Zacks Analyst Blog Highlights: AIG, Citigroup, Bank of America, TAM, and Vivo.
For Immediate Release
Chicago, IL June 12, 2009 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: AIG (AIG - Snapshot Report), Citigroup (C - Analyst Report), Bank of America (BAC - Analyst Report), TAM (TAM - Analyst Report) and Vivo (VIV - Snapshot Report).
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Here are highlights from Thursdays Analyst Blog:
Treasury Releases New TARP Rules
Specifically, the rules limit compensation for senior executives and other highly paid employees at companies receiving TARP funds, including limits on bonus payments (to one-third of total compensation) and curtailment of Golden Parachutes. Further, the bonuses paid to senior executive officers and the next 20 most highly compensated employees will be subject to a "clawback" provision if the payment was based on materially inaccurate performance criteria.
Under the rules, the Treasury appointed Kenneth R. Feinberg as the Special Master for TARP Executive Compensation. Mr. Feinberg will review payments and compensation plans for the executives and the 100 most highly compensated employees of seven TARP recipients that have received exceptional assistance, AIG (AIG - Snapshot Report), Citigroup (C - Analyst Report), Bank of America (BAC - Analyst Report), Chrysler, General Motors, GMAC LLC, Chrysler and Chrysler Financial.
Brazilian Central Bank Cuts 100 bps!
Considering the orthodox bias of the Brazilian Central Bank, we were expecting a 50 basis points cut, too. The decision was not unanimous -- among the eight directors with powers to vote in the meeting, six directors voted for 100 basis points cut and two voted for 75 basis points.
Despite the bold decision, the statement after the meeting said that any additional cuts in the near future will be implemented in a more parsimonious way," thus new cuts should be much less aggressive.
This is the first time in more than 30 years that Brazil has reached a single-digit interest rate.
Despite this aggressive move, we maintain our expectation for year-end interest rate in Brazil between 8.5% and 9%. After this remarkable decision, we reinforce our positive view on companies focused on the Brazilian domestic market, including TAM (TAM - Analyst Report) and Vivo (VIV - Snapshot Report).
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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