I ask, where was Deloitte & Touche, CPAs (D&T), which Merrill paid $57 million in 2007, while this went on? Didn't D&T understand the implications of Merrill's incentive compensation scheme on Merrill's risks and accounting? If you will, Wall Street was a "heads we get bonuses, tails the public gets our firm's bankruptcy" game. Merrill's 2008 proxy statement shows it has eleven directors. They include: Armando Codina, President of Flagler Development Group, a real estate investment company; John Thain, Merrill's CEO; Virgis Colbert, Senior Advisor to Miller Brewing; Alberto Cribiore, Principal of Brera Capital Partners, a private-equity firm; Aulana Peters, Gibson Dunn & Crutcher partner and Member of the International Public Interest Oversight Board of the International Federation of Accountants, former member of the AICPA Public Oversight Board, Former SEC Commissioner; Charles Rossotti, Advisor to the Carlyle Group, a private investment firm: John Finnegan, Chairman of Chubb Corporation; Ann Reese, formerly Principal in Clayton Dubilier & Rice, an investment firm. Do any of these people know anything? In 2007 Goldman Sachs said something about a 25-sigma event. Amazing. I don't think we'd experience a 25-sigma event once in a billion years! My 29 October and 30 November 2008 posts mention Wall Street pay.
Can anybody play this game? Any financial institution holding federally insured deposits should prohibited from engaging in this type of gambling.