x
Financial

Poll Calls for Floggings

Has Jack Grubman been punished enough?

Not even close, according to the latest Light Reading Work Poll.

Of the 181 respondents, so far, 92 percent say Jack Grubman should have faced a higher financial penalty than the wrist slap he received from the New York Attorney General's office. Eighty-seven percent say that Grubman should spend some time in the big house for his chicanery.

But jail might not be enough. A full seventy-one percent of respondents said flogging should be reinstated as a punishment.

While the respondents were a pretty vengeful lot, it's interesting to note that 73 percent said they had never lost money on a Jack Grubman recommendation.

Grubman is widely seen as a fall guy for a system that's thoroughly corrupt. Seventy percent of the respondents say that the $1.4 billion in fines levied against Wall Street banks should have been much more, and 21 percent of respondents say other penalties should have been imposed as well.

Sixty-one percent say that the investment banks involved did not learn their lesson, and 71 percent think that other analysts' sins are "about the same" as Grubman's.

The Light Reading Work Poll, Crime and Punishment, will be live until the end of this month.

— Phil Harvey, Senior Editor, Light Reading

kampar 12/5/2012 | 12:02:18 AM
re: Poll Calls for Floggings
>>While the respondents were a pretty vengeful
>>lot, it's interesting to note that 73 percent
>>said they had never lost money on a Jack
>>Grubman recommendation.

They all shorted the stocks ... ?
rjmcmahon 12/5/2012 | 12:02:15 AM
re: Poll Calls for Floggings The lack of justice in our financial markets is disheartening. Its absence causes more distrust. Distrust paints with a broad swath. And unfortunately, too many believe the cure is little bit of time and the recreation of the greed.

Excessive greed and fear creates bubbles. Neither the inflation nor the deflation of a bubble helps make for a great nation. We can and must do better. Justice must be reestablished. Let's make sure our government hears that its citizens won't tolerate such an uncivilized society.
zettabit 12/5/2012 | 12:02:15 AM
re: Poll Calls for Floggings By the very nature of having over-hyped and mis-represented a wide variety of technology stocks, Grubman & co were to a significant degree co-responsible for the massive inflation of stock prices that affected the market as a whole.

When the house of cards collapsed all stocks were affected to a greater or lesser degree, and thus anybody invested in the market (even in an index fund) lost money in the process.

In addition to flogging, other well proven methods of deterrant for the re-occurance of such abuse includes the removal of fingernails (with pliars) and branding. Neither create any long-term damage beyond some minor cosmetic changes, but would be broadly welcome as a deterrant. Hell if these punishments were administered in public, the fees from ticket sales and PPV would probably rival the fines collected by the SEC!
steve 12/5/2012 | 12:01:49 AM
re: Poll Calls for Floggings Oh puulleasse!!

This sanctimonious hand wringing has got to stop. Everyone take a pill and go to bed!

Last time I checked you cant legislate or regulate against greed and stupidity. Our process of allocating capital is the envy of the world and it has worked wonderfully for many, many decades (at least since the '33 and '34 acts). So we got a little excessive in '99 and '00 - so what! - should we throw out the baby with the bath water? We are getting dangerously close to that situation as we discover some of the ridiculous conditions in Sarbane Oxeley and the global settlement.

If anyone really believes these "reforms" will help the capital allocation process, particularly for smaller/emerging companies, you are woefully mistaken.


rjmcmahon 12/5/2012 | 12:01:47 AM
re: Poll Calls for Floggings Last time I checked you cant legislate or regulate against greed and stupidity... So we got a little excessive in '99 and '00 - so what!

There you go. Blame the victims of fraud. That'll fix our financial industry. (And you probably think domestic abuse is merely the woman's problem. You know, the husband just got a little drunk before he beat the living hell out of her and the kids. So what, right?)

The lack of any criminal prosecution reveals justice has not been applied. No justice and our "capital allocation process" is no better than Baghdad style looting. Too bad you can't fall back to the Rumsfeld argument and claiming the reason the looting occurred is because the prisons were empty. Our prisons are full, in case you haven't noticed.
NotGeorgeGilder 12/5/2012 | 12:01:06 AM
re: Poll Calls for Floggings Last time I checked you cant legislate or regulate against greed and stupidity... So we got a little excessive in '99 and '00 - so what!

ngg> I'd argue that the bulk of our laws are against stupidity - Private trials and public punishment is the standard in most repressive societies - You see, fascism isn't really all that bad - Right? - I mean you just know this guy is guilty - I mean just LOOK at him...
rjmcmahon 12/5/2012 | 12:01:01 AM
re: Poll Calls for Floggings I'd argue that the bulk of our laws are against stupidity

Are you really trying to argue that stupid laws are the problem? And exactly who legislates and enforces (or not) those "laws against stupidity"?

The equitable application of justice is a foundation for a modern and peaceful society. It's more important than so-called democratic elections. A civilized society cannot sit idly by and watch while those holding positions of authority use power unjustly. That is the kind of stupidity that causes real problems.

PS. When is Skilling going to be indicted? Did we already forget about him? And Spitzer running around for the camera, while trading some ill gotten money for no admissions of any wrong doings, is as about as honest as Rumsfeld and those WMDs.
BobbyMax 12/4/2012 | 11:56:24 PM
re: Poll Calls for Floggings A vast majority of Americans are fed up with the lack of enforcement of security frauds. Mr. Grubman got away with murder. He was involved very deeply in promoting corrupt activities at MCI. The stockholders suffered a loss of over $170 Billion.

Insider trading occurs every day in almost every company. But the SEC and the Department Of Justice fail to take actions.

Board of Directors of companies are only interested in getting benefits such as life insurance,lavish meetings, cash payments and other benefits.

The Foreign investors have collectively lost trillion of dollars of capital investment. Corporate scandals involving insider trading and other corrupt activities are not are not investigated.
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE