Trust Digest 93 (April 20, 2015)

Advisory Firm Says Nix to Elaine Wynn, Wynn Resorts Nominees
An advisory firm has recommended shareholders show their dissatisfaction with the state of affairs at Wynn Resorts in an upcoming election of board members. Elaine Wynn, who co-founded the casino operator with her ex-husband, company CEO Steve Wynn, is in a battle for re-election to the board. The company, meanwhile, re-nominated two other candidates and not Elaine Wynn.
Key Words: Corporate Governance, Compensation
Trust Issues: Alignment of Interests, Governance

U.S. Announces First Antitrust E-Commerce Prosecution
The U.S. Department of Justice’s antitrust division on Monday announced its first prosecution specifically targeting Internet commerce, saying a man has agreed to plead guilty to conspiring to illegally fix the prices of posters he sold online.
Key Words: Antitrust, DoJ, Price Fixing
Trust Issues: Predictability and Integrity, Relative Power

Sale of U.S. Arms Fuels the Wars of Arab States
To wage war in Yemen, Saudi Arabia is using F-15 fighter jets bought from Boeing. Pilots from the United Arab Emirates are flying Lockheed Martin’s F-16 to bomb both Yemen and Syria. Soon, the Emirates are expected to complete a deal with General Atomics for a fleet of Predator drones to run spying missions in their neighborhood.
Key Words: Proxy War, Arms Sales
Trust Issues: Risk Tolerance, Accountability

Wall Street Banks’ Mutual Funds Can Lag on Returns
Facing challenges on all fronts, Wall Street banks are pinning some of their hopes on a relatively simple business opportunity: creating mutual funds for ordinary savers. Over the last few years, an expanding line of mutual funds created by the likes of Goldman Sachs and JPMorgan Chase has been drawing billions of dollars from investors looking to earn a good return on their retirement money. For the banks, the fees that the funds generate have been among the few consistent bright spots of growth in a time of retrenchment on Wall Street.
Key Words: Mutual Funds, Big Banks
Trust Issues: Alignment of Interests, Capability, Benevolent Concern

NCAA Doctor Backs Off Recommending Heart Tests for Athletes
The NCAA’s chief medical officer said Friday that he will back off a plan to recommend a mandatory heart test for athletes at higher risk of cardiac death because of an outcry from university team doctors who oppose the practice. Wading into one of the hottest debates in sports medicine, Brian Hainline said last month that he was preparing to recommend that some groups of athletes, including male basketball players, be required to undergo an EKG test to search for cardiac defects. Hainline, a neurologist, joined the NCAA as its first chief medical officer in 2013.
Key Words: NCAA, Cardiac Risk
Trust Issues: Benevolent Concern, Alignment of Interests, Integrity

Aaron Hernandez Murder Conviction Could Eventually Hurt NFL Brand, Professor Says
The NFL brand appears to be as iron-clad as any today but the findings of a college professor indicate there may be chinks in that armor. What should be especially troubling to the league is that millennials are particularly disturbed by recent events according to a study conducted by USC marketing professor Jeetendr Sehdev.
Key Words: Brand perception, Transparency
Trust Issues: Level of Communication, Predictability and Integrity, Alignment of Interests

Bloomberg Terminals Suffer Widespread Failures
The web that weaves together much of the global financial ecosystem went down for a few hours on Friday when the Bloomberg data and communication network unexpectedly crashed. The failure at Bloomberg, which provides data and trading services for 325,000 financial professionals around the world, effectively shut down some parts of the capital markets and forced traders to confront their level of reliance on the Bloomberg system.
Key Words: Financial Ecosystem, Monopoly, Systemic Risk
Trust Issues: Risk Tolerance, Security

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