Executives should be held accountable

[dennis in se pa]

News at AIG seems to indicate the executives were crooks like at Enron. At all of these companies that are failing I believe the executives that made the decisions, or allowed the decisions to be made, that caused our new situation should be held economically accountable. That's right! The investors are wiped out - so should they be. Take all of their money and property and divvy it up to the investors. They make 90 million a year and walk away with it. What is to stop this from continuing if a precedent is not set? Take the executive's assets and put them in jail!

[Rick Lee]

So you're suggesting we pass a(nother) law that allows the gov't. to seize people's assets? Do want due process with this or just flat out seizure for anyone you think makes too much money or performed poorly for their shareholders? Where does that stop? If you get a huge bonus at your job and then get fired a few mos. later, should the gov't. just be able to seize your bonus?

[dennis in se pa]

I find it interesting how many people respond to posts that don't understand them.

[Dueller]

Its unlikely that there will be much in the way of criminal action against execs in the financial/mortgage sector. Much of what those guys did was legit due to deregulation...maybe greedy but not unlawful.

OTOH, the insurance industry is much more heavily regulated and that is where you'll see succcessful criminal indictments.

[legion]

What about the fact that many companies were sued by the Clinton Administration for not making enough subprime loans?

This seems to be a damned if you do, damned if you don't kind of thing.

[sammyg2]

There are already way too many laws governing business practices. we don't need another. We need to improve enforcement.

While we're at it we should throw people in jail who knowingly apply and get a mortgage that they can't afford to pay back and then walk away from, and we should stop trying to blame "big business" and "corporate fat-cats" for the irresponsibility of the lazy, dumb, and greedy consumer. They are the ones who created this mess.

[Superman]

Of course, if executives do unlawful things then they should be thrown in jail. But....the law allows business decision-makers a WIDE latitude. W-I-D-E. In fact, our system vigorously encourages the riskiest of decision-making. Even in a legal sense. The "market" is diversified, which means investors are less risk-averse than managers. Not only does our system require, in a legal sense, the riskiest of behaviors but our culture similarly admires and rewards these "heroes." Reaching for the brass ring. Taking chances and winning BIG. That's a cultural value here. The problem is not really about isolated, individual risky decisions. It is systemic. These people you are calling "crooks" are, in fact, heroes.

[artplumber]

Originally Posted by Rick Lee

So you're suggesting we pass a(nother) law that allows the gov't. to seize people's assets? Do want due process with this or just flat out seizure for anyone you think makes too much money or performed poorly for their shareholders? Where does that stop? If you get a huge bonus at your job and then get fired a few mos. later, should the gov't. just be able to seize your bonus?

Apparently, there is a law on the books in NY that allows at least jail time for fraud, if it can be proved that the execs knew it was a sinking ship and took/gave big bonuses anyway. Difficulty will be in proving that to a jury....

Maybe a special taxation of CEO income is in order....

[Rick Lee]

Originally Posted by dennis in se pa

I find it interesting how many people respond to posts that don't understand them.

I was the only person to respond between your first two posts. So how many people is that? Ok, just explain it to me better then.

[Rick Lee]

Originally Posted by artplumber

Apparently, there is a law on the books in NY that allows at least jail time for fraud, if it can be proved that the execs knew it was a sinking ship and took/gave big bonuses anyway. Difficulty will be in proving that to a jury....

Maybe a special taxation of CEO income is in order....

Yes, but that's not what was in the original post. Of course, I support enforcing existing laws and especially those on fraud. But just seizing someone's money because you think they earn too much, especially in the absence of proof of fraud? I don't think that's a law here (yet).

[dennis in se pa]

"seizing someone's money because you think they earn too much" - are you reading this in another thread? Where is that written above? That is not at all the basis of what I am saying.
Like I said - people respond without thoroughly reading or understanding simple english text. I am not using large words or complex sentences.

[Rick Lee]

Originally Posted by dennis in se pa

Take all of their money and property and divvy it up to the investors.

Yeah, I think these words might not be simple enough for me. Sounds like you want assets seized.

[billwagnon]

who's on first?

[126coupe]

Originally Posted by artplumber

Apparently, there is a law on the books in NY that allows at least jail time for fraud, if it can be proved that the execs knew it was a sinking ship and took/gave big bonuses anyway. Difficulty will be in proving that to a jury....

Maybe a special taxation of CEO income is in order....

Much more difficult to find a jury that has an IQ equal to the task at hand.

[930LDR]

You guys will love this...

http://www.foxbusiness.com/story/markets/industries/finance/aig-executives-blow--getting-bailout/

[dhoward]

Hope there was a lot of happy endings...

[fintstone]

Originally Posted by rick lee

so you're suggesting we pass a(nother) law that allows the gov't. To seize people's assets? Do want due process with this or just flat out seizure for anyone you think makes too much money or performed poorly for their shareholders? Where does that stop? If you get a huge bonus at your job and then get fired a few mos. Later, should the gov't. Just be able to seize your bonus?

+1

[The Gaijin]

I am a huge competitor of AIG. But they are nothing like ENRON.

But still - heat up the tar and bust open a few pillows.

I will be there!

[dennis in se pa]

Looks like some people agree with me. Some criminals were taking advantage of the situation and the government is seriously going after them. It's on CNN and FOX. Buttholes that drove their companies into the ground will be losing their Golden parachutes. Isn't that a shame!

[pwd72s]

Originally Posted by legion

What about the fact that many companies were sued by the Clinton Administration for not making enough subprime loans?

This seems to be a damned if you do, damned if you don't kind of thing.

Good question. One that will most likely, and conveniently, be left unanswered.