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From: raylopez99 <r...@y...com>
Newsgroups: alt.politics.republicans,misc.invest.stocks,misc.invest.mutual-funds,alt.
fan.rush-limbaugh,soc.culture.usa
Subject: Re: Are the officers of failed Wall Street firms being held accountable?
Date: Thu, 2 Oct 2008 17:49:18 -0700 (PDT)
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Well, good question. Now read the story below and it will indirectly
answer your question.

Warren Buffett, when he invests in these Wall Street companies, is
asking the officers not to sell their shares for several years.

Do you think Uncle Sam will do the same? No. Uncle Sam, clueless, will
fork over billions of dollars in loans (not even equity, so taxpayers
risk all the downside but get none of the upside) while these jokers
then dump their options whenever the vest, or no later than the day
after they vest.

Wall Street has no loyalty, unless you force them. This Buffett
knows, but our government does not. The government will lose
billions, if not trillions, on this bailout. Buffett will profit
(having an equity stake rather than foolishly spending money on buying
toxic junk loans).

That's why if given a choice between investing your hard earned money
with Warren Buffett or the US government, most people would chose the
former. Unfortunately, we have no such choice. Kiss your portion of
the $800 billion goodbye. How many taxpayers does it take to collect
$800,000,000,000? Quite a few.

RL

Goldman Executives Restrained From Stock Sales in Buffett Deal
By Christine Harper

Oct. 2 (Bloomberg) -- Goldman Sachs Group Inc.'s top four executives
agreed to hold on to 90 percent of the stock they own in the company
as part of Goldman's agreement to raise money from Warren Buffett's
Berkshire Hathaway Inc.

Chief Executive Officer Lloyd Blankfein, Chief Financial Officer David
Viniar and Co-Presidents Gary Cohn and Jon Winkelried are named in the
``material definitive agreement'' disclosed by New York-based Goldman
in a regulatory filing today.

The accord prevents the executives, their families and their estates
from selling more than 10 percent of the common stock they own until
Oct. 1, 2011, or until Berkshire redeems its $5 billion in preferred
stock, whichever comes soonest. Blankfein last month turned to
Buffett, the second-richest American and a cult figure in the
investing world, to shore up the investment bank's capital base and
restore market confidence after Goldman's stock tumbled and its
borrowing costs spiked.

``The bet he's making is not just on the horse but on the jockeys,''
said Douglas Ciocca, a managing director at Renaissance Financial
Corp. in Leawood, Kansas, which manages $1.8 billion including Goldman
shares. ``That's the kind of commitment that is really being sought
after in a lot of efforts to protect investors.''

Blankfein, 54, owned 3.4 million shares of Goldman common stock as of
Feb. 11, according to Goldman's 2008 proxy statement. Cohn, 48, owned
2.04 million shares, Winkelried, 49, owned 2.89 million shares and
Viniar, 53, owned 1.91 million shares, according to the same filing.

`Keep Your Money Here'

``It certainly is a reinforcement of Warren Buffett saying `you have
to keep your money in here if you have my money,''' said Eleanor
Bloxham, president of the Corporate Governance Alliance in Columbus,
Ohio, which provides board education and advisory services. ``It is
something investors would like to see.''

Lucas van Praag, a spokesman for Goldman in New York, didn't reply to
calls and e-mails seeking comment.

``Warren Buffett is known as one who relies on the people running
organizations almost as much as the core business itself,'' said
Michael Yoshikami, president and chief investment strategist at YCMNet
Advisors in Walnut Creek, California, which manages $1 billion
including Berkshire Hathaway stock.

On Oct 2, 4:44 pm, HiC <b...@y...com> wrote:
> 700 billion of the taxpayer's money give or take to bail out these
> supposedly public sector enterprises. So, what about the officers and
> boards of directors of these various firms who were ultimately
> responsible for the decisions that caused the problems? Theoreticaly
> these are the people who bear the weight of responsibility for these
> firms, isn't that why they're supposedly in these positions - and
> getting the big payday?
>
> They're asking you and me to foot the bill, what are they who have
> been profiting the most going to forfeit? Are their assets being
> garnished? Are any trophy wives having to give up any jewelry or miss
> some appointments at the salon? Any of their kids going to pull out of
> private schools?
>
> Or do the conditions of their positions insulate them from personally
> feeling any real pain?

 
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