The 60’s

Do You Remeber The 60’s

My Indiana Jones


7 Days’ Battle – Slate

Can’t Afford A Band-Aid

“Quite frankly, what the market is looking for is some kind of coordinated action from central banks around the world.” said Kathy Lien, director of currency research at GFT Forex. The Paulson plan, she added, is like a “Band-Aid for a problem that stretches way beyond the banking system now.”

Bush – The Gambler

Who is going to bail out the Feds?

We’re down Billions – Let’s go Double or Nothing…

List of Chief Executives – Walk Away Money

”…list of chief executives who oversaw monumental failures…led the nation’s financial system to the edge…still able to walk away with big payouts…”
Stanley O’Neal, Merrill Lynch
Angelo R. Mozilo, Countrywide Financial
Richard Fuld, Lehman Bros.
James Cayne, Bear Stearns
Richard Syron, Freddie Mac – Syron, an economist, joined Freddie Mac in 2003 after it was revealed the company had manipulated earnings to the tune of $5 billion…
Daniel Mudd, Fannie Mae
Kennedy Thompson, Wachovia
Kerry Killinger, Washington Mutual
Martin Sullivan, AIG – Sullivan left the firm after AIG wrote down $20 billion in losses because of the company’s exposure to subprime mortgages.
**In a rare twist, Sullivan’s temporary successor Robert Willumstad took a pass on the $22 million he was promised in his contract.

CEO Pay: Wild – Probably Cannot Be Tamed

Can wild CEO pay be tamed? Probably not
The gap widens: CEO compensation 275 times the salary of average worker
By Eve Tahmincioglu
updated 10:50 a.m. CT, Wed., Oct. 1, 2008

The guys who ran the recently collapsed Lehman Bros., Merrill Lynch, Bear Stearns, Fannie Mae and Freddie Mac all prove one thing.

You don’t always get what you pay for.

Big paychecks for jobs not well done:
# Lehman Bros.’ Richard Fuld, $40 million.
# Merrill Lynch’s Stanley O’Neal, $46 million.
# Bear Stearns’ James Cayne, $40 million.
# Freddie Mac’s Richard Syron, just shy of $20 million.
# Fannie Mae’s Daniel Mudd, $12.2 million…

Why? Because regulators never go far enough in giving shareholders a true voice. It’s difficult to break up entrenched boards of directors that make the decisions on executive compensation…

…now 275 times the salary of the average working stiff, according to the Economic Policy Institute.

“Government regulators are notoriously ineffective at reining in pay, and oftentimes the unintended consequences caused greater problems,” says Charles Elson, an expert on corporate governance at the University of Delaware…

These concerns resulted in a 1986 change in the tax code creating a penalty tax on excessive golden parachute payments more than three times an executive’s base pay…

In 1992, the Securities and Exchange Commission introduced proxy disclosure rules taking information about executive compensation that was once narrative and thin on numerical values, and putting actual numbers out there for all to see…

“Certainly, compensation practices at these companies have been a major contributor to the financial crisis,” says Paul Hodgson, a senior analyst at the Corporate Library, an independent governance research organization…

This year’s theme: the link between CEO pay and the subprime disaster.

“A large part of how we got here, in addition to lack of regulation and greed, was the way the incentive packages were structured to incentivize the executives to take risks,” he notes. “As a result, lots of money was paid to undeserving CEOs.”
© 2008 MSNBC Interactive

The Gap Widens – CEO Compensation

Report Hints: White House Involvement

Report Implicates White House
E-Mails Hint at Involvement in Prosecutor Firings, Officials Say

By Carrie Johnson
Washington Post Staff Writer
Wednesday, October 1, 2008; A15

In 18 months of searching, Justice Department Inspector General Glenn A. Fine and Office of Professional Responsibility chief H. Marshall Jarrett have uncovered new e-mail messages hinting at heightened involvement of White House lawyers and political aides in the firings of nine federal prosecutors two years ago.

But they could not probe much deeper because key officials declined to be interviewed and a critical timeline drafted by the White House was so heavily redacted that it was “virtually worthless as an investigative tool,” the authorities said.

At a White House breakfast in mid-November, Wilson approached Rove to tell him that the U.S. attorney was a “waste of breath,” according to her interview with investigators. She said Rove told her: “That decision has already been made. He’s gone.”Less than three hours later, a Justice Department official forwarded a firing list to the White House Counsel’s Office on which Iglesias’s name appeared, giving rise to questions about how Rove learned about its contents in advance, and whether the department ultimately fired Iglesias for improper political reasons.

Robert D. Luskin, an attorney for Rove, said: “We’ll look forward to the opportunity if the circumstances are appropriate of Rove being able to cooperate voluntarily. Rove has nothing to fear from truthful testimony.”

“If, in the course of her investigation, she needs information, we will certainly want to accommodate her,” White House spokesman Tony Fratto said of Dannehy. A lawyer for Miers did not return calls seeking comment.

Washington Post