Some of our citizentry believes that the recession (2008) was “man-made” because greedy “wall-street” people (and corporate boses) tried to make money by peddling risky investments…coupled with a selfish accumulation of personal wealth without regard for the potential negative economic impact.
It was report that 18.4 billion dollars ($18,400,000,000) in bonuses was paid out to “wall street” people. Ironically, the pay-out money was siphoned from the bailout money (provided by the U.S. tax-payers). Some feel that this action amounts to “Financial Treason” at a time when many of our companies are on the verge of extinction.
Your assignment is to get to know some of the “key players” and render an opinion regarding the above-mentioned information.
Assignment – Part 1 – Write a brief profile on each of the following individuals….and include their contribution to the current economic situation (positive/negative?):
1. Richard Fuld, former CEO, Leman Brothers
2. Allan Greenspan, former Federal Reserve Chairman
3. Robert Rubin, former CitiGroup Chairman
4. Angelo Mazilo, former Country wide CEO
5. Jimmy Cayne, former Bear Stern CEO
6. John Thain, Merrill Lynch CEO
One might ask the question….”what does this assignment has to do with this course”? The answer is “everything”! This assignment is intended to give you a minute glimpse of the “real” business world and enhance your ability to draw meaningful conclusions and make informed/sound “business” and personal decisions.
By the way, the justification given for the receipt of such an exorbitant amount of “bonus” money is as follows:
1. The money has to be paid in order to attract and keep the very best managers (high performers).
2. This is a free-enterprise system. People are entitled to as much money as they can make (or take!).
3. The bonus pay-out is 44% less than what was paid out in the previous year!!
Assignment – Part 2 – Write an opinion based on the information provided and your completion of Assignment Part 1.