Friday, January 08, 2010

Goldman Sachs Sued by Shareholders

One institutional and one individual shareholder have sued Goldman Sachs for effectively hurting shareholders' interests by paying out mega bonuses to the senior executives of the firm. Read the report here.

I have long lamented the fact that the various boards of directors on Wall Street, which in theory were there to save guard the interests of shareholders never uttered one beep before, during and after the Wall Street bubble debacle and never once decided to fire a few top executives to punish them for their negligence or their excesses in fueling the bubble in the first place.

As the report from Bloomberg indicates, finally some shareholders are taking action without any help from those directors. And by the way none of these directors ever got ashamed enough of their own negligence, incompetence or their own active role in aiding and abetting the managements in the creation of toxic assets while knowing or not understanding the intrinsic riskiness of those products.

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