They did this on purpose
By Daniel at 21 November, 2008, 8:15 pm
“As an engineer in the oil and gas industry, I work on risk management issues all the time. We look at the worst case potential loss for investments we make in upgrading equipment like a platform or refinery. If there is a big risk of loss, we would put in the safety system to reduce the risk. After we design against failure, there are safety factors thrown in for good measure.”
How has the financial risk management process in the financial institutions failed to badly? They have our hard earned money. With alll these smart people running these organizations, they could not have just let this slip. The answer is that they purposefully took risks to benefit themselves in the short term ignoring the risks to the public. Why are these people not facing the music? They must be brought to task. The CEO of Lehman walked away with his $550 million in pay intact. This is plain wrong. He needs to be made to return this money and in addition, should be tried for white collar crimes. If this does not happen, many people will loose faith in our system.
After putting 125 B of TARP money into C, after several capital injections from Soveriegn Wealth Funds and Saudi Princes, C is still on the brink. That leads me to one conclusion. Nobody believes what they say about liquidity position or balance sheet.
If that amount of money didn’t help at all (and it appears it didn’t) then their situation is much, much worse than anyone thought and Paulson needs to be tarred and feathered.
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