WE ARE: 5 women navigating our twenties in search of peace, happiness and love (or not). WE WRITE: about everything and nothing. From the insane to the mundane- you will find different paths taken, lessons learned and lives lived. WE THINK: you’ll enjoy it...Warning: Consumption of these views may leave you enlightened while intoxicated.

SO LONG, FAREWELL...

The View From Here will conclude on Friday, October 1, our third year anniversary. We would like to spend this month thanking all of our readers, followers, haters, visitors, family, friends, and fans for your continued support, encouragement, and comments over these past few years. Thanks y'all!
-The Five Spot

Wednesday, November 7, 2007

Bellinis' breakin' it down, vol i.

Remember a few weeks ago in Whose America, I reference C-suite holders (chief titles in corporate America including chief executive officer [CEO], chief operating officer [COO], chief financial officer [CFO], etc.) If no, read it now and comeback; if yes proceed . . .

There appears to be some hoopla over the resignation/termination of Stanley O'Neal, former CEO of Merrill Lynch. Here's the background you need to know per your edification and for purposes of me breakin' it down: black male (60's), CEO of Fortune 500 company [old guard company meaning very safe in terms assest allocation], just know this is not a newbie company (i.e. Microsoft, Google, eBay, etc.).


Uhh ohh . . . breaking news --- Never mind that less than 100 hours ago, Chuck Prince [such a cool name], Citigroup's CEO is stepping down over his sour performance with the company -- his famous last words as CEO per his press release were: "It is my judgment that, given the size of the recent losses in our mortgage-backed securities business, the only honorable course for me to take . . . is to step down," the potential losses to the tune of $ 8,000,000,000.

back to O'Neal


So, Mr. O'Neal is leaving and folks are debating the influence of race in his resignation/ouster. Why? be'cuz as Americans that's what we do -- race is a salient factor of the American experience. O'Neal's departure hinges on the fact that Merrill Lynch will have to report losses in excess of $5,000,000,000 [ yes, that's the correct amont of zeroes -- 5 billion] some reports believe the amount is closer to 8 billion dollars stemming from the company's overexposure in the sub-prime mortgage market (homeowners who due to their poor credit standing, lack of understanding of the homeownership enterprise, and confluence of other factors are the sub-prime mortgage market target).

Minorities, many of them poor and black, comprise a huge percentage of households that have obtained this type of mortgage loan (check out The Economist, "Of the wretched and the reckless" 9/8-14/07). got it -- good, back to the nitty gritty; so throw the history of race, a Fortune 500 company, Stanley O'Neal and his perceived role or lack of in the American Dream and you get . . .

1.
some folks are incensed that O'Neal as a black man would steer a corporate institution rooted in capitalism to engage the sub-prime mortgage market industry because of the dentrimental impact black folks have faced.

2.
And some folks feel like its racist for Merrill Lynch to part ways with Mr. O'Neal.

********************WTF***************

time for Bellini's Breakdown


First of all, working in coporate America, particularly as CEO you respond to two constituencies board of trustees and your shareholders. In both cases, the common denominator is bringin' in the benjamins. So, with that being said, so what if the market he pursued was the sub-prime mortgage market. Due to his timing in the market last year, O'Neal was the golden boy. He made Merrill Lynch plenty of money. In other words, he did his job as CEO. Now, with the housing market cooling down and folks are gettin' antsy about the lending market and the banks feel the money crunch from going overboard with the sub-prime mortgage market there are a whole bunch of write-offs in terms of loss profit for a myriad of companies, Merrill Lynch and Citigroup are included. No need to worry for O'Neal or Prince there severance package comes equipped with a platinum parachute.


It's touching folks don't want to see a brotha go, but get over it. I already told you the two constituencies that matter. Don't worry there are a few folks left with offices in the c-suite. Let's drink to that.


cheers,

Bellini


1 comment:

Anonymous said...

Good post. CEO's are front people. Most really don't do a thing. They are controlled by the two constituencies that you mentioned. Merrill and other institutions did exactly what they tell investors not to do. They put majority of their eggs in one basket and now they have to figure out a way to regain control. So of course, the first thing any corporation does to regain confidence from the "Street" is fire/let go of management. I don't think race comes in to play and I don't feel sorry for someone who gets $160 mil for being asked to leave.

By the way ladies, love the blog and thanks Dark and Stormy for the invite.