Executives Pillage And Plunder
Ok, it’s official now, AP did the research and concluded that the bank executives have personally benefited from the financial bailout to the tune of $1,600,000,000.00 (that’s one billion six hundred million dollars).
Let’s be real clear about what’s happening here. These businesses have some really smart people working for them. They have accountants and economists working for them making educated guesses about the future. They know exactly what to expect one year, two years even five years from now.
What they did was to milk the company dry fully knowing and fully aware that the company was losing money left and right. They acted in a manner consistent with their personal financial wellbeing and not that of the company.
What this indicates to me is that they acted criminally. Each and every company executive has a duty under the law to act in the best interest of the company and its stockholders. In the law this is known as a “fiduciary” responsibility.
The company and stockholders put their faith and trust in these executives. They are at the mercy of those in control of the company, namely the executives. Those executives, having received the financial forecasts had a legal duty to safeguard the assets of the company.
Instead the executives raped, plundered and pillaged the companies by demanding and accepting huge performance bonuses when the companies in fact were performing poorly. Who in their right mind demands a performance bonus when their performance is beyond poor? And speaking of executives being in the right mind how is it that a board of directors approves an outrageous performance bonus to an employee that is failing to perform?
I am having a hard time understanding why stockholders and others (investors etc.) are not filing law suits asking that the executives be held accountable for the misfortunes of the companies. Breach of a fiduciary responsible is a serious offence.
While many would argue that proving breach of fiduciary responsibility is difficult to prove I contend that asking for and accepting a multi-million dollar performance bonus while the company is on a direct course to the toilet is clear and convincing evidence that the executives failed to act in the best interest of the company. Clearly the only thing standing between justice and the criminal acts of the executives are the court judges appointed by the Republican administration.
In addition to the above there is one more thing we should take into account. The executives did not issue the bailout to themselves. Our congress had a lot to do with this raping, pillaging and plundering of the taxpayers pockets.
Will the taxpayers remember this at the next elections? I hope so, I really hope so.
Pancho Villa - a bleeding heart liberal Revolutionary.
Work with nature - plant a tree for more oxygen and less pollution.
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