HSBC Watch News Release Forum Index
Forum Name: - Saks
Topic Title: Saks restates earnings from 1999 - 2004
Fri Mar 04, 2005 9:57 am
Saks will restate financial statements from fiscal 1999 through the third quarter of fiscal 2004.
"In light of the cumulative impact that the vendor allowance and operating lease matters would have to fourth quarter fiscal 2004 financial results, the company now expects to restate its financial statements for fiscal 1999 through the third quarter of fiscal 2004," Saks said.
Saks said that financial statements for those periods should no longer be relied upon. Saks said it does not currently believe that there were any improper collections during fiscal 2004.
Household - HSBC Watch said the SEC should examine ongoing compensation from Household International and HSBC when examining improper collections.
Fri Mar 04, 2005 4:06 pm
tblake wrote:
Saks will restate financial statements from fiscal 1999 through the third quarter of fiscal 2004.
"In light of the cumulative impact that the vendor allowance and operating lease matters would have to fourth quarter fiscal 2004 financial results, the company now expects to restate its financial statements for fiscal 1999 through the third quarter of fiscal 2004," Saks said.
Saks said that financial statements for those periods should no longer be relied upon. Saks said it does not currently believe that there were any improper collections during fiscal 2004.
Household - HSBC Watch said the SEC should examine ongoing compensation from Household International and HSBC when examining improper collections.
"In light of the cumulative impact that the vendor allowance and operating lease matters would have to fourth quarter fiscal 2004 financial results, the company now expects to restate its financial statements for fiscal 1999 through the third quarter of fiscal 2004," Saks said.
Saks said that financial statements for those periods should no longer be relied upon. Saks said it does not currently believe that there were any improper collections during fiscal 2004.
Household - HSBC Watch said the SEC should examine ongoing compensation from Household International and HSBC when examining improper collections.
The biggest problem at Saks in CEO Brad Martin. Out of touch with reality, he once called Household International one of the most highly regarded finance companies in the industry. Within a short period of time Household International settled a nationwide $484 million predatory lending action. Complaints and regulatory issues are easy to find with due diligence and some intelligent investigating. Martin didn't do any investigating. Consider these facts:
- Household sued by California, re: 36,000 complaints.
- CEO William (Bill) Aldinger under fire for predatory lending.
- Suit by EchoSphere, public record, EchoSphere v Household.
- Aldinger is CEO at Household as Household is fined $484 million.
- Household pays $11 million to settle Shea v Household.
- Household tries to settle Beneficial and H&R Block for $25 million.
- Household receives cease and desist from the SEC.
- Household's cost of borrowing money skyrockets.
- Aldinger is director at AT&T as AT&T fined appx $500 million.
- Aldinger is director at MasterCard as MasterCard pays $1 billion for suit.
Suits, settlements, and regulatory orders revolve around one man, Bill Aldinger, and he has his finger in the *beep*. If Brad Martin's comment about "one of the most highly regarded finance companies" appeared to be the rantings of a CEO surrounded by "yes men", and clouded by possible questionable judgement back when Saks signed on board with Household, the years have removed all doubt. Martin should be removed from his position, just like Aldinger was removed from his position. Then perhaps Saks can move forward.
Thu Mar 10, 2005 10:55 pm
Compliance costs have surged as regulators look at major bankruptcies among retailers’ credit operations. A perfect example of this occurred when Saks was trying to sell off its $1.4-billion portfolio, eventually bought by Household. Regulators uncovered late reporting of cardholder payments during the due-diligence process and pounced. Score another for Brad Martin and predatory lender Household International.
Saks released a press release which disclosed the terms of their Household contract and the amount of ongoing compensation received from Household. Some consider ongoing compensation as kick-backs when Household and HSBC credit payments late.
We monitor customer trends for possible violations of Regulation Z and other possible illegal actions.