Private Equity Warburg Pincus and Waterbury-based Webster Financial said Thursday Warburg was reducing its stake in Webster.
Warburg is selling 10 million shares in Webster. The private equity acquired a major stake in Webster in 2009 when the bank was raising capital and fortifying its balance sheet.
Webster CEO Jim Smith characterized this as a profit taking move and said Warburg continues to be a major investor in the bank and remains confident in the bank.
Webster also authorized a share buy back program.
Financial Mines
News and notes from the business reporters for the Connecticut Media Group.
Archive for December 6th, 2012
Warburg Pincus trims stake in Webster
How not to get fooled by gold schemes
Bob Walter of Sam Sloat holds the real stuff, American Gold Eagles in this file photo from 1997
Following an announcement this week by the Commodities Futures Trading Commission that it was filing charges against 12 firms for allegedly selling phantom gold to investors, The Mines reached out to veteran coin dealer Bob Walter of Westport-based Sam Sloat to get some tips on avoiding these scams.
“The most important thing, if you’re buying gold, is to take physical delivery of it,” Walter said. “So many times, people are selling gold they just dong’ have. It’s very easy to make it appear they have the gold.”
Walter, whose been in the business for 41 years, says the phantom gold investment scheme is an old one and he remembers a Florida firm int he 1980s that went so far as to spray paint blocks of wood and photograph them stacked in a vault to help it attract investors.
He said another thing to consider when buying gold from an out of state vendor is ask why you need to do business with that firm when there are local dealers who can provide you the actual gold.
Often the investor is lured into the scam by a low price, he said, noting he’s heard customers say they saw an internet ad offering to sell gold coins at price below what dealers would pay for them.
The alleged scam the CFTC is pursuing took investors for more than $46 million and customers were told they only had to provide part of the purchase price while the company would finance the rest of it.
Right now interest in gold is strong as people look for a safe investment that will hold its value in a low interest environment and fears inflation will finally spread beyond food, energy, healthcare and education. We know prices have risen in other areas, but remember, the flatscreens are still still cheap.
Walter said another thing gold buyers should do is their research. They should make sure the company they’re dealing with is legitimate and check the references.
As we say in the Mines, don’t be the fool that rushes into a deal.
Connecticut grabs $5 million in Constellation settlement
Connecticut officials said Thursday electricity customers in the state will begin seeing a credit on their bills in January as funds from an energy market manipulation settlement get released.
In March, Constellation Energy Commodities Group settled allegations it manipulated Northeast electricity prices between 2007 and 2008. Constellation agreed to pay $245 million to settle the charges, with $20 million of that to be dispersed in New England.
Connecticut’s cut is about $5 million and Connecticut officials said residents here will start to see a credit from this agreement beginning in January.
Constellation did not immediately return an email request for information.
Connecticut and California both saw major upswings in energy prices as they deregulated their electricity markets and both were impacted by alleged manipulations. California suffered blackouts and fines were levied on numerous firms as a result.
