KJH Wrote: ------------------------------------------------------- > It turns out he was married and had a 5 year old > daughter. I don’t think it’s conscience. I think > he got a glimpse of the future and it scares him. P*ssy, be a man, you’re family needs you prison or not. Id take my chances in trial.
Do you think he was suicided? SeanC Wrote: ------------------------------------------------------- > KJH Wrote: > -------------------------------------------------- > ----- > > It turns out he was married and had a 5 year > old > > daughter. I don’t think it’s conscience. I > think > > he got a glimpse of the future and it scares > him. > > > P*ssy, be a man, you’re family needs you prison or > not. > > Id take my chances in trial.
Naked, Bonuses are structured that way as a tax cheat then? You can’t have it both ways. If bonus is really salary, then it’s salary. Bonus is not a predetermined obligation of the company. Sort of like dividends… yeah we expect them but the board has to declare them. Don’t take them for granted. If you want a guarantee, buy a bond.
ymc Wrote: ------------------------------------------------------- > Do you think he was suicided? > > SeanC Wrote: > -------------------------------------------------- > ----- > > KJH Wrote: > > > -------------------------------------------------- > > > ----- > > > It turns out he was married and had a 5 year > > old > > > daughter. I don’t think it’s conscience. I > > think > > > he got a glimpse of the future and it scares > > him. > > > > > > P*ssy, be a man, you’re family needs you prison > or > > not. > > > > Id take my chances in trial. I have no pinion either way. There is almost no information to make that judgement.
KJH Wrote: ------------------------------------------------------- > Naked, Bonuses are structured that way as a tax > cheat then? You can’t have it both ways. If > bonus is really salary, then it’s salary. Bonus > is not a predetermined obligation of the company. > Sort of like dividends… yeah we expect them but > the board has to declare them. Don’t take them > for granted. If you want a guarantee, buy a bond. what if them P.bonuses like cumulative P.shares?
Dividends for cumulative pfd shares STILL must be declared by the board. They are not obligations, they are not claims on assets. Whiney finance guys want their bonuses and act like they have a claim in line with the other creditors… in fact, they got their bonus with the TARP money before the bond holders got their money!
KJH, I work at one of the GSEs, but frankly, this should be a fairly obvious statement of fact–CFOs and accountants at large corporations are responsible for managing money and reporting the accounting books. In the same manner that auditors like KPMG are not responsible for the economic performance of the company, accountants are not responsible for market decisions made by the company itself. Freddie Mac/Fannie Mae didn’t collapse because their accounting books were wrong, they collapsed becaused the single-family groups, as implicitly ordered by Congress and the president, bought risky mortgages and leveraged to obscene ratios. Accountants have absolutely no say whatsoever in these types of decisions. I fail to see how an accountant–even the CFO–is responsible for decades of decisions that came from the CEO, U.S. president and Congress. As an underwriter, we make credit decisions at the GSEs. Accountants and auditors don’t make ANY of those decisions–they don’t set pricing, they don’t set credit policy, they don’t interpret credit policy, and they don’t approve exceptions to credit policy. They simply report the facts to the public. Your particular criticism of this man is misguided and wrong. I’m sorry, but that is a fact.
It’s not a suicide. I bet my a$$ plus my CFA membership on it.
Freddie and Fannie have consistently misstated earnings and manipulated/obscured their true economic value with nefarious accounting. Warren Buffett saw it and publicly bailed out. As someone pointed out there have been 3 major accounting scandals at GSEs this decade. In this dead guy’s roles, he directly participated in this. Yes, congress and others put pressure on him but remember *an accountants job is to tell the story correctly* and then remember all that stuff about conservitism. Remember all that ethical stuff that even accountants have to go by. Remember how well whistleblowers are treated in this country (not being sarcastic… they ARE treated well). He didn’t do his job correctly, or we wouldn’t be in this mess. IMHO, the accountants at the GSE’s should’ve made balance sheets that are readable and make sense; then, even the dumbasses in congress would’ve realized it was a silly house of cards. He is likely guilty of something BIG or he was killed. I find either of those scenarios more likely than a 41 year old father of a 5 year old daughter killing himself just because of pressure at work!?! CEO and CFO are responsible for the care of the corporate assets. The buck stops with them. Every CEO and CFO will be pressured from employees, bondholders, shareholders, politicians, etc. They certainly weren’t complaining about what an impossible mission they had when their stock was $50+!
KJH Wrote: ------------------------------------------------------- > Freddie and Fannie have consistently misstated > earnings and manipulated/obscured their true > economic value with nefarious accounting. Warren > Buffett saw it and publicly bailed out. As > someone pointed out there have been 3 major > accounting scandals at GSEs this decade. In this > dead guy’s roles, he directly participated in > this. Yes, congress and others put pressure on > him but remember *an accountants job is to tell > the story correctly* and then remember all that > stuff about conservitism. Remember all that > ethical stuff that even accountants have to go by. > Remember how well whistleblowers are treated in > this country (not being sarcastic… they ARE > treated well). He didn’t do his job correctly, or > we wouldn’t be in this mess. IMHO, the > accountants at the GSE’s should’ve made balance > sheets that are readable and make sense; then, > even the dumbasses in congress would’ve realized > it was a silly house of cards. > > He is likely guilty of something BIG or he was > killed. I find either of those scenarios more > likely than a 41 year old father of a 5 year old > daughter killing himself just because of pressure > at work!?! > > CEO and CFO are responsible for the care of the > corporate assets. The buck stops with them. > Every CEO and CFO will be pressured from > employees, bondholders, shareholders, politicians, > etc. They certainly weren’t complaining about > what an impossible mission they had when their > stock was $50+! I have a few friends and acqutences that killed themseves, one did it because his girlfriend left him, he was twenty one, he was a really good looking and charming guy, it was very painfull for us but it still didn’t make any sense. people who end themelves are generally not acting rationally. also most accountants have no say whatsoever in the operations of a company we only record transactions.
Wow, KJH, you really need to get facts before you comment on this stuff. First of all, the guy was a 34/35-year-old accountant when the accounting scandal blew up 6 years ago. Word has it that this guy was highly highly ethical, which is why he was promoted up to CFO—in SEPTEMBER of 2008, AFTER conservatorship. And finally, the agency investigating Freddie Mac stated publicly yesterday that he was not even on the radar of the investigation and was suspected of no wrongdoing whatsoever. This isn’t difficult information to find—this was in numerous news reports. I suggest that you get the facts before you indict a person on a public forum.
I think he is a good guy, too. That’s why I think he was suicided…
ymc Wrote: ------------------------------------------------------- > I think he is a good guy, too. That’s why I think > he was suicided… you should have retired your ID after your legendary post of how GS posted a profit.
Yeah, right… there were 180 federal employees monitoring GSEs BEFORE they blew up. Like they really know what’s going on now? Because of the CRAP accounting at these places no one knows what the heck their liabilities are. I’m glad the gov’t took them over because they were run as stupidly as the government anyway.
KJH Wrote: ------------------------------------------------------- > Naked, Bonuses are structured that way as a tax > cheat then? You can’t have it both ways. If > bonus is really salary, then it’s salary. Bonus > is not a predetermined obligation of the company. > Sort of like dividends… yeah we expect them but > the board has to declare them. Don’t take them > for granted. If you want a guarantee, buy a bond. PART of the reason is due to the tax code - a company is limited in the deduction it can take in per employee salary, but there’s no limit to the “bonus” deduction they can take. But it’s also good to leave part of the salary discretionary. Actually in the case of AIG, the bonuses were contractual obligations of the company, as many employees were taking 0 zero salary in exchange for the guaranteed “bonus” (again, bonus in name only). Whatever happened with all that AIG outrage? Oh right, nothing.
needhelp Wrote: ------------------------------------------------------- > ymc Wrote: > -------------------------------------------------- > ----- > > I think he is a good guy, too. That’s why I > think > > he was suicided… > > you should have retired your ID after your > legendary post of how GS posted a profit. My legendary post was “Can I take L2 before I passed L1?” 
KJH Wrote: ------------------------------------------------------- > Yeah, right… there were 180 federal employees > monitoring GSEs BEFORE they blew up. Like they > really know what’s going on now? Because of the > CRAP accounting at these places no one knows what > the heck their liabilities are. I’m glad the > gov’t took them over because they were run as > stupidly as the government anyway. You have no idea what you’re talking about, with all due respect. Your statement is an obvious fallacy since the regulators needed to determine assets and liabilities to determine if the GSEs were beyond their capital ratio requirements and both institutions have had outside auditors for years and years, such as PwC. The facts are so obvious that it’s absurd to even argue this point, but accounting was NOT the reason the GSEs were taken over–as the historical record CLEARLY states, the market collapsing 20% took down the GSEs’ assets to the point where they had insufficient capital to cover their liabilities.
kkent is dropping some serious knowledge in this thread…
Yeah… right and PwC never lies? You have no idea what you’re talking about with all due respect. I’m telling you that GOOD, honest, conservative accounting would’ve prevented ALL of this mess. Good accounting, good reserves, transparency, etc.
kkent, isn’t it even remotely possible that this guy cooked some books?