10-28-2007, 03:33 PM
|
#113 (permalink)
|
|
Banned
|
Quote:
http://online.wsj.com/article/SB1193...oo_hs&ru=yahoo
Merrill Chief O'Neal Decides
To Leave Firm, Source Says
By RANDALL SMITH
October 28, 2007 2:24 p.m.
Merrill Lynch & Co. Chief Executive Stan O'Neal has decided to leave the firm, according to a person familiar with the matter.
.....The latest board meeting came after news that Mr. O'Neal had approached Wachovia Chief Executive G. Kennedy Thompson in the past week about whether the Charlotte, N.C., bank would be interested in a combination with Merrill. Mr. O'Neal didn't consult with the board before making the phone call. Mr. Thompson, who has said he is focused on integrating two recent acquisitions, said the timing wasn't right for a deal, people familiar with the matter said.....
|
Now it looks like Merrill Lynch is "dead bank walking"....it is reported this PM
that the CEO O'Neal was dismissed by the MER board because of:
Quote:
http://www.jsmineset.com/ARhome.asp?...53&T_ARID=5410
Posted On: Saturday, October 27, 2007, 8:16:00 PM EST
The Story Of The Week
Author: Jim Sinclair
Dear CIGAs,
Ounce upon a time (last week), there was a Wall Street Icon firm, a household name in every financial home. Its name was so famous that it eclipsed the “Buttonwood Tree.”
This firm found a great Golden Hen (over the counter derivatives) that earned them billions of dollars. Then along came the Grinch of Reality, and it was required that this Icon firm properly value the product of their Golden Hen (OTC derivatives) which when no market was found laid a giant rotten egg. You see, there is no market for these special performance contracts named OTC derivatives, nor has there ever been. Therefore they have been revalued, yet not properly valued, as the value is still value-less. The loss was Icon firm shaking.
The CEO of this Icon firm knows that there is another mountain of OTC derivatives in the firm that will eclipse the meltdown cost of the discredited credit derivatives. They are called Default Derivatives. He opened talks with a firm made up of Wall Street kids with significant capital, but not an Icon of Old Blue Blood Wall Street. He knows that the next wind that blows will take the Icon firm into a net deficit capital entity, which equals broke.
The Board of Directors of the derivative blasted Icon firm was very, very upset that the CEO would open takeover talks with some street kids. They would never approve of these less than blue bloods. You see, the trophy board of directors knows a lot about many things, but less than nothing about OTC derivative as they have been praised for years by a parade of professors and mathematicians as the mother and apple pie of profit centers.
The Board of Directors in their self righteous New England religious fever of a group of wronged people fired the CEO, not realizing his attempt was to save at least the name of the Icon firm. The now unemployed CEO knows that in time the Default Derivatives exposure way exceeds the remaining capital of the Icon firm. For all intents and purposes this Icon is busted, but the Blue Blood Trophy Board has no clue. If you tried to explain why there is risk to the blue bloods of the trophy board their eyes would glass over. Some of the older members of the blue blood boards of directors of the Icon firm would not be concerned as they would be asleep before the explanation, only waking up as the Chairman declares the meeting concluded, for that is what old blue bloods do.
So the snobs have thrown out a man who never created the problem, probably didn’t understand the risk, and got blamed after the fact.
This trophy board of directors is quite satisfied with themselves this weekend. They have no idea they blew it and there is a short fused financial nuclear event about to appear in this Icon firm’s blue blood board of director’s room, because they would never let some street kids take them over, and have thrown out the man who tried to save their bacon.
Now if Icons of Wall Street finance can go belly up, what is to say that your bank or broker cannot?
Ladies and gentlemen, prepare to defend yourselves!
THIS IS IT!
|
|
|
|