chair of TARP oversight calls for CEOs to be fired
"The very notion that anyone would infuse money into a financially troubled entity without demanding changes in management is preposterous."
No shit.
It will be very telling how this will be handled when it comes out, and whether Obama uses it as lever to act radically, or a counterfoil to "play moderate" and demur.
h/t CR of course
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...I'm sure this will work out just fine:
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It would seem to me that if Obama is serious about reaching out to Republicans, keeping Sheila Bair on as head of FDIC is a no-brainer. Yet Treasury nominee Geithner does not support her. I can't figure out what Bair did wrong (and I'm not being snarky). Consider:
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There is also the unanswered question of how much compensation they will collect as a severance. Rick Wagoner walked away from GM with around $23,000,000 in pensions despite the fact that GM stock has lost 95% of its value during his tenure, North American market share slid from 33% to 19% and GM has posted $30 billion in 2008 losses. The union workers who spent their adult lives in the factories are at risk of losing everything they worked for.
I expect the banking and insurance execs who presided over the collapse of their own companies won't walk away without a final payday worth more than most people earn in a lifetime
Yeah, and some peoples' contracts are more inviolate, of course.
It'll be interesting to see if state level law suits for fraudulent conveyance have any traction on recovering exec bonuses - there seem to be numerous cases of blatant looting that ought to make reasonable cases (IANAL).
At some point something will give: at the local level any given hedgie, IB or CEO can try to claw as much loot as they can, but at the global level All Our Money Does NOT Belong To Them, and if they try to actually take it all the pitchforks and torches come out eventually.
Then we start all over again.
It'll be interesting to see if state level law suits for fraudulent conveyance have any traction on recovering exec bonuses
First somebody who has standing to bring such a suit has to file it. Most corporations in this country are incorporated in Delaware for a reason--can the shareholders, or the AG of some other state (e.g., Cuomo), bring such a suit, or are we dependent on the inclination and staffing of the Delaware AG office? And if the suit has to be brought in Delaware, is there an applicable statute? Serious questions, since IANAL also.
In a sane legal systems the unions/employees collectively ought to have standing on the grounds that the bonuses and retirement/severance packages are coming out of the same corporate income pool that their salaries and benefits are drawing on.
So who is first in line? Management or workers?