Comments on: The horrible self-dealing of Ken Lewis and the principal-agent problem http://www.creditwritedowns.com/2009/04/the-horrible-self-dealing-of-ken-lewis-and-the-principal-agent-problem.html Finance, Economics and Markets Thu, 09 Feb 2012 08:49:33 +0000 hourly 1 By: OSR http://www.creditwritedowns.com/2009/04/the-horrible-self-dealing-of-ken-lewis-and-the-principal-agent-problem.html#comment-56271 OSR Mon, 27 Apr 2009 03:30:00 +0000 http://www.creditwritedowns.com/?p=8102#comment-56271 If you read the deposition, it's pretty obvious that nobody even considered the shareholders interest. The only thing that the board cared about was whether Paulson's verbal promise to "fill the holes" could be trusted. Paulson and Bernanke refused to give a written promise, because it would require disclosure. Filthy stuff, indeed, but I bet little comes of it. If you read the deposition, it’s pretty obvious that nobody even considered the shareholders interest. The only thing that the board cared about was whether Paulson’s verbal promise to “fill the holes” could be trusted. Paulson and Bernanke refused to give a written promise, because it would require disclosure. Filthy stuff, indeed, but I bet little comes of it.

]]> By: ian http://www.creditwritedowns.com/2009/04/the-horrible-self-dealing-of-ken-lewis-and-the-principal-agent-problem.html#comment-56270 ian Mon, 27 Apr 2009 00:04:00 +0000 http://www.creditwritedowns.com/?p=8102#comment-56270 hope those managers don’t have their and in the till. missing the h in hand. Great article. hope those managers don’t have their and in the till.

missing the h in hand.

Great article.

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