My Dear Friends,
I am absolutely sick to my stomach. I am grateful that I am 67 years old because I fear for my children and grand children.
How can they maintain the principles taught to them in a degraded, sinful and sociopathic world?
The world is crying out for relief from a financial world akin to Caligula’s rule of Rome
Not only was the case for corporate Federal governance not moved forward, it has collapsed on the FASB/SEC return to total value fabrication of the weapons of mass financial destruction, OTC derivatives.
Corporate governance takes back seat in bailouts
Treasury’s investments will do little to advance cause, experts say
By Alistair Barr, MarketWatch
Last update: 6:48 p.m. EDT Oct. 17, 2008
SAN FRANCISCO (MarketWatch) — The U.S. Treasury’s plan to invest $125 billion in nine of the country’s largest banks will do little to advance the corporate governance movement, experts said on Friday.
Some of the corporate governance and executive compensation rules in the original bailout legislation have since been softened by interim final rules drawn up by the Treasury as part of its plan to inject capital into banks, they added.
“The rock struck the water and it made a significant splash, but the ripples have been limited by the actual rules,” Patrick McGurn, special counsel at corporate governance specialist RiskMetrics Group, said in an interview. “From a corporate standpoint, the fine print has limited some of the impact of the bailout package.”
Earlier this month, Congress passed massive bailout legislation allowing the Treasury to spend $700 billion buying bad assets from struggling financial institutions.
But stock markets plunged further and credit markets froze, forcing the government to use $125 billion of that money to invest directly in nine of the largest U.S. banks, including Citigroup (C), J.P. Morgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), Morgan Stanley (MS) and Goldman Sachs (GS).
To gain support for the bailout plans, the Treasury said financial institutions benefiting from government support would have to adhere to stricter corporate governance rules and executive compensation limits.