skip to main |
skip to sidebar
An overview of the credit crunch causers
Lehman-Brothers – 62 year old Richard Fuld, has been leading Lehman-Brothers for 14 years of his 39 year career at Lehman-Brothers. Last year he earned around $40 million and the previous years most probably not much less, yet for what exactly considering he was unable to keep the company from insolvency? 
Merill-Lynch – Stan O'Neal was kind enough to announce $8 billion losses before anouncing his departure with $161 million. John Thain (left) who took over Merill-Lynch after O'Neal has since saved the bank by selling it onto the Bank of America at $29 per share, at 30% of the value when he took over. For rescuing the bank and 10 months of work, he should be receiving around $50 million when leaving the company. 
American International Group (AIG) – Robert Willumstad, different to most of his colleagues in other banks, Robert has refused to take his $22 million bonus when the US government had to take over after only a few months of holding the CEO position. He said, that his rescue plan did not work and that he has not earned his bonus. 
HBOS – Andy Hornby, Europes youngest bank CEO could not do much more either. At the age of 39 he became CEO of Halifax Bank of Scotland in 2006. Recently Lloyds TSB acquired HBOS for EUR 15.47 billion. While still working for the company at the moment, he received Lloyds TSB shares worth around £2 million, a rather low bonus compared to other bankers. 
Fannie Mae – Daniel Dudd – after nearly driving the organization into insolvency he could nearly have received $10 million. As the US government had to rescue Fannie Mea, they did not want to pay him. Dudd should not be in large trouble as he apparently made $11.6 million dollar in 2007. 
Freddie-Mac – Richard Syron – similar to the case of Fannie Mae, the US government needed to rescue the organization. Syron was one of the best CEO earners in 2007 at $19 million. Despite his Golden Parachute if his employment contract was to be cancelled early he could have made around $15 million. Similarly to Fannie Mae’s CEO Dudd, the US government does not want to pay.
Lehman-Brothers – 62 year old Richard Fuld, has been leading Lehman-Brothers for 14 years of his 39 year career at Lehman-Brothers. Last year he earned around $40 million and the previous years most probably not much less, yet for what exactly considering he was unable to keep the company from insolvency? 
Merill-Lynch – Stan O'Neal was kind enough to announce $8 billion losses before anouncing his departure with $161 million. John Thain (left) who took over Merill-Lynch after O'Neal has since saved the bank by selling it onto the Bank of America at $29 per share, at 30% of the value when he took over. For rescuing the bank and 10 months of work, he should be receiving around $50 million when leaving the company. 
American International Group (AIG) – Robert Willumstad, different to most of his colleagues in other banks, Robert has refused to take his $22 million bonus when the US government had to take over after only a few months of holding the CEO position. He said, that his rescue plan did not work and that he has not earned his bonus. 
HBOS – Andy Hornby, Europes youngest bank CEO could not do much more either. At the age of 39 he became CEO of Halifax Bank of Scotland in 2006. Recently Lloyds TSB acquired HBOS for EUR 15.47 billion. While still working for the company at the moment, he received Lloyds TSB shares worth around £2 million, a rather low bonus compared to other bankers. 
Bear Stearns – 58 year old Alan Schwartz only became CEO in Jannuary 2008. After not being able to rescue its operations, he rescued the bank from insolvency by selling it to JP Morgan at only $236 million while in April 2007 it was valued at $18 billion. Bear Stearns was Wall Street’s 5th largest investment bank. 
Fannie Mae – Daniel Dudd – after nearly driving the organization into insolvency he could nearly have received $10 million. As the US government had to rescue Fannie Mea, they did not want to pay him. Dudd should not be in large trouble as he apparently made $11.6 million dollar in 2007. 
Freddie-Mac – Richard Syron – similar to the case of Fannie Mae, the US government needed to rescue the organization. Syron was one of the best CEO earners in 2007 at $19 million. Despite his Golden Parachute if his employment contract was to be cancelled early he could have made around $15 million. Similarly to Fannie Mae’s CEO Dudd, the US government does not want to pay. 
No comments:
Post a Comment