Saturday, September 20, 2008

Rob 'n' Plunder 'n' Sink t' Ship

Yesterday was International Talk Like A Pirate Day.

On Wall Street, every day is International Behave Like a Pirate Day.

The embattled company paid out $US5.7 billion in bonuses in 2007 alone, with senior executives including CEO Dick Fund receiving the biggest payments.

It really said "Dick Fund" - that's not funny, those were our funds they were dicking around with. Actually, Lehman CEO Richard Fuld was awarded a $22 million bonus for 2007. Now shareholders like me have been wiped out.

None of that will matter to Fuld's personal bottom line. Though he is declining a bonus this year, it appears as though his financial cushion is substantial.

That's the main point. They've already raided the ship, now they don't care if it sinks.

But I'm a compassionate guy, I am very glad that Richard Fuld is alive and well. Honestly. Because if he had died or become disabled, Fuld's payoff would have been $434.7 million.

According to lawyer Ben Phi:
If Lehman's executives were frantically redistributing the company's wealth to themselves when the company was in trouble, then they'd clearly have a case to answer
If?

3 comments:

Proper Bumhole said...

Fuld's bonus of $22m means he was getting $43 a minute, and that's if he worked 24 hour days.

Surely your shares have rallied back, now that they have been bailed out. Not having a go at you, but some investors are the first to moan when things go wrong but are very quiet, when their shares were rising and their dividends are coming though.

There's no safe investment - shares, property, buy to let etc.

I'm off to withdraw my life savings of £37.50 and hide it under the bed before Barclays goes belly up.

R N B said...

My own shares have not fully recovered, that's another story, but I have no major personal loss, I have done very well in other areas.

The broader point is that the corporate pirates are "allowed" to run off with the corporation's treasure before sinking the corporation's ship.

Faisal said...

I don't think any bailout should exceed food coupons and basic council housing. Everything else should be earned.

Now, if Mr. Fuld helped earn an amount that enabled his share to be 22.x million, or 223.x million, fair enough. The death benefit, on the other hand, seems to be an insurance scam. I can't imagine the premium on that policy, or the justification for Lehman paying it.

Not all investments carry risk. If you buy something with inherent value, for a discounted price, and can afford to keep it while it trades below true market value...

Know of any houses trading for 30,000 pounds in the Kensington area?