It’s getting “hot” in the Court Room. Four more high level Executives getting “fried” after discovery of their “creative accounting” practices, aimed at bolstering stock prices to further enrich Company Executives with stock options waiting to be exercised at top level prices. To hell with the little stockholder or those whose 401K money or mutual funds suffer as a result of the revelation of this accounting manipulation. The “big guys” who foster and promote this accounting chicanery belong behind bars more so than the street criminal that holds up little old ladies or snatches their purses. Those losses are peanuts compared to impact of a substantial hit to one’s 401K or individual stock portfolio. First the National Brokers and their bid-rigging schemes, now top Execs in AIG and Gen Re. Who is next? No wonder the public thinks the insurance business is run by a bunch of crooks. Add to this the All State Executives who thumb their nose and defy orders of the Florida Insurance Commissioner to produce evidence of their need for a giant rate increase. They have a damn good point. It ain’t over until the Fat Lady Sings, and from all signs, she’s hasn’t even sung her scales yet.
Your post doesn’t make sense. The Gen Re people convicted here did not use “creative accounting.” In fact, they accounted for the deal quite conservatively calling it a deposit transaction. Only Milton was from AIG. The other four (plus the two that plead guilty and testified for the prosecution) were all on the Gen Re (Berkshire Hathaway) side of the transaction.
A criminal is a crook, get them out of our business… A risk manager is a risk manager… let them manage risk, within the guidelines of the law… It’s really that simple…
HERE IS A FEW FACTS. GEN RE IS PRIVATELY OWNED. NO EFFECT TO 401K’S DUE TO ANY OF THIS. AIG STOCK WAS UNAFFECTED AT THE TIME DUE TO THIS DEAL.THE RULES WERE WELL KNOWN AT THE TIME TO BE UNCLEAR. EVERYONE WHO EVER HEARD OF HANK WOULD KNOW THAT HE GOT HIS WAY OR ELSE. LOOK WHAT HE DID TO ERC WHEN THEY WOULDN’T PAY HIS CLAIMS. AIG WAS THE MARSH OF INSURERS. THE 800 POUND GORILLA YOU COULD NOT AVOID, WITHOUT THE 32 YEAR OLD ANALYSTS NAILING YOU TO THE WALL FOR LOOSING BUSINESS. THESE GUYS DO NOT DESERVE THIS. THEY ARE NOT ANYTHING LIKE THE CROOKS WHO BROUGHT DOWN COMPANIES OR THE THIEVES ON THE STREET. THINK ABOUT THE TWO GUYS AT MARSH WHO SET UP BID RIGGING AND TOOK MONEY FROM BOTH THEIR INSUREDS AND THE INSURERS VERSUS THIS CASE.THE AIG/GEN RE CASE COULD HARDLY HOLD A CANDLE TO SUCH THIEVERY.
They are all crooks of one sort or another. Granted, their errors don’t rise to the level of the Enron execs but innocent they are not. Hank must be Mr. Teflon.
Investors take risks, risks based on reliance upon individuals to perform in ways they would hope or expect. One risk investors take on, plain and simple, is the risks of executives lying.
These executives never engaged in practices that were illegal at the time, or even considered to be illegal. Misleading, perhaps. But are you trying to tell me that McDonald’s executives aren’t misleading the public on the health of their food? Or Ford misleading people on the quality of their vehicles?
My point is, it happens all around us, and sorting out lies from truth is part of life.
Ruining the lives of executives, because you are either jealous of their success, ungrateful for what they have provided for society, or trying to advance your own political career, should be considered the real wrongdoing.
I hope they appeal and win and that you all realize ex post facto rulings are not in anyone’s best interest, except those who love dictatorships.
Take on your own d*mn responsibility for your investments.
It is amazing to see executives of a large and reputable company manipulate books in order to boost stocks and mislead the public. Shame on them and those involved in transactions like this.
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I do not know the officers convicted… I hope it serves as a dererrant to those who may be in their position, in the future…
It’s getting “hot” in the Court Room. Four more high level Executives getting “fried” after discovery of their “creative accounting” practices, aimed at bolstering stock prices to further enrich Company Executives with stock options waiting to be exercised at top level prices. To hell with the little stockholder or those whose 401K money or mutual funds suffer as a result of the revelation of this accounting manipulation. The “big guys” who foster and promote this accounting chicanery belong behind bars more so than the street criminal that holds up little old ladies or snatches their purses. Those losses are peanuts compared to impact of a substantial hit to one’s 401K or individual stock portfolio. First the National Brokers and their bid-rigging schemes, now top Execs in AIG and Gen Re. Who is next? No wonder the public thinks the insurance business is run by a bunch of crooks. Add to this the All State Executives who thumb their nose and defy orders of the Florida Insurance Commissioner to produce evidence of their need for a giant rate increase. They have a damn good point. It ain’t over until the Fat Lady Sings, and from all signs, she’s hasn’t even sung her scales yet.
What will future officers be deterred from doing, exactly? Taking risks? Working with clients to find creative solutions? Thinking outside the box?
Been Around,
Your post doesn’t make sense. The Gen Re people convicted here did not use “creative accounting.” In fact, they accounted for the deal quite conservatively calling it a deposit transaction. Only Milton was from AIG. The other four (plus the two that plead guilty and testified for the prosecution) were all on the Gen Re (Berkshire Hathaway) side of the transaction.
Another nonsensical show trial. Why do D.A.’s prosecute cases like this?? Cuz they can, what a joke. These are real criminals???
A criminal is a crook, get them out of our business… A risk manager is a risk manager… let them manage risk, within the guidelines of the law… It’s really that simple…
HERE IS A FEW FACTS. GEN RE IS PRIVATELY OWNED. NO EFFECT TO 401K’S DUE TO ANY OF THIS. AIG STOCK WAS UNAFFECTED AT THE TIME DUE TO THIS DEAL.THE RULES WERE WELL KNOWN AT THE TIME TO BE UNCLEAR. EVERYONE WHO EVER HEARD OF HANK WOULD KNOW THAT HE GOT HIS WAY OR ELSE. LOOK WHAT HE DID TO ERC WHEN THEY WOULDN’T PAY HIS CLAIMS. AIG WAS THE MARSH OF INSURERS. THE 800 POUND GORILLA YOU COULD NOT AVOID, WITHOUT THE 32 YEAR OLD ANALYSTS NAILING YOU TO THE WALL FOR LOOSING BUSINESS. THESE GUYS DO NOT DESERVE THIS. THEY ARE NOT ANYTHING LIKE THE CROOKS WHO BROUGHT DOWN COMPANIES OR THE THIEVES ON THE STREET. THINK ABOUT THE TWO GUYS AT MARSH WHO SET UP BID RIGGING AND TOOK MONEY FROM BOTH THEIR INSUREDS AND THE INSURERS VERSUS THIS CASE.THE AIG/GEN RE CASE COULD HARDLY HOLD A CANDLE TO SUCH THIEVERY.
They are all crooks of one sort or another. Granted, their errors don’t rise to the level of the Enron execs but innocent they are not. Hank must be Mr. Teflon.
Investors take risks, risks based on reliance upon individuals to perform in ways they would hope or expect. One risk investors take on, plain and simple, is the risks of executives lying.
These executives never engaged in practices that were illegal at the time, or even considered to be illegal. Misleading, perhaps. But are you trying to tell me that McDonald’s executives aren’t misleading the public on the health of their food? Or Ford misleading people on the quality of their vehicles?
My point is, it happens all around us, and sorting out lies from truth is part of life.
Ruining the lives of executives, because you are either jealous of their success, ungrateful for what they have provided for society, or trying to advance your own political career, should be considered the real wrongdoing.
I hope they appeal and win and that you all realize ex post facto rulings are not in anyone’s best interest, except those who love dictatorships.
Take on your own d*mn responsibility for your investments.
It is amazing to see executives of a large and reputable company manipulate books in order to boost stocks and mislead the public. Shame on them and those involved in transactions like this.
Manny