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Man of Steel?; Will SEC prove to be his kryptonite?
Topic Started: Jan 24 2009, 06:52 PM (1,184 Views)
parentofbear

Blado

Robert Steel is Democrat along with most of Wall Street actually. Most likely he will hide behind the crumbling of Golden West Financial. Their problems were predicted because of the collapsing real estate markets on the west coast. He may be in situation similar to VW/Porsche a couple months back. Was inside information involved? Probably not here's an example. Sports Compact Car reported the takeover two months earlier. They were very excited about Porsche enhanced VW cars. The predicted distruction of Wachovia's capital and the need to find a merger partner was based on default rates of adjustable mortgages in California, Nevada and Arizona was widely known. He has a pretty good defense. It was also reported he was brought on board to find a merger partner.
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Payback
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Bill Anderson
Jan 24 2009, 11:23 PM
Whatever Steel did was bad enough....

:bill:
Give the man a break. At least he knows he's looking at a great scholar when he looks at Richard Brodhead. Another admirable sales job.
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Baldo
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Payback
Jan 30 2009, 06:41 PM
Bill Anderson
Jan 24 2009, 11:23 PM
Whatever Steel did was bad enough....

:bill:
Give the man a break. At least he knows he's looking at a great scholar when he looks at Richard Brodhead. Another admirable sales job.
Steel know how to pick them.
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Duke parent 2004
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Best case: Steel didn’t know enough about the garbage on Wachovia’s books to speak authoritatively about the company’s prospects; so in speaking he proved himself an ignorant publicity hound. Worst case: He did know about that garbage; so in speaking falsehoods he proved himself a crooked publicity hound.

Because Steel is no rookie, the regulators will likely take their belts to him. One way or another, he’ll probably emerge from this story very much tarnished. Like Levicy, he, too, might undergo a name change, but one initiated informally by others. Ladies and gentlemen, allow me to introduce the new chairman of the Duke Board of Trustees, Mr. Robert Rustoff.

:biggrin:
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chatham
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There is no excuse for a person, who is heading up a major bank, to make the statements that steel did. One basic premise of investment theory is when a CEO or chairman of a board or another legal inside officer or member of the BOD's of a company says something, right or wrong, it has consequences in the markets and will affect investors in that company and the stocks price. Money will either be invested in or taken out of a company based on what a CEO has to say. Steel knows this and was wrong saying what he did whether it was the truth or not. He also knows ignorance by an insider concerning such issues is no excuse. Steels background in investment banking does not allow for excuses for something he said that he knows should not have been said unless he wanted to manipulate the wachovia stock price. Also, steel needed no experience as the head of a major bank to know that what one says can have consequences. Steels previous experience on wall street and at the US treasury and as chairman of a major universities board of trustees is experience enough for the SEC to say that saying what he did is manipulation of your companies stock price. One has to assume that what steel said was true regardless of his ignorance about the status of the company at the time he said what he said. I believe that steel knew exactly what he said in order to prop up the price of wachovia to pad his bonus upon completion of the deal. He knows he will need the money down the road.
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