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