Shareholders

bazster

Just heard a B+B shareholder on the radio whining about losing his money when the government bailed out the company.

His argument, such as it was, was that the company was in rude good health and didn't need to be bailed out. How did he know this? Because in the prospectus for B+B's rights issue shortly before it's collapse the directors painted a glowing picture of the company's health.

These, of course, would have been the very same directors whose reckless, if not criminal, lending practices destroyed the company. Perhaps instead of whining about the government's actions the shareholders should be quietly contemplating their own failure to understand what the directors were up to and to hold them to account.

agent_orange_2

Yes, wouldn't it be nice to see some of the bank CEO's facing a prison sentence.

Let's take, for example, RBS - announced £10 billion profit and increase dividend.
Within weeks they announce a £12 billion rights issue (biggest in European history).
Basically stating an increase in write downs but underlying business strong.

Fred the shred, having presided over this disaster for the bank, workers and share holders, then steps down with massive pay out.

Surely, at the very least, he should be stripped of his Knighthood.