It seems that Sir Fred "The Shred" Goodwin has struck a deal with his former company (RBS) over his pension pot of £17M.
Sir Fred, who will go into the history books along with Lord Simpson of Marconi as being one of the great destroyers of value, has agreed to forgo £4.7M of his pension. He will now draw a "measly" £342,500 inflation-protected income for life, instead of the £555,000 a year agreed previously.
For its part RBS announced that an internal investigation into Sir Fred's conduct, expenses and use of company resources had concluded that there was no wrongdoing or misconduct that could justify reducing his pension.
In other news billionaire and cricket entrepreneur Allen Stanford has been arrested in the US after surrendering to the FBI.
Showing posts with label fbi. Show all posts
Showing posts with label fbi. Show all posts
Friday, June 19, 2009
Wednesday, September 24, 2008
FBI Investigation
The Times reports that the FBI is investigating a number of executives from Fannie Mae, Freddie Mac, Lehman Brothers and AIG.
The Times states that are investigating as to whether the executives lied to shareholders, and whether fraud helped caused some of the troubles at these organisation.
The investigation includes whether executives deliberately misled the stock market about the state of their businesses.
Needless to say the politicians who oppose the $700BN Paulson bailout have latched onto this as another reason not to give money to greedy Wall Street bankers.
All well and good.
However, moral hazard and regulation can be addressed after the crisis has been dealt with.
When your neighbour's house catches fire (even if he started it deliberately) you do not stand idly by watching it burn (remonstrating with him about his stupidity), you help him put it out.
Another point that those who hate greedy bankers should remember is this, people were happy enough to borrow the money when it was cheap and to saddle themselves with debt; no one put a gun to their heads.
The Times states that are investigating as to whether the executives lied to shareholders, and whether fraud helped caused some of the troubles at these organisation.
The investigation includes whether executives deliberately misled the stock market about the state of their businesses.
Needless to say the politicians who oppose the $700BN Paulson bailout have latched onto this as another reason not to give money to greedy Wall Street bankers.
All well and good.
However, moral hazard and regulation can be addressed after the crisis has been dealt with.
When your neighbour's house catches fire (even if he started it deliberately) you do not stand idly by watching it burn (remonstrating with him about his stupidity), you help him put it out.
Another point that those who hate greedy bankers should remember is this, people were happy enough to borrow the money when it was cheap and to saddle themselves with debt; no one put a gun to their heads.
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