Buy company, sell assets, pay huge bonuses, kill company. Gov bans you from business. In this case

Snoutport

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Sun May-08-11 12:58 PM
Original message

Buy company, sell assets, pay huge bonuses, kill company. Gov bans you from business. In this case

at least...in the UK. Four greedy little bastards who killed MG Rpver have been banned from running companies due to their greedy behavior. Why in the hell aren't we doing this in the US???

http://www.guardian.co.uk/business/2011/may/08/mg-rover-directors-banned-collapse

A little bit of the story: "Four former MG Rover directors, who paid themselves millions as they ran the car manufacturer into the ground, have been banned from acting as company directors for a combined total of 19 years."

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Skink

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Sun May-08-11 01:13 PM
Response to Original message

1. It's happening to Borders right now.

the top brass are paying out huge bonuses while they close stores. You'd think during bankrupcy proceeding you couldn't do that.

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Initech

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Tue May-10-11 09:48 AM
Response to Reply #1

8. Bankruptcy now means more for them, less for us

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elleng

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Sun May-08-11 01:16 PM
Response to Original message

2. For one thing, some don't want govt interference w monopoly,

and that approach has prevailed in too many industries lately, in U.S. Thinking of shareholders doesn't have much influence, in U.S. IMO, REAL capitalism would enable this to happen, but $$$folks, as we know, have all the power here.

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KT2000

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Sun May-08-11 01:21 PM
Response to Original message

3. Private equity firms

and holding companies do the same here in the US. It needs to be stopped there too. They will bankrupt their own companies by using them as collateral on loans and as sources for huge fees that go to the parent company. It would make sense for a bankruptcy judge to have the authority to stop this repeated behavior.

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leveymg

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Sun May-08-11 01:40 PM
Response to Original message

4. Sounds like what Cerberus Capital Mgmt did to Chrysler and GM.

Difference is, Vulture Capitalists (if they're wealthy enough) get rewarded in the US instead of thrown into jail with their confederate, Madoff. See, http://journals.democraticunderground.com/leveymg/544

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Sun May-08-11 02:37 PM
Response to Original message

5. Here it's considered

"good business".

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Snoutport

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Tue May-10-11 09:24 AM
Response to Reply #5

6. nothing good about it!

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Shagbark Hickory

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Tue May-10-11 09:29 AM
Response to Original message

7. That's a good question. The UK often copies a lot of our ideas yet we copy none of theirs. n/t

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Initech

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Tue May-10-11 09:49 AM
Response to Original message

9. This is what the republicans call "punishing success".

:eyes:

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