Joe Cassano has been invisible for so long – since the 2008 crisis, the former head of AIG’s now-notorious financial products division has not given a media interview and is only rarely photographed – that it was a revelation to watch his appearance on Capitol Hill.
Mr Cassano’s mystique was such, and the expectations of him so low, that my first impression was that he was a good witness. His co-operative, friendly, somewhat geeky demeanour in front of the Financial Crisis Inquiry Commission was unlike that of a brash master of the universe.
This helped him in his striking assertion that AIGFP, which made multi-billion dollar mark-to-market losses on its portfolio of credit default swaps and turned AIG into the dark heart of the financial crisis, did not make any mistakes in credit risk management. Read more
If you were investing in an initial public offering, would you not want the company’s chairman, chief executive and “product architect” – the most important individual to the enterprise – at least to work full-time?
I ask this because Elon Musk, the chairman and chief executive of Tesla Motors, the electric car maker that held its Nasdaq IPO successfully on Tuesday, does not. Read more
Small corporate earthquake, not many dead seems to be the outcome of the Supreme Court’s ruling on the 2002 Sarbanes-Oxley Act.
There were fears that the Supreme Court could strike down the whole of Sarbanes-Oxley as part of its ruling on the Public Company Accounting Oversight Board, rendering all of US post-Enron corporate reform legislation null and void. Read more
The financial services bill that has emerged from Congress, and will probably now pass the Senate and the House of Representatives looks like as decent a compromise as anyone might have expected.
The US method of lawmaking – lobbying and jockeying in two different legislatures followed by a marathon sausage-making session in which one clause is traded off against another – is not pretty. Read more
Reading the Supreme Court’s judgments finding fault with the convictions of Jeff Skilling of Enron and Conrad Black, it is clear that Congress must act to close a loophole in the law.
Although the Supreme Court decision narrowing the “honest services” category of wire fraud to bribery and kickbacks is well-argued, the US needs to include fair dealing as well. Read more
Luke Johnson has a great column in the FT – written from experience – on why large companies are more prone to infighting and less enjoyable places to work.
He writes: Read more
Over-expansion is something that bedevils many public companies, particularly retailers. Under stock market pressure to keep growing rapidly, they lose the quality that originally set them apart.
That has been a problem for many companies, including McDonald’s and Starbucks. It also led to the firing of Mickey Drexler, the former chief executive of Gap, in 2002. Mr Drexler has now made an impressive return to form at J.Crew. Read more
Oprah Winfrey and Richard and Judy beware, there is a new television chat show figure who dominates the best-seller book list – Glenn Beck, the conspiracy-minded right-wing Fox News host.
Mr Beck’s power to propel thrillers to the top of the bestseller lists by recommending them to his devoted audience has been noted before but he has now managed to put Friedrich Hayek up there too. Read more