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Financial

WorldCom Handed Rules and Writ

Things didn't cool down for WorldCom Inc. last week in the run up to the Labor Day holiday.

The low point for the carrier, also known as MCI (Nasdaq: MCIT), came when Oklahoma's attorney general stung it with criminal charges. The state claims the company, and its most senior executives, defrauded investors by concealing the true facts about the operator's financial health.

True to form, the operator countered everything thrown at it by reiterating its ongoing strategy to overhaul the company and divorce itself from the Bernie Ebbers era.

WorldCom is already battling accusations of irregular traffic routing practices as it seeks to emerge from bankruptcy protection (see WorldCom Lashes Back, The Week at WorldCom: Chapter II, and The Week at WorldCom).

But the week began with WorldCom's acceptance of the 78 directives outlined in a report by the carrier's court-appointed corporate monitor Richard Breedon, a former chairman of the Securities and Exchange Commission (SEC) (see WorldCom Pats Self on Back). His directives aim to prevent any future financial discretion, and to instill a corporate culture of financial checks and processes that did not previously exist at WorldCom.

For the full version of this story, click here.

— Ray Le Maistre, International Editor, Boardwatch

optical_man 12/4/2012 | 11:29:25 PM
re: WorldCom Handed Rules and Writ ASHBURN, Va. -- MCI (WCOEQ, MCWEQ) today appointed five new members to its board of directors, increasing the total number of directors to nine. The new members include:


My Execumind tells me these new board members are nothing more than politician types escaped from their large corporations (some w/ secret hand written orders only to be opened 4 minutes before the first BOD meeting), hmm...wonder who wrote them.

1) Who in their right mind (if they've been reading recent WCOM revelations/indictiments) would join this board? Unless the BOD package was in the works for 3 months, *hint, hint*, and they've buried their heads in the sand.

2) What is served by joining this board? *hint, hint*, not gonna say, wouldn't be prudent at this juncture, but will mention that after the legal timelimit expires on the dealings of these 5 (or a subset to be obviously figured out later), the B Schools will have a glorious new chapter for this Skylab descent and the autopsy that followed.

3) Are we hoping that a BOD membership on 'any' major corp's Board of Directors, looks good on our resume? hmmm


4) What are we positioning some people onto the BOD for? Is the future written? Is there a Marshall Plan being set up for the inevitable outcome? hmmm.

5) Are all the steak knives sufficiently sharpened. Has the table been set? hmmm.

We will know soon.

whyiswhy 12/4/2012 | 11:29:20 PM
re: WorldCom Handed Rules and Writ Methinks this has more to do with maintaining (and perhaps expanding) their government business than anything else. It's reasonable to think these people are very well compenated not for the work they (hardly) do, but for bringing in their (never been convicted) good names. Carving up the carcass is also a reasonable outcome, if they canot be sustained on more or less legitimate accounting basis. Worth watching.
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