2" mssubtype="0"></div> Nestle led with an increase of almost 150% in investor wealth Food and beverages conglomerate Nestle led the charge with an increase of 150% in investor wealth. Its share price rose from ₹6,657 in May 2017 to ₹16,570 as of market close on June 9. Nestle’s rapid growth was fuelled by the launch of 71 products since the Maggi ban in 2015 and strengthening distribution, according to <a href="https://www.business-standard.com/article/companies/return-of-maggi-volume-and-value-surpasses-pre-ban-level-of-2014-120060401532_1.html">experts</a>. RIL’s growth was driven by its foray into the telecom sector The Mukesh Ambani-led RIL has also made big gains over the last three years, primarily driven by its foray into the telecom sector. In the last seven weeks alone, Ambani has raised over ₹1 lakh crore via investments in Jio Platforms. <a href="https://economictimes.indiatimes.com/markets/stocks/news/ril-40th-agm-ril-market-cap-soars-50000-times-in-40-years-mukesh-ambani/articleshow/59694881.cms">Ambani’s claim</a> of RIL doubling investor wealth every 2.5 years remains true – RIL was valued at ₹5 lakh crore in 2017, which has now <a href="https://www.businessinsider.in/business/news/mubadala-to-buy-1-85-pc-stake-in-jio-platforms-for-rs-9093-6-cr/articleshow/76205654.cms">increased</a> to ₹10.39 lakh crore as of market close on June 9, 2020. Britannia bakes biscuits away to deliver consistent ‘multi-bagger’ performance Biscuit-maker Britannia is baking biscuits away to increase investor wealth. Since 2017, it has doubled investor wealth, cornering a market cap of ₹8.2 lakh crore. Over the past decade, it has <a href="https://economictimes.indiatimes.com/markets/stocks/news/covid-beater-this-biscuit-maker-beat-the-blues-sailed-to-a-52-week-high/articleshow/76151032.cms">increased</a> investor wealth by 2,000%. HUL’s preparedness for changes in consumer demands keeps its investors happy HUL, an 87-year old company, remains agile and prepared to address changes in consumer demands. This has kept it on a growth path and led to an increase in investor wealth over the course of its history – so much so that its parent company Unilever <a href="https://economictimes.indiatimes.com/markets/stocks/news/unilever-raises-stake-in-hul-to-67-buyback-leaves-dalal-street-aflush-with-rs-19220-crore/articleshow/20919527.cms">increased</a> its stake from 52.5% to 67.3% in 2019. Investors remain happy with HUL as its shares have <a href="https://www.businessinsider.in/business/corporates/news/hul-share-price-gains-even-while-company-warns-of-lower-profits/articleshow/76175124.cms">seen a jump</a> despite the company issuing a profit warning. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/inside-indias-50000-crore-scheme-to-woo-electronics-manufacturing-including-smartphones/articleshow/76207462.cms">Inside India’s ₹50,000 crore scheme to woo electronics manufacturing including smartphones</a> <a href="https://www.businessinsider.in/finance/news/yes-bank-is-looking-to-raise-10000-crore-through-fpo-with-kotak-securities-axis-capital-and-sbi-capital-reportedly-to-be-key-players/articleshow/76153458.cms">Yes Bank is looking to raise ₹10,000 crore through FPO – with Kotak Securities, Axis Capital, and SBI Capital reportedly to be key players</a> <a href="https://www.businessinsider.in/stock-market/markets/news/sebi-has-ordered-a-special-audit-of-the-six-debt-funds-shut-down-by-franklin-templeton-in-may/articleshow/76148899.cms">SEBI orders special audit of Franklin’s six debt funds – with ₹30,800 crore wealth locked in, wary investors demand reopening</a>

These four stocks have doubled investor wealth in the last three years

<ul><li>Picked up by <keyword id="6356684" type="UNKNOWN" weightage="20" keywordseo="patanjali">Patanjali</keyword> Ayurved during insolvency proceedings in December 2019, the <keyword id="53343" type="COMPANY" weightage="20" keywordseo="Ruchi-Soya">Ruchi Soya</keyword> stock has rocketed to ₹1,431 from just ₹16.9 on January 27 when it was relisted. </li><li>The massive surge in its share price might have made its investors happy, but analysts are sounding the alarms and seeking a probe by the Securities Exchange Board of India (SEBI). </li><li>In the 104 trading sessions since relisting, Ruchi Soya’s market capitalisation has grown from ₹500 crore to ₹42,700 crore. </li></ul>The Ruchi Soya stock is a tale of multibaggers that will be told for years to come. Investors who haven’t been able to buy the stock are regretting, while the lucky ones rejoice. Analysts, however, want a probe into the stock by the Securities Exchange Board of India (SEBI). Ruchi Soya is a tale of springing back to life after nearly dying. One of the largest manufacturers of edible oil, Ruchi Soya went bankrupt last year, only to be <a href="https://www.businessinsider.in/business/news/patanjali-ayurved-completes-acquisition-of-bankrupt-ruchi-soya-for-rs-4350-cr/articleshow/72873511.cms">picked up by Patanjali Ayurved</a> during insolvency proceedings in December 2019. The restructuring that followed helped Ruchi Soya shed over ₹9,300 crore of debt. The company’s stock was relisted on January 27, after which it surged by 8,400% in 104 trading sessions, going from ₹16.9 to ₹1,431. <div type="image" title="Ruchi Soya share price in 2020" msid="76688592" hostid="261" caption="&amp;lt;p&amp;gt;Ruchi Soya share price in 2020&amp;lt;/p&amp;gt;"></div> <div type="Article" hostid="261" msid="76294547" title="These four stocks have doubled investor wealth in the last three years" mstype="2" mssubtype="0"></div> Why did the Ruchi Soya stock grow by 8,400%? So what’s behind this massive rally in the company’s stock price? A hope of a turnaround? 99.03% (nearly 29 crore shares) of Ruchi Soya’s shares are held by fifteen Patanjali group companies, leaving 0.97% (28 lakh shares) to the public. Out of these, only 10,000-15,000 shares are traded daily on an average, making it difficult for retail investors to buy in. This has sent the stock price rocketing from just ₹16.9 to ₹1,431 as of June 29, resulting in a growth of over 84 times. One of the factors contributing to the seemingly never-ending rally in the Ruchi Soya stock is the scarce supply of shares, and people <a href="https://economictimes.indiatimes.com/markets/stocks/news/after-8818-rally-in-103-days-ruchi-soya-faces-red-flag-analysts-want-a-sebi-probe/articleshow/76683745.cms">clamouring</a> to buy whatever shares they can get their hands on. This cycle has been running almost non-stop for over 100 days now. “Low free float is the primary reason for the surge in the shares of Ruchi Soya. Sebi should do some investigation and try to identify who are the buyers and why are they acquiring these shares,” independent market analyst Ambareesh Baliga <a href="https://economictimes.indiatimes.com/markets/stocks/news/after-8818-rally-in-103-days-ruchi-soya-faces-red-flag-analysts-want-a-sebi-probe/articleshow/76683745.cms">told</a> Economic Times. Another analyst too called for an investigation by SEBI. “SEBI should investigate why promoters are holding 99% stake even after five months of relisting,” Arun Kejriwal, director at Mumbai-based investment advisory firm Kris, told ET about the demand-supply situation that is driving up the share price of Ruchi Soya. Reverse merger of Patanjali on the cards? Another factor that has fuelled this demand for the company’s shares is the hopes of a reverse merger of Patanjali Ayurved with Ruchi Soya, which would give shareholders an early entry into the emerging fast-moving consumer goods (FMCG) player. The insolvency resolution plan put forward by the Patanjali group included the reverse merger of Patanjali Consortium Adhigrahan with Ruchi Soya. The Baba Ramdev-led Patanjali group is <a href="https://health.economictimes.indiatimes.com/news/industry/patanjali-group-eyes-to-be-rs-40000-crore-company-in-2020-21-aims-to-be-largest-fmcg-firm/73602461">targeting</a> a turnover of over ₹40,000 crore next year, and ₹50,000 to ₹1 lakh crore in the next five years. With this, it is taking an aim at Hindustan Unilever (HUL) which is the current leader in the FMCG segment. Ruchi Soya’s current market capitalisation stands at ₹42,700 crore, a 84 times jump from its ₹500 crore market cap in January 2020. In comparison, HUL is currently trading between ₹2,150-2,200, and has a market capitalisation of over ₹5 lakh crore. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/sebi-has-ordered-a-special-audit-of-the-six-debt-funds-shut-down-by-franklin-templeton-in-may/articleshow/76148899.cms">SEBI orders special audit of Franklin’s six debt funds – with ₹30,800 crore wealth locked in, wary investors demand reopening</a> <a href="https://www.businessinsider.in/stock-market/markets/news/heres-what-will-move-sensex-and-nifty-50-this-week/articleshow/76684812.cms">Macro-economic data, auto sales and a continued rise in COVID-19 cases – here’s what will move Sensex and Nifty 50 this week</a> <a href="https://www.businessinsider.in/stock-market/markets/news/indusind-bank-godrej-apollo-tyres-some-of-the-biggest-gainers-in-june-are-stocks-where-promoters-have-raised-stakes/articleshow/76353024.cms">IndusInd Bank, Godrej, Apollo Tyres – some of the biggest gainers in June are stocks where promoters have raised stakes</a>

The Ruchi Soya stock has grown by 8,400% in 104 days – while investors rejoice, analysts want a SEBI probe

<img src="https://static-ssl.businessinsider.com/image/5bda00813815073ace4b088d-2400/gettyimages-80344698.jpg" alt="truckers" /><ul class="summary-list"><li>$67 million hedge fund Prescience Point predicted in April 2017 that <a href="https://www.businessinsider.com/category/trucking">trucking</a> giant <a href="https://www.businessinsider.com/category/celadon">Celadon</a> was going to zero.</li><li>Some 2-1/2 years later, the short-seller's call turned out to be prescient. The Indianapolis-based company <a href="https://www.businessinsider.com/celadon-trucking-bankrtupcy-truckers-stranded-2019-12">told its 3,800 employees on Monday</a> it was shuttering.</li><li>Eiad Asbahi, the founder of the Louisiana-based fund, told Business Insider that a number of things signaled possible issues at Celadon, including its accounting practices, nepotism among hires at the executive level, and the use of a regional firm for its auditor. </li><li><a href="https://www.businessinsider.com/prime">Click here for more BI Prime stories</a>. </li></ul>The <a href="https://www.businessinsider.com/celadon-trucking-bankrtupcy-truckers-stranded-2019-12">biggest bankruptcy in truckload history</a> was unsurprising to a small Louisiana-based hedge fund. Celadon Group filed for Chapter 11 bankruptcy on Monday and plans to shutter the company entirely, the firm's CEO said in a statement. That comes roughly 2-1/2 years after Eiad Asbahi's Prescience Point Capital Management predicted the firm's stock price would fall to zero. Late last week, the US Securities and Exchange Commission <a href="https://www.sec.gov/news/press-release/2019-253">charged two former Celadon executives</a> with accounting fraud: former president and chief operating officer William Eric Meek, and former chief financial officer Bobby Peavler. While Asbahi original prediction that the firm would go to zero in a quarter or two did not materialize that quickly, his call of an eventual bankruptcy was still prescient. He told Business Insider that there were multiple red flags that led to his firm taking a short position against the trucking firm, which grossed $1 billion a year as recently as 2015.Celadon could not be reached for a comment. The company's attorney did not immediately respond to a phone and email inquiry.Read more: <a href="https://www.businessinsider.com/why-trucking-industry-slowdown-trucker-job-loss-2019-7">Thousands of truck drivers have lost their jobs this year in the trucking 'bloodbath.' Here's what's behind the slowdown in the $800 billion industry.</a>"Some of the most prominent," according to Asbahi, included: "numerous, severe accounting discrepancies"; transactions between the company and an off-balance sheet entity called 19th Capital; the selection of a regional auditor, BKD; and several hires of vice presidents and managers who were all in the same fraternity at Franklin College. <h2>'Actually worthless' </h2>Asbahi told Business Insider that while initially sniffing out opportunities in the transportation sector, his interest in Celadon piqued after industry insiders pointed to unusual happenings the crossborder trucking company. That "prompted us to start digging into the company's financial statements," Asbahi told Business Insider.What caught Asbahi's attention initially were transactions between Celadon and an off-balance sheet entity called 19th Capital, according to his 2017 report.Celadon's leadership disclosed in a 2016 earnings report that it would form a new off-balance sheet entity allowing the retirement of an asset financing group called 19th Capital. The company valued the entity at more than $27 million, or 4.5 times times its initial investment from just over a year ago.<img src="https://static-ssl.businessinsider.com/image/5deea131fd9db27802116f96-1872/screen shot 2019-12-09 at 22932 pm.png" alt="celadon" />Asbahi speculated the entity, based on truck valuations, was "actually worthless." Nevertheless, the retirement triggered a management payday of around $4.6 million.That 19th Capital discovery was part of a larger scheme that the SEC centered much of its case on. Peavler and Meek, the two former C-suiters charged by the SEC, allegedly inflated the values of trucks the company bought and sold to bolster its net income and earnings per share. These truck prices were valued at double or triple fair market value, the SEC <a href="https://www.sec.gov/news/press-release/2019-253">wrote</a>.The scheme allegedly cost shareholders <a href="https://www.indystar.com/story/news/2019/12/09/celadon-trucking-what-we-know-bankruptcy-and-federal-fraud-case/2629482001/">more than $60 million</a>.<h2>'Nepotism and a lack of accountability are rampant'</h2>Asbahi was an outsider to trucking - and unfamiliar with the industry's characteristics.The $800 billion industry's largest companies are often helmed by the children of the founders or have descendants dominating the boards. Those in the trucking often view "family-owned" fleets <a href="https://www.fleetowner.com/blog/truck-driver-satisfaction-isn-t-all-about-pay">as a positive</a>, rather than a red flag for favoritism. Instead, Asbahi highlighted that was a potential downfall of Celadon. A former employee featured in his 2017 report said Celadon leadership "fostered a toxic work culture where nepotism and a lack of accountability are rampant," Asbahi wrote.<img src="https://static-ssl.businessinsider.com/image/5df10cc3fd9db2283d526fd3-2400/2019-12-09t205213z2lynxmpefb81eqrtroptp4usa-trade-usmca-mexico.jpg" alt="FILE PHOTO: Trucks wait in a long queue for border customs control to cross into the U.S. at the Otay border crossing in Tijuana, Mexico April 2, 2019. REUTERS/Jorge Duenes/File Photo" />After the death of founder Steve Russell, the top management became dominated by men who had graduated in the mid-2000s from Franklin College, a liberal arts college 20 miles south of Indianapolis with just over 1,000 students. Many of these men were former fraternity brothers, according to the former employee.Family members were in key positions, including the founder's son as president of logistics and the former CEO's 29-year-old nephew running the international business.Read more: <a href="https://www.businessinsider.com/trucking-bloodbath-celadon-employees-no-pto-health-insurance-2019-12">Bankrupt trucker Celadon told laid-off employees that they've lost health insurance and won't receive unused-vacation-time pay - read the full letter here</a>Because of these collegiate or blood relations, the former employee told Asbahi that there were no consequences for poor work performance. "You have a very incestuous organization that is unlike any other public company that I've ever seen," the former employee said in the report. <h2>The aftermath</h2>Asbahi followed his initial 35-page report, in which he called the trucking company "a house of cards on the brink of collapse," with two more in 2017.The New York Stock Exchange delisted Celadon <a href="http://otp.investis.com/clients/us/celadon/SEC/sec-show.aspx?Type=html&amp;FilingId=12676993&amp;CIK=0000865941&amp;Index=10000">in April 2017</a> after the trucking giant said it would need to amend reports dating back to mid-2014. Most of the banks covering Celadon dropped their coverage; the company has not filed a quarterly report since before the short-seller report.In lieu of a typical earnings call, former CEO Paul Will hosted a conference call <a href="http://otp.investis.com/clients/us/celadon/SEC/sec-show.aspx?Type=html&amp;FilingId=12038447&amp;CIK=0000865941&amp;Index=10000">in May 2017</a>. He announced a new COO and president, intentions to file a 10-Q in several weeks, and a plan to overhaul the auditing process. These new hires were "both substantive and symbolic of re‐focusing our company on core trucking operations," Will said. "We took these actions because the trucking business is a main driver of cash generating opportunity and it was underperforming our standards."<a href="https://www.ttnews.com/articles/chairman-ceo-paul-will-steps-down">In June 2017,</a> Will stepped down. CFO Peavler left the following year. Celadon's stock began a free fall from around $9 per share in 2017 to the low single-digits in 2018 to pennies this month.<img src="https://static-ssl.businessinsider.com/image/5ddec1fefd9db21a125b2008-2400/ap608114550636.jpg" alt="truckers trucks" />Not once did Celadon or its new leadership get in touch with the Baton Rouge-based financier, he said. "We did not have any interaction with the company either before or after the report," Asbahi said in the email. "Given our confidence in our thesis and the severity of the fraud being perpetrated, we felt that contacting management would be a fruitless exercise. Celadon executives made zero attempts to contact or meet with us after the report was published." Are you a former Celadon employee? Email the reporter at rpremack@businessinsider.com. <h2>Learn more about why truck drivers are saying their industry is in a "bloodbath" - and what key executives think need to change</h2><a href="https://www.businessinsider.com/celadon-trucking-bankrtupcy-truckers-stranded-2019-12">A truckload giant just filed for bankruptcy, and it leaves nearly 3,000 truck drivers jobless</a><a href="https://www.businessinsider.com/cummins-confirms-2000-layoffs-at-truck-engine-manufacturer-trucking-downturn-2019-11">America's largest truck-engine manufacturer just announced 2,000 layoffs - and it's another sign of the trucking 'bloodbath' that's slamming the $800 billion industry</a><a href="https://www.businessinsider.com/trucking-recession-ch-robinson-chrw-q3-earnings-2019-10">'Bad from every angle': America's trucking recession is now slamming one of the $800 billion industry's largest companies</a><a href="https://www.businessinsider.com/trucking-ch-robinson-ceo-interview-brokerage-2019-12">We asked C.H. Robinson's new CEO everything about the brokerage giant's strategy for the years ahead - from tech recruiting in Minnesota to the trucker shortage to the trucking recession. Here's the full interview.</a>

The bankruptcy of trucking giant Celadon left nearly 4,000 jobless. The short-seller who said it would hit zero more than 2 years ago told us what tipped him off.

<div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5612d843bd86ef1c008bf5ba-1280-847/pavlichenko.jpg" alt="lyudmila pavlichenko" data-mce-source="Wikimedia Commons" />Wikimedia CommonsLyudmila Pavlichenko</div></div></div>In early 1941, Lyudmila Pavlichenko was studying history at Kiev University, but within a year, she had become one of the best snipers of all time, credited with 309 confirmed kills, 36 of which were German snipers.Pavlichenko was born in 1916 in a small town in Ukraine.She was described as an independent, opinionated tomboy who was "unruly in the classroom," as <a href="http://www.smithsonianmag.com/history/eleanor-roosevelt-and-the-soviet-sniper-23585278/" target="_blank">the Smithsonian</a> notes.At the age of 14, Pavlichenko's family had relocated to Kiev, where she worked as a metal grinder in a munitions factory.Like many young people in the Soviet Union at that time, Pavlichenko participated in <a href="https://en.wikipedia.org/wiki/DOSAAF" target="_blank">OSOAVIAKhIM</a>, a paramilitary sporting organization which taught youths weapons skills and etiquette. "When a neighbor's boy boasted of his exploits at a shooting range," said Pavlichenko according to <a href="http://www.smithsonianmag.com/history/eleanor-roosevelt-and-the-soviet-sniper-23585278/" target="_blank">the Smithsonian</a>."I set out to show that a girl could do as well. So I practiced a lot."On June 22, 1941, Hitler broke ties with Joseph Stalin and German troops poured into the Soviet Union. Pavlichenko rushed to join the Soviet army and defend her homeland, but she was initially denied entry into the army due to gender."She looked like a model, with well-manicured nails, fashionable clothes, and hairstyle. Pavlichenko told the recruiter that she wanted to carry a rifle and fight. The man just laughed and asked her if she knew anything about rifles," <a href="http://soviet-awards.com/digest/pavlichenko/pavlichenko1.htm" target="_blank">Soviet-Awards.com</a> wrote of Pavlichenko's effort to join the military.<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/561919d39dd7cc02308b5837-872-602/screen shot 2015-10-10 at 9.59.11 am.png" alt="lyudmila pavlichenko" data-mce-source="Screengrab" />ScreengrabLyudmila Pavlichenko</div></div></div>Even after Pavlichenko presented her marksman certificate and a sharpshooter badge from OSOAVIAKhIM, officials still urged her to work as a nurse. "They wouldn't take girls in the army, so I had to resort to all kinds of tricks to get in," <a href="http://www.smithsonianmag.com/history/eleanor-roosevelt-and-the-soviet-sniper-23585278/" target="_blank">explained</a> Pavlichenko.Eventually, the Red Army gave her an "audition" by giving her a rifle and showed her two Romanians downrange who were working with the Germans. She shot down the two soldiers with ease, and was then accepted into the Red Army's <a href="https://en.wikipedia.org/wiki/25th_Rifle_Division_(Soviet_Union)" target="_blank">25th Chapayev Rifle Division</a>.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56191c8fbd86ef135c8b5bec-800-546/66a8462451eccaf66ce1169b7139f76d.jpg" alt="Lyudmila Pavlichenko" data-mce-source="Screengrab" data-mce-caption="Lyudmila Pavlichenko" />ScreengrabLyudmila Pavlichenko</div></div></div>Pavlichenko then shipped out to the battle lines in Greece and Moldova. In very little time she distinguished herself as a fearsome sniper, <a href="http://www.todayifoundout.com/index.php/2012/06/during-wwii-lyudmila-pavlichenko-sniped-a-confirmed-309-axis-soldiers-including-36-german-snipers/" target="_blank">killing 187 Germans in her first 75 days at war</a>.Snipers in these battles fought between the enemy lines, often far from their companies. It was extremely dangerous and careful work, as she had to sit perfectly still for hours on end to avoid detection from enemy snipers. After making a name for herself in Odessa and Moldova, Pavlichenko was moved to Crimea to fight in the battle of Sevastopol.Her reputation earned her more dangerous assignments, eventually facing off one on one with enemy snipers. The Smithsonian reports that she dueled and <a href="http://www.smithsonianmag.com/history/eleanor-roosevelt-and-the-soviet-sniper-23585278/?no-ist" target="_blank">killed 36 enemy snipers</a>, some of whom were highly decorated themselves."That was one of the tensest experiences of my life," Pavlichenko <a href="http://www.smithsonianmag.com/history/eleanor-roosevelt-and-the-soviet-sniper-23585278/" target="_blank">reportedly said</a>.<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5612dcafbd86ef18008bf710-1200-441/1200px-mosin-nagant_m1891_-_ryssland_-_am.032971.jpg" alt="Mosin Nagant M1891" data-mce-source="The Swedish Army Museum via Wikimedia Commons" data-mce-caption="Pavlichenko's gun, the Mosin Nagant, held only five shots, was bolt-action, fired a .30 calibre round, and kicked like a mule." data-link="https://en.wikipedia.org/wiki/Mosin%E2%80%93Nagant#/media/File:Mosin-Nagant_M1891_-_Ryssland_-_AM.032971.jpg" /><a href="https://en.wikipedia.org/wiki/Mosin%E2%80%93Nagant#/media/File:Mosin-Nagant_M1891_-_Ryssland_-_AM.032971.jpg">The Swedish Army Museum via Wikimedia Commons</a>Pavlichenko's gun, the Mosin Nagant, held only five shots, was bolt-action, fired a .30 calibre round, and kicked like a mule.</div></div></div>She spent eight months fighting in Stevastopol, where she earned a praise from the Red Army and was promoted. On several occasions she was wounded, but she was only removed from battle after taking shrapnel to the face when her position was bombed by Germans who were desperate to stem the tide of her mounting kill count.She had become a well known figure in the war, as a protagonist in the Red Army's domestic propaganda, and the scourge of German soldiers all over the Eastern front. The Germans even went so far as to address her over loud speakers, offering her comfort and candy should she defect and join their ranks.Pavlichenko became a sniper instructor and was soon invited to the White House.<div class="KonaFilter image-container display-table center"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5612d80dbd86ef20008bf631-860-633/lyud.jpg" alt="lyudmila pavlichenko elanor roosevelt" data-mce-source="Library of Congress" data-mce-caption="Lyudmila Pavlichenko, famous Russian sniper, with Mrs. Roosevelt and Justice Robert Jackson." data-link="http://www.loc.gov/pictures/resource/fsa.8d07943/" /><a href="http://www.loc.gov/pictures/resource/fsa.8d07943/">Library of Congress</a>Lyudmila Pavlichenko, famous Russian sniper, with Mrs. Roosevelt and Justice Robert Jackson.</div></div></div>She became the first Soviet soldier to visit the White House, where she met with President Franklin Roosevelt and first lady, Eleanor Roosevelt.Pavlichenko became angry at the US media for the blatantly sexist way they questioned her about the war. Her look and dress was criticized. When she was asked if she wore make up to battle she responded, "There is no rule against it, but who has time to think of her shiny nose when a battle is going on?"<div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5612d6d6bd86ef0e008bf60f-840-684/lyudmila-pavlichenko.jpg" alt="lyudmila pavlichenko" data-mce-source="Wikimedia Commons" data-mce-caption="Lyudmila Pavlichenko wears an officers uniform in 1943." />Wikimedia CommonsLyudmila Pavlichenko wears an officers uniform in 1943.</div></div></div>"I wear my uniform with honor. It has the Order of Lenin on it. It has been covered with blood in battle. It is plain to see that with American women what is important is whether they wear silk underwear under their uniforms. What the uniform stands for, they have yet to learn," she told Time Magazine in 1942.Pavlichenko was <a href="http://www.todayifoundout.com/index.php/2012/06/during-wwii-lyudmila-pavlichenko-sniped-a-confirmed-309-axis-soldiers-including-36-german-snipers/" target="_blank">one of 2,000</a> female snipers who fought for the Red Army in World War II, and one of the 500 who survived.Her score of 309 kills likely places her within the top five snipers of all time, but her kills are likely much more numerous, as a confirmed kill has to be witnessed by a third party.After the war, Pavlichenko went back to finish her Master's Degree at Kiev University. In April of this year, Pavlichenko's story was immortalized in a film called "Battle for Sevastopol" in Russia and "Indestructible" in the Ukraine. The film was <a href="http://www.businessinsider.com/afp-lady-death-wwii-sniper-film-aims-for-hit-in-russia-and-ukraine-2015-4" target="_blank">shot during the 2013 EuroMaidan</a> protests in Ukraine, and financed by both Russian and Ukrainian backers at the start of a conflict that would become bloody and divisive, however the film is a testament to the outstanding career of Pavlichenko, a common hero among both parties.<div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5612d9bd9dd7cc23008bf71e-853-352/screen shot 2015-10-05 at 4.11.00 pm.png" alt="battle of sevastopol" data-mce-source="Youtube" data-mce-caption="A still depicting Pavlichenko in " data-link="https://www.youtube.com/watch?v=qh9mTLqW1O4" /><a href="https://www.youtube.com/watch?v=qh9mTLqW1O4">Youtube</a>A still depicting Pavlichenko in a film called "Battle for Sevastopol."</div></div></div>

Meet the world's deadliest female sniper who terrorized Hitler's Nazi army

<div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static4.businessinsider.com/image/5130e06f6bb3f70f3e000009-400-300/warren-buffett-1985-1.jpg?maxX=400" border="0" alt="warren buffett 1985" width="400" /></div><keyword id="6358963" type="PERSON" weightage="60" keywordseo="Warren-Buffett">Warren Buffett</keyword> in 1985</div>
Warren Buffett's annual letter to shareholders comes out this evening, and it's guaranteed to be a must-read.
But Buffett's <a href="http://www.berkshirehathaway.com/letters/letters.html">entire archive of letters</a> make for great reading.
So what ones should you read?
To get a handle on this, we talked to software developer and Warren Buffett aficionado <a href="http://www.seatgeek.com">Steve Ritter</a>, who has read every letter and goes to Berkshire's annual meetings each year.
He gave us his top 5 must-reads.
Buffett's <a href="http://www.berkshirehathaway.com/letters/1977.html">1977 letter</a> is the earliest one available in the <a href="http://www.berkshirehathaway.com/letters/letters.html">Berkshire Hathaway online archive</a>.
Right away, Buffett tackles the notion that earnings performance is a good way to measure managerial performance:
Except for special cases (for example, companies with unusual debt-equity ratios or those with important assets carried at unrealistic balance sheet values), we believe a more appropriate measure of managerial economic performance to be return on equity capital. In 1977 our operating earnings on beginning equity capital amounted to 19%, slightly better than last year and above both our own long-term average and that of American industry in aggregate. But, while our operating earnings per share were up 37% from the year before, our beginning capital was up 24%, making the gain in earnings per share considerably less impressive than it might appear at first glance.
In <a href="http://www.berkshirehathaway.com/letters/1983.html">his 1983 letter</a>, Buffett wrote about the importance of "economic goodwill" in the companies he invested in:
We own several businesses that possess economic Goodwill (which is properly includable in intrinsic business value) far larger than the accounting Goodwill that is carried on our balance sheet and reflected in book value...
...You can live a full and rewarding life without ever thinking about Goodwill and its amortization. But students of investment and management should understand the nuances of the subject. My own thinking has changed drastically from 35 years ago when I was taught to favor tangible assets and to shun businesses whose value depended largely upon economic Goodwill. This bias caused me to make many important business mistakes of omission, although relatively few of commission.
The next year, in 1984, Berkshire highlighted its purchase of Nebraska Furniture Mart. Buffett was a huge fan of NFM's chairman, the 91-year-old Rose Blumkin, who he affectionately referred to as "Mrs. B."
Here's an excerpt:
I have been asked by a number of people just what secrets the Blumkins bring to their business. These are not very esoteric. All members of the family: (1) apply themselves with an enthusiasm and energy that would make Ben Franklin and Horatio Alger look like dropouts; (2) define with extraordinary realism their area of special competence and act decisively on all matters within it; (3) ignore even the most enticing propositions failing outside of that area of special competence; and, (4) unfailingly behave in a high-grade manner with everyone they deal with. (Mrs. B boils it down to “sell cheap and tell the truth”.)
Our evaluation of the integrity of Mrs. B and her family was demonstrated when we purchased 90% of the business: NFM had never had an audit and we did not request one; we did not take an inventory nor verify the receivables; we did not check property titles. We gave Mrs. B a check for $55 million and she gave us her word. That made for an even exchange.
That's trust.
Buffett is a long-time investor in the insurance business. In <a href="http://www.berkshirehathaway.com/letters/2001pdf.pdf">his 2001 letter</a>, he described the economics of the industry, writing, "Our main business – though we have others of great importance – is insurance. To understand Berkshire, therefore, it is necessary that you understand how to evaluate an insurance company."
Buffett reflects on the World Trade Center attacks of September 11, 2001, and how the prospect of terrorism altered the insurance business:
The events of September 11th made it clear that our implementation of rules 1 and 2 at General Re had been dangerously weak. In setting prices and also in evaluating aggregation risk, we had either overlooked or dismissed the possibility of large-scale terrorism losses. That was a relevant underwriting factor, and we ignored it.
In pricing property coverages, for example, we had looked to the past and taken into account only costs we might expect to incur from windstorm, fire, explosion and earthquake. But what will be the largest insured property loss in history (after adding related business-interruption claims) originated from none of these forces. In short, all of us in the industry made a fundamental underwriting mistake by focusing on experience, rather than exposure, thereby assuming a huge terrorism risk for which we received no premium.
Finally, there was 2008 – the year of the Lehman Brothers failure and the global financial crisis.
<a href="http://www.berkshirehathaway.com/letters/2001pdf.pdf">Buffett's 2008 letter</a> is pretty wide-ranging, given the lessons investors learned that year.
In one section, Buffett touched on the dangers of derivatives, which played a big part in the crisis. Buffett, as a long-time investor in the insurance business, had plenty of experience with the instruments himself.
He wrote:
Indeed, recent events demonstrate that certain big-name CEOs (or former CEOs) at major financial institutions were simply incapable of managing a business with a huge, complex book of derivatives. Include Charlie and me in this hapless group: When Berkshire purchased General Re in 1998, we knew we could not get our minds around its book of 23,218 derivatives contracts, made with 884 counterparties (many of which we had never heard of). So we decided to close up shop. Though we were under no pressure and were operating in benign markets as we exited, it took us five years and more than $400 million in losses to largely complete the task. Upon leaving, our feelings about the business mirrored a line in a country song: “I liked you better before I got to know you so well.”
Improved “transparency” – a favorite remedy of politicians, commentators and financial regulators for averting future train wrecks – won’t cure the problems that derivatives pose. I know of no reporting mechanism that would come close to describing and measuring the risks in a huge and complex portfolio of derivatives. Auditors can’t audit these contracts, and regulators can’t regulate them. When I read the pages of “disclosure” in 10-Ks of companies that are entangled with these instruments, all I end up knowing is that I don’t know what is going on in their portfolios (and then I reach for some aspirin).
The excerpts above are, of course, only a very small sample of the type of writing that has made Buffett's letters a must-read for investors year-in and year-out.
<a href="http://www.berkshirehathaway.com/letters/letters.html">Click here to explore the full archive of letters on the Berkshire website &gt;</a>

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You Searched For "audit of franklin company" and got 12 results

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