BofA's Bogus Bottom LineWhat's the real difference between Lehman Brothers' bogus Repo 105 transactions and Bank of America's ( BAC) "dollar rolls?" Easy. Lehman Brothers isn't around anymore to offer a lame defense of its shady off-balance sheet shenanigans.
Toyota's 'Told You So'Somebody owes Toyota ( TM) an apology. Not us, of course, but some lead-footed drivers with loud-mouth lawyers. On Wednesday, the Japanese automaker said that its internal investigation of nearly 2,000 cases of unintended acceleration uncovered no problem with its electronic throttle system. Driver error was to blame in some cases. Toyota released its findings after The Wall Street Journal reported that the early results from the U.S. government's analysis of dozens of data recorders in Toyota vehicles also suggested that the so-called sudden acceleration problem was primarily a function of "pedal misapplication."
Adios, ADCForgive our brief bout of nostalgia, dear readers, but we were visited by the Ghost of Dumbest Past this week when Tyco Electronics ( TYC) announced it was buying broadband specialist ADC Telecommunications ( ADCT) for $12.75 a share. In fact, it was 10 years ago this month that ADC hit its all-time high of just under $300 a share. Ah, those were the days! Back then, a bubble was a bubble. The Nasdaq was hopping with unprofitable IPOs, and Wall Street was humming with unethical analysts. And when the whole thing popped, you only lost your retirement savings -- not your job to a Chinese worker and your home to foreclosure.
Nestle's NonsenseThank you, FTC for putting an end to Nestle's ( NSRGY) nutritional nonsense. Antibiotics help children get better. Probiotics as a cure is pure promotional poppycock. The Federal Trade Commission said Wednesday that it reached a settlement with a Nestle subsidiary to stop it from advertising that its children's drink Boost Kid Essentials can prevent illness and increase immunity. The FTC deal is part of a larger push to crackdown on "bogus health claims" on consumer products. Probiotics are live bacteria found naturally in many foods and are touted for aiding digestion and fighting harmful bacteria.
One Bad AppleApple's ( AAPL) new iPhone 4 may not be as bad as the company's infamous Newton, yet that is not stopping Consumer Reports from bonking Steve Jobs on the head. Shares of Apple sank over 2% Tuesday even as the tech-heavy Nasdaq surged 2%, due to a troubling Consumer Reports review of the newest iPhone. The review, which otherwise spoke glowingly about the phone, concluded that "Apple needs to come up with a permanent -- and free -- fix for the antenna problem before we can recommend the iPhone 4."