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Directors Of Disasters Wanted

As the title of the following “Directors Are in Demand, Even if Companies Fail” NY Times article states, high paid, do nothing directors who snoozed while the companies they “directed” went right down the tubular chute are still being sought out to “help” corpo survivors prosper.

While in some cases investors are suing members of the boards of the failed companies, shareholder advocates have for the most part focused their energies on other issues. And public outrage over the financial crisis has been mainly focused on the executives in charge of firms like Bear and Lehman.

In many cases during the real estate bubble, directors approved the strategy that paved the way for executives to make risky investments on borrowed money.

In our corporate system the directors are supposed to be in charge, not the C.E.O., yet they rarely get any of the blame because they’re typically dominated by the C.E.O.

The incestuous inbreeding that goes on in the CEO and board of directors stratosphere is so powerful that not even an A-bomb can break the lovefest. Of course, the classic response of board members from failed CCFs (which does have a grain of truth in the unlikely case where they’ve learned something from the failure) is that their hands-on experience will save their new CCFs from suffering the same fate. Uh, OK.


  1. PhilN
    September 16, 2010 at 9:23 am

    Ahem…, the NY times is not biased? The banks were forced to make those crap loans by politicians in the beltway dude.

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