Comments on: Uncle Sam should claw back Wall Street bonuses

By: Jeff Parsons

Jeff Parsons — Sat, 07 Mar 2009 21:52:21 +0000

In my opinion SOX 304 doen’t go far enough to prevent what is a growing pattern of bonuses paid based on short term profits at the expense of ignoring risk (eg.AIG). We need new SEC/Bankruptcy regulation allowing courts and regulators to claw back officer bonuses for a multi year (3-5) period prior to a public company bankruptcy. Give shareholders the weapons to keep executive robbery of corporate value in check.

By: Leonard Gehl MD

Leonard Gehl MD — Fri, 19 Dec 2008 01:55:08 +0000

I’m not a lawyer but: the claw back provision under section 304 of sarbanes-oxley act to recover CEO and CFO bonuses based on bogus profits from the scam credit default swaps may just be the tip of the iceberg. Caveat Venditor (seller beware) law could show there is a duty of care. Thus creating a product that is really not a mortgage-backed security but a loan made by buyers, held by a brokerage house, financed through short positions and linked to a possible mortgage default was obviously not eplained to the buyers. Nobody would buy that.

By: oliver jin

oliver jin — Sun, 05 Oct 2008 16:51:46 +0000

damn right! get our money back from those bastards

By: Bruce Porter

Bruce Porter — Sun, 05 Oct 2008 05:18:50 +0000

Get over it! The chain of financial malfeasance runs from originators of “liar loans” through the banks, rating firms, investment firms, hedge funds, etc. To single out only executive compensation is short sighted, stupid and childish.
Review the system, incorporate judicious fixes and move on. If criminal actions are discovered then proscecute.

By: Francine McKenna

Francine McKenna — Sat, 04 Oct 2008 15:29:20 +0000

There is a provision in Sarbanes-Oxley for clawing back ill-gotten bonuses. Just get the SEC to do their job. I wrote about it here. http://www.retheauditors.com/2007/12/hey-sec-clawback-those-stolen-bonuses.html

By: Randy Picker

Randy Picker — Sat, 04 Oct 2008 14:21:13 +0000

Yes, on 9/23, I suggested for these reasons that we should build a phantom bankruptcy regime into the bailout bill. See http://uchicagolaw.typepad.com/faculty/2008/09/bailouts-and-ph.html