It's not shallow at all. What is shallow is customers & shareholders not putting more pressure on executives to take full responsibility and finally take some flack for their insane compensation packages. This guy might have just killed a firm, yet corporate corruption is at its highs along with exec compensation. Hopefully it will be a wake up call to put these executives in check and actually make them earn their millions the hard way.
I agree with your statement ..they should be accountable and responsible..and as your statement indicates you feel compassion for the customers and shareholders..I have just added employees..we agree..if I read you correct.. being shallow is that the person ...not the firm...get what it deserves.. w
refco's done. some of the questions on this thread really have me scratching my head. This IS a trader's website, right? CME was a great short about 25$ higher, two days ago.
OK, my 2 cents FWIW. It is always bad, sad, and poor for the industry when anything like this happens to any firm. I am especially concerned for the investors/traders, as they, as usual, end up eating a bunch of $$. My people tell me that there is a very large amount of insurance bonding that may help somewhat...we'll have to wait and see. There should never be any "reveling" (by "competitors" especially), this could be a big black eye for the entire securities business....just when the public "thought it was safe" to get back in. I'm certainly not going to pass any judgements until the facts are released. Don
No the firm fully deserves what it gets. The firm chose or allowed this CEO to be in place and now they pay the price. Shareholders and employees need to get on top of these execs and this is the only way they are going to learn. WTF are they paying them millions of dollars for?
Interesting, "team". Refco is not the first nor will it be last of a firm that is in deep trouble because of 1-2 individuals, let alone CEO of the firm. from Savings and Loan, Drexel, BCCI, to the latest one, Enron, MCI, Tyco (which survived), Adelphia, etc. While Refco still haven't joined that rank yet, it is on the brink, it has already lost the public image battle (pushed deeper by today's Capital Markets announcement). Rumours of pending credit crunch and bankrupt will just destroy any value the stock have left, if it even begin to trade again. As seen by today's Refco bond sell off, I am merely reflecting a public view, a harsh one, but shared by many. And as CME tightens the grip on the Refco FCM (to ensure that the system is not affected should Refco go down), I am convinced that there will not be a fed-assisted rescue, instead the Refco assets will be sold off (no system-wide shock, it seems), either in one chunk, or several pieces. I think the chances of Refco surviving is 50/50, and it is getting worse every day.
Yeah, right buddy. That is easy for you to say. Please specify which employee that was making millions of dollars as you say should have been aware of what was going on and "getting on top of these execs" as you say? The quarterly transactions that occured via the CEO's frauds and manipulations were basically buried so well that not even due diligence conducted by the auditors were able to uncover it over many years . . . If the private equity firm of Thomas Lee could miss it and the auditors of accounting firm Grant Thornton could miss it in this day and age of Sarbannes-Oaxley, I'm sure that employee XYZ would have missed it too.
The point is Hydro is right. There ought to be life sentences without parole for this kind of fraud. That would slow white collar crime to a screeching standstill. How many people lose their life savings to these jerks? The problem is the system is run by white collar folks as well... or as David Crosby put it "...they sacrifice a lawyer or two and they're laughing at you."
I agree with you in that full proper disclosure is a must. We are all aware of creative accounting..and then adjustments later similiar to our weekly data that gives us our volitility. I would be interested in what you would of done if you had the power that would of disclosed or stopped this earlier. I have been the victim of several scandals..paid lawyers and accountants good money to know avail.. How much is your budget and sue me....are just to familiar words these days.. No man is an Island and I believe these few individuals are not the company.. just my oppinion and two cents worth.. w