The Deal
Tuesday, November 24, 
4:18 pm

The Icahn Report: Financial disaster ignited by lax boards

  Share     E-Mail    Discussion (1)     Print Story

icahn.jpgCarl Icahn knows a thing or two about how companies get in trouble. The corporate raider or activist investor -- depending upon your point of view -- believes the recent implosion of once iconic financial institutions Lehman Brothers Holdings Inc., American International Group Inc., Fannie Mae and Freddie Mac could be partly blamed on risk-taking managers and their lax board of directors that allowed such behavior. "Where were the boards of directors that are supposed to be overseeing these executives?" Icahn wrote in a post on his blog, The Icahn Report. "All too often compliant boards are intimidated by managements in their cushy, well-paid worlds and refuse to rock the boat by asking hard questions and demanding CEO accountability." - Gerald Magpily

Continue reading below

Also on Dealscape





Comments

From: M A M,

The financial disasters might face the companies are not clear ,So we need more explanation about it


Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Pro Football Hall of Famer Steve Young tells us why quarterbacks make good PE investors.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

REIT IPO deja vu

Real estate sponsors that might wish to undertake an IPO will need to consider a wide variety of issues and begin to take action long before the first filing with the SEC.


Industry Insight

Loan-to-buy

Paulson's proposal to purchase an equity stake in Yellow Pages publisher Idearc is the second time in recent months an investor group has used its prepetition debt position to execute a bargain price 'exit LBO.'


Industry Insight

Managing your shareholder base

Growth companies and their PE sponsors should be wary of the pitfalls that arise when they layer on tiers of preferred stock.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.