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     deanrosario
Member
Username: deanrosario
Post Number: 1220
Registered: 11-2002Rating: 
Votes: 2
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| | Tuesday, January 15, 2008 - 09:31 pm: |  
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Why does the corporate world continue to turn a blind eye toward, and reward, incompetence and mediocrity.
This thread will be devoted to exposing corporate executives, who are paid a lot to lose your money.
I'll start with the man of the moment ...
1. Mr Andrew Scott, (ex)-CEO of Centro Property Group
Centro's, whose shares were trading at $10 in May 2007 and touched $0.445 today, announced that its chief executive, Andrew Scott, would step down immediately.
Mr Scott stands to receive up to $3 million, plus accrued salary and other entitlements, if he stays on as a consultant until March 31 this year, the company said.
And, how ironic that on the day Mr Scott walks away with a nice payout another rogue - actually, we can legitimately call him a criminal without fear of defamation - walked free.
2. Mr Ray Williams, founder and ex-CEO of HIH
Ray Williams, who presided over Australia's biggest corporate failure, walked free from prison today, but for thousands of small investors and policy holders the financial nightmare rolls on.
Williams, who was declared bankrupt, reportedly transferred much of his fortune into his wife Rita's account before his conviction.
It is said to have included a $4 million home, a $12 million Mosman mansion, a $5 million Lake Macquarie retreat and a Gold Coast unit.
3. Brad Cooper, an HIH associate, is eligible for parole in October 2010.
"Never commit yourself to anything you can't walk away from in 30 seconds." Neil McCauley (played by Robert de Niro) in 'Heat'.
"Hope is a dangerous thing. Hope can drive a man insane." Ellis Boyd "Red" Redding, played by Morgan Freeman, in 'The Shawshank Redemption'.
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easymoney
Member
Username: easymoney
Post Number: 97
Registered: 03-2005Rating: N/A
Votes: 0
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| | Wednesday, January 16, 2008 - 08:59 am: |
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With respect to Ray Williams, if the property was transferred in order to defeat creditors then I would expect that the trustee in bankruptcy would have been able to reclaim the assets.
What happened? Just a case of better lawyers?
Two of them say they're Jesus.
One of them must be wrong.
Industrial Disease
Dire Straits
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mum
Member
Username: mum
Post Number: 211
Registered: 08-2005
Rating: N/A
Votes: 0
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| | Friday, January 25, 2008 - 08:04 pm: |
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A bit from Daily Reckoning
--Hey did you see that 31-year old Societe General trader Jerome Kerviel lost his French bank $8.03 billion on stock futures trades gone wrong? Wall Street likes to call these incidents of "rogue trading," as if it was a lone gunmen pursing his own nefarious agenda.
--Please.
--What about rogue CEO' Stan O'Neal who made a market call on subprime mortgages and cost his shareholders billions of dollars in equity and losses? Kerviel didn't even personally profit from his trades, according to wire service reports. He was either a bad trader, or one who thought he knew how to make the bank some extra money. "Better to ask forgiveness than permission," goes the old saying. If he had been right he would probably have been given a raise and several billion euros of the bank's money to play with.
--By contrast, guys like Stan O'Neal and Chuck Prince at Citigroup made strategic decisions to get their companies involved in risky financial products at the height of a credit bubble. They shifted operational focus, dedicated company resources, and put real capital at risk-capital which went up in flames. O'Neal walked away US$161 million after leading the bank to one of its largest losses in its 93-year history.
--Don't blame the rogue traders or the hedge funds for the mess we're in, dear reader. It's the rogue capitalists, the people who've turned financial companies into vehicles for funneling institutional profits directly into their own pocket. These were supposed to be the men and women that made Britain and America and Australia the best "allocators of capital" in the world.
--Instead, you got the biggest bubble in the world in which the people at the top got enormously rich while taking very little personal risk, yet putting the whole financial system at risk. That's what's rotten in financial markets, and the sooner it can be cut out like the giant tumor that it is, the better. The trouble is, the cancer has spread to so many places (households, businesses, government balance sheets) that the patient may already be a goner.
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