Face the Nation

[maat55]

I just watched Face the Nation and it had Secretary Paulson explaining an proposal to congress on a 700 billion dollar buyout of bad mortgage loans to free up the financial markets.

What was nice to see was Congressman Barney Frank and Senater Shelby agree on new regulations.

Frank wants to see CEO's of the bailed companies loose their golden parachutes where Shelby would leave it in the hands of the boards. (I agree with Frank) Both agree that the government has to regulate the financial institutions.

Both also agree that this will likely be more of Trillion dollar problem, but the government intends to hold these properties until they rebound in value then sell, in an attempt to recover the investment of our money.

[LivingAlmostLarge]

Um, yes. Why do CEOs of companies like WorldCom and Enron get golden parachutes yet the pensions of those companies were not adequately funded? WHY not use the golden parachutes for the inadequately funded? HOW is it acceptable to allow CEOs to steal from employees?

Yes you should be diversified, but when they aren't even funding pensions how is that acceptable? Explain how that isn't fraud that you say you are funding a pension plan but really aren't?

[kork13]

I don't really know what to think of all this... In another string I called it a ploy that wouldn't actually happen (I'd have lost those bets), so I'm really of the position that I'm just gonna have to trust the people we've elected to be responsible stewards for us. Hope it works out.

[maat55]

Um, yes. Why do CEOs of companies like WorldCom and Enron get golden parachutes yet the pensions of those companies were not adequately funded? WHY not use the golden parachutes for the inadequately funded? HOW is it acceptable to allow CEOs to steal from employees?

Yes you should be diversified, but when they aren't even funding pensions how is that acceptable? Explain how that isn't fraud that you say you are funding a pension plan but really aren't?

It's a tough call when it comes to private companies that are not recieveing government bailouts, for the government to go in dictate their compensation policies. But I fully agree with you that, colapsed companies where pension and stock holders loose, the CEO's should loose with them.

To add, I think that if a CEO is offered a big package and fails to improve the company, the government should be able to dismiss his compensation whether the company fails or not. This would ensure that CEO's would have to earn their keep.

[LivingAlmostLarge]

Whether it's private or not. These companies said they were going to putting 10% of salary aside. They didn't period. How is that not lying and fraud?

If you maat did it to me, offered me 10% of my salary with 1% guaranteed return and I said fine, then you never put aside the money I paid you instead you lost it, why couldn't i sue you for fraud?

I think that they have to be answerable to someone. They ran the companies into the ground, yes they "worked" hard but they ended up bankrupting people?

[maat55]

Whether it's private or not. These companies said they were going to putting 10% of salary aside. They didn't period. How is that not lying and fraud?

If you maat did it to me, offered me 10% of my salary with 1% guaranteed return and I said fine, then you never put aside the money I paid you instead you lost it, why couldn't i sue you for fraud?

I think that they have to be answerable to someone. They ran the companies into the ground, yes they "worked" hard but they ended up bankrupting people?

I don't understand how they are able to get away with not funding the promised pensions. I as an employer, I have to make monthly deposits for employee SS. Why would pensions be any different?

I was under the impression that pensions and 401k's were funded regulary and out of the reach of the company.

[LivingAlmostLarge]

No, this is not employer social security. It's a pension plan. Ask how and why companies weren't funding them is crock. Thus the PBGC, the federal government gives people whose pensions were not adequately funded 50% of what they were promised.

And Enron and Worldcom CEOs walked away smelling pretty!

[tripods68]

LAL,

The CEO of Enron committed suicide and WordCom CEO went in jail now. MOnies they receives were return back to the pay debt/shareholders/intitutions that invested in their companies after trials.

[Scanner]

That's why I always say if you want to buy an annuity, give me all your cash, and I promise to send you a check every month when you turn 65.

Promise

[glock35ipsc]

LAL,

The CEO of Enron committed suicide and WordCom CEO went in jail now. MOnies they receives were return back to the pay debt/shareholders/intitutions that invested in their companies after trials.

Just to prevent confusion, it wasn't the CEO of Enron who committed suicide, it was Cliff Baxter, a former Enron vice chairman.

CEO Ken Lay died of a heart attack months before his sentencing.