Comments on: Countertop’s Solution To Wall Streets Problem http://www.countertopchronicles.com/2008/09/23/mikes-solution-to-wall-streets-problem/ "Run by a gun zealot who's too blinded by the NRA" - Sam Penney of RaisingKaine.com Tue, 16 Feb 2010 04:45:04 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: DirtCrashr http://www.countertopchronicles.com/2008/09/23/mikes-solution-to-wall-streets-problem/comment-page-1/#comment-3803 DirtCrashr Tue, 30 Sep 2008 00:51:20 +0000 http://www.countertopchronicles.com/?p=4655#comment-3803 Jail sentences work for me - and no Club-Fed tennis-jail. Send in the Mafia (or some Saudis or Russians) to collect on the debt. Jail sentences work for me – and no Club-Fed tennis-jail. Send in the Mafia (or some Saudis or Russians) to collect on the debt.

]]> By: wolfwalker http://www.countertopchronicles.com/2008/09/23/mikes-solution-to-wall-streets-problem/comment-page-1/#comment-3763 wolfwalker Thu, 25 Sep 2008 12:51:33 +0000 http://www.countertopchronicles.com/?p=4655#comment-3763 No, there isn't. However, such creatures are more creative at finding ways to evade punishment than you are at finding ways to punish them. Case in point: <i>However, if they fail as a business concern, then their Senior executives will be personally liable for any outstanding losses incurred by the failure (with no option for bankruptcy) and will face mandatory, lengthy jail sentences.</i> I see several problems with this approach right away. 1) senior executives WILL find ways to protect their personal assets from seizure. In which case they won't care about keeping their company solvent any more than they do now. Which is to say, the good ones will care, and the greedy self-centered ones won't. Two or three years at Club Fed, and fifty mil waiting when you get out? Sounds like a bargain to me. 2) What do you do about a company that fails despite the CEO's best efforts to keep it running? No judge, no jury will jail a CEO for doing his honest best to keep a company going. Dishonest CEOs will use that as an escape tactic. 3) if a senior executive is guilty of wrongdoing, he'll leave the endangered company before it fails. The company will then be unable to find replacements because all the candidates will be scared of getting jailed and left paupers because of debts they didn't incur. 4) every time a company replaces its CEO, there will be rumors that it's because the company is financially unsound -- causing the company's stock to drop, and quite possibly making it unsound even if it wasn't to start with. No, there isn’t. However, such creatures are more creative at finding ways to evade punishment than you are at finding ways to punish them. Case in point:

However, if they fail as a business concern, then their Senior executives will be personally liable for any outstanding losses incurred by the failure (with no option for bankruptcy) and will face mandatory, lengthy jail sentences.

I see several problems with this approach right away.

1) senior executives WILL find ways to protect their personal assets from seizure. In which case they won’t care about keeping their company solvent any more than they do now. Which is to say, the good ones will care, and the greedy self-centered ones won’t. Two or three years at Club Fed, and fifty mil waiting when you get out? Sounds like a bargain to me.

2) What do you do about a company that fails despite the CEO’s best efforts to keep it running? No judge, no jury will jail a CEO for doing his honest best to keep a company going. Dishonest CEOs will use that as an escape tactic.

3) if a senior executive is guilty of wrongdoing, he’ll leave the endangered company before it fails. The company will then be unable to find replacements because all the candidates will be scared of getting jailed and left paupers because of debts they didn’t incur.

4) every time a company replaces its CEO, there will be rumors that it’s because the company is financially unsound — causing the company’s stock to drop, and quite possibly making it unsound even if it wasn’t to start with.

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