Comments on: Rakoff throws down the gauntlet Option ARMageddon Tue, 14 Oct 2014 13:06:34 +0000 hourly 1 By: the Shah Tue, 15 Sep 2009 21:44:32 +0000 Executives will never be financially liable… might get a fraud charge that will mean a few months in Club Fed but will never pay out of pocket. These corps are too big and all executives have a ‘plausible deniability’, though the use of that kind of defence implicity states negligence and therefore liability. But I don’t think shareholders should be spared… they voted these men in and the books are open to them. Due diligence means something and no one really does it anymore. Laziness and greed shouldn’t be forgiven, be it a greedy executive or a greedy investor. Just because there are more investors than executive one can’t say one is any worse than the others. Can’t one argue it’s the shareholders lust for profits and therefore higher dividend, higher share prices that led executives to reach or be purged? Seems reasonable to me, but for now it’s all executive avarice and malicious greed exclusively.

OK, I’ve rambled, but while these top guys deserve punishment I would honestly say they were only chasing the profits their shareholders demanded and rather than saying ‘we’ve gone as far as we can go’, they decided to keep going and give themselves a parachute for the inevitable fall. Just an opinion, I could be totally off-base.

By: Casper Lab Tue, 15 Sep 2009 08:07:34 +0000 I am informed by Roman-Dutch and British Law: the shareholders, o.b.o. the legal entity and i.t.o. their own interests, should summons the Board, particularly the Chief Executive, who has been mandated to run the entity according to its memorandum and articles of association ? Quite right, the entity should pay the fine which will then reduce free cash flows and whatever goes with that. What about criminal prosecution ? I have studied SOX, and find it even more lightweight than the vessel into which Santa sticks our goodies.

By: Billy Mon, 14 Sep 2009 22:52:06 +0000 Am I missing something? I’ve wondered from the start of this financial collapse, who & where are the Board of Directors? Are they not questionable or even liable in any of this?

By: Peter H Mon, 14 Sep 2009 20:30:09 +0000 Phew, and there I was beginning to believe all the tax-payer funded establishments had sold out to the mega-rich. Let’s hope it’s not a charade.

By: Mikey Mon, 14 Sep 2009 19:36:43 +0000 I’m kinda shocked. There’s actually someone working for the government that hasn’t been bought off yet?

By: Anna Mon, 14 Sep 2009 18:55:47 +0000 Nicely done, Rakoff. Any hope of clawing back those bonuses?

By: Andrew Mon, 14 Sep 2009 18:44:17 +0000 lesson: don’t put names in brackets cause they get cut off

Judge: Ok… trial in 3… 2… GO!

SEC: Um… I don’t really want to…

Judge: Shut your mouth! Now prosecute!

SEC: Well, BAC, they’re mean.

BAC: Nuh uh.

SEC: Hmm. I don’t think I can’t beat that your Honor. Can’t I just turn them over my knee and paddle them?

Judge: …

By: Andrew Mon, 14 Sep 2009 18:43:01 +0000 That could be an interesting dynamic…

: Ok… trial in 3… 2… GO!

: Um… I don’t really want to…

: Shut your mouth! Now prosecute!

: Well, BAC, they’re mean.

: Nuh uh.

: Hmm. I don’t think I can’t beat that your Honor. Can’t I just turn them over my knee and paddle them?

: …

In a different excercise of the imagination, can you imagine the public uproar over the pandering to big money due to this farce of a prosecution if a republican were still president.

By: CB Mon, 14 Sep 2009 18:37:26 +0000 The revolving door is, I believe, the most important factor in the inability of our regulatory agencies to do their job.

How can we get those who have a thorough knowledge of the area they must regulate without tapping that area for talent? Anyone thus selected brings along the network of contacts that will assure the person’s continued financial success once they have left office – but ONLY if they tread carefully while in office.

The demand for knowledge of industry intricacies is forever growing. If an incompetent and/or ignorant person is put in place then the results are as bad or worse than when an industry puppet sits there – the “Brownie” example springs to mind.

Those who wrote the Constitution didn’t have to face this issue, except for “a well-regulated militia” perhaps. So, seriously, what are we to do?

The capcha for this posting is ominous – “toast”

By: million Mon, 14 Sep 2009 18:08:50 +0000 Rakoff’s about to get Spitzered.