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A Theory That Wells Fargo (WFC) Numbers Are Bogus (C)(JPM)(BAC)
The question has come up in relationship to the last quarter reported by Wells Fargo (WFC). According to The New York Post, "Because of the eroding quality of its loan portfolio, Paul Miller, an analyst for Friedman, Billings, Ramsey & Co., believes Well Fargo will have to add up to $2 billion in provision expenses next quarter - money set aside to cover bad loans." The thinking here is that Wells Fargo has a substantial portion of its mortgage loan portfolio in geographic areas where housing prices are still falling rapidly and defaults are likely to rise. If Wells Fargo has been putting lipstick on its pig, the stock could take a sharp fall. Over the last three months, WFC shares are up almost 20%. That contrasts to drops in shares of Citigroup (C), JPMorgan (JPM), and Bank of America (BAC). If, due to an impression that it is doing poorly, Wells Fargo moves down as much at Citi has, its shares would go from their current level of $32 to about $26. Douglas A. McIntrye Source: 24/7 Wall St. | 19 Oct 2008 | 3:20 pm PREVIEW-Oil majors to post bumper quarter amid crude crash* Top oil companies report with oil prices half their peakSource: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 3:18 pm Stocks eye earnings for economic cluesNEW YORK (Reuters) - Even as credit market strains show signs of easing, a barrage of earnings will steal the spotlight this week as Wall Street looks for a picture of how profits will fare in the face of a severe economic slowdown.Source: Reuters: Business News | 19 Oct 2008 | 3:09 pm Changing fear factor, cheaper stocksLONDON (Reuters) - Predicting what financial markets will do at the moment is more than a mug's game, given massive levels of volatility, but certain factors have arisen recently that may put investors in a new frame of mind this week.Source: Reuters: Business News | 19 Oct 2008 | 3:08 pm S.Korea joins global rescue, crisis summit plannedSINGAPORE/LONDON (Reuters) - South Korea joined efforts on Sunday to shore up banks and markets pummeled by the biggest economic crisis since the Great Depression which world leaders said called for a coordinated global response.Source: Reuters: Business News | 19 Oct 2008 | 3:07 pm Powell backs Obama for PresidentColin Powell, the former Republican US secretary of state, endorsed Barack Obama, the Democratic presidential candidate, in the latest sign of fracturing unity in the Republican party ahead of next month's electionSource: FT.com - US homepage | 19 Oct 2008 | 2:30 pm 'High School Musical 3' dances into movie theatresLOS ANGELES, Oct 19 (Reuters) - Breezy, bouncy and bursting with enthusiasm, "High School Musical" makes its big-screen debut around the world this week in what could be the year's biggest family movie...Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 2:15 pm UK economy 'already in recession'The UK economy has "deteriorated dramatically" in the last three months, and is already in a recession, top forecasters suggest.Source: BBC News | Business | World Edition | 19 Oct 2008 | 2:05 pm NewsWatch: It's tough being a hedge fund managerTo say that Andrew Lahde "hates" the hedge fund business would be an understatement. He’s shutting down his small California hedge fund, Lahde Capital, and vows never to manage money for other people again. The fund is notable for having returned 866 percent betting against the subprime collapse.Source: MarketWatch.com - Top Stories | 19 Oct 2008 | 1:00 pm Bidders emerge for Royal Bank of Scotland unitRead full story for latest details.Source: Business and financial news - CNNMoney.com | 19 Oct 2008 | 12:52 pm Laid-off factory workers in China say prospects grimFrustrated Chinese workers left jobless when a major toy maker went bust said Sunday they might have to go home in debt, as more factories face failure due to the global financial crisis.Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 12:42 pm Is the Google-Yahoo pact a monopoly?Source: Business and financial news - CNNMoney.com | 19 Oct 2008 | 12:31 pm S.Korea joins global rescue, crisis summit planned (Reuters)
Source: Yahoo! News: Business | 19 Oct 2008 | 12:27 pm Gas prices stay below $3Gas prices continued their decline one day after falling below the $3 barrier for the first time in nearly nine months, according to a daily survey of credit card swipes released Sunday.Source: Business and financial news - CNNMoney.com | 19 Oct 2008 | 12:23 pm Bush plans world summit to discuss crisisPresident George W. Bush on Saturday announced his intention to host a summit of world leaders to deal with the financial crisis that has surged across the globe this yearSource: FT.com - US homepage | 19 Oct 2008 | 11:44 am Bush, European leaders propose summits on economyPresident Bush announced on Saturday a plan for world leaders to meet to discuss the global economic crisis.Source: MarketWatch.com - Top Stories | 19 Oct 2008 | 11:44 am Cox Wants More Disclosure On Credit Default Swaps, Which He Should Have Asked For Years Ago
SEC Chairman Christopher Cox may go down in history as the worst person to ever run his agency. He has been flat-footed and tardy on almost every criticial action that the SEC could have taken to effect or correct events which lead to the financial system's meltdown. In particular, he did nothing to encourage the examination and regulation of mortgage-back securities and the tremendous levels of leverage taken on by the largest banks and brokerages. To prove that he can still be slow to ask for additional steps to help monitor the markets, he has called for more transparency and regulation of the huge credit default swaps market. In an opinion piece in The New York Times, Cox writes: "...despite its enormous size, the credit-default swaps market has operated in the shadows. There is no public disclosure nor any legal requirement for these contracts to be reported to the Securities and Exchange Commission or any other agency." It is odd that Cox has not asked fo that until now. "Because these instruments have been bought and sold widely and in many cases anonymously, they have trapped the large financial institutions in a web of transactions." That is something that any intelligent regulator, banker, or economics professor has known for a long time. "...the Securities and Exchange Commission should be given explicit authority to issue rules against fraudulent, deceptive or manipulative acts and practices in credit-default swaps." Why didn't Cox insist on thet years ago? Cox has gone a long way to prove what a tool and buffoon he is. Perhaps Congress can look into how such a boob got the job of running the SEC. Douglas A. McIntyre Source: 24/7 Wall St. | 19 Oct 2008 | 11:39 am S.Korea to guarantee banks' foreign currency debtsSouth Korea announced measures Sunday to shore up its banks by guaranteeing their external debt and pumping more money into the financial system amid the global credit crisis. The...Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 11:28 am Laid-off workers in China say prospects grimFrustrated Chinese workers left jobless when a major toy maker went bust said Sunday they might have to go home in debt, as more factories face failure due to the global financial crisis.Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 11:20 am French gov't praises under-fire IMF chiefThe French government on Sunday praised IMF chief Dominique Strauss-Kahn for his handling of the financial crisis, after news broke of an investigation into his alleged affair with a...Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 11:16 am Dutch prepare to pump $12 billion into ING: reportLONDON/AMSTERDAM (Reuters) - Dutch financial group ING is in talks with the Dutch government about a state-backed cash injection estimated to be worth up to 9 billion euros ($12.12...Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 11:10 am Dutch prepare to pump $12 billion into ING: reportLONDON/AMSTERDAM (Reuters) - Dutch financial group ING is in talks with the Dutch government about a state-backed cash injection estimated to be worth up to 9 billion euros ($12.12 billion), the Sunday Times reported.Source: Reuters: Business News | 19 Oct 2008 | 11:10 am Leaders to rethink global financePresident George Bush invites world leaders to the US by the end of the year to discuss global financial reforms.Source: BBC News | Business | World Edition | 19 Oct 2008 | 10:32 am Indian squeezeHow resilient is India's booming economy?Source: BBC News | Business | World Edition | 19 Oct 2008 | 10:07 am S Korea guarantees foreign loansSouth Korea's government agrees to provide the country's banks with guarantees for foreign-currency loans.Source: BBC News | Business | World Edition | 19 Oct 2008 | 9:43 am Iran: OPEC needs to cut output to avoid price fallTEHRAN (Reuters) - Iran's oil minister renewed his call for OPEC to cut production when it meets later this week, saying this was the only way to prevent crude prices falling further, the...Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 9:38 am Iran: OPEC needs to cut output to avoid price fallTEHRAN (Reuters) - Iran's oil minister renewed his call for OPEC to cut production when it meets later this week, saying this was the only way to prevent crude prices falling further, the official IRNA news agency reported on Sunday.Source: Reuters: Business News | 19 Oct 2008 | 9:38 am Magnum D'Or Resources Issues JV Update & ClarificationFORT LAUDERDALE, Fla., Oct. 19 /PRNewswire-FirstCall/ -- Magnum D'Or Resources, Inc. (OTC Bulletin Board: MDOR - News) announces in an effort to squelch unfounded...Source: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 8:06 am UBS boss aims to rebuild as CS steps into limelightZURICH (Reuters) - UBS Chairman Peter Kurer is a stern lawyer who embodies the values of conservative Swiss banking -- the exact qualities the bank is desperate to revive after a disastrousSource: Infocious RSS raw feed - channel BNewsBusiness | 19 Oct 2008 | 7:39 am UBS boss aims to rebuild as CS steps into limelight (Reuters)
Source: Yahoo! News: Business | 19 Oct 2008 | 7:39 am UBS boss aims to rebuild as CS steps into limelightZURICH (Reuters) - UBS Chairman Peter Kurer is a stern lawyer who embodies the values of conservative Swiss banking -- the exact qualities the bank is desperate to revive after a disastrous venture into risky investment banking.Source: Reuters: Business News | 19 Oct 2008 | 7:39 am Marvel Studios Chairman David Maisel: Hollywood's Iron ManThe gig: Chairman of Marvel Studios, the producer of this year's hits "Iron Man" and "The Incredible Hulk," and executive vice president of its publicly traded parent company Marvel Entertainment, which controls a library of more than 5,000 comic book characters including Spider-Man and X-Men. Under Maisel's leadership, Marvel transformed itself from a company that licensed its characters to other studios to a full-fledged studio that produces its own $100-million-plus superhero movies and keeps most of the profits. Over the last two years, Marvel has doubled its stock price, increasing its value to about $2.5 billion.Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am The work of playNurtured by California know-how and creativity, the video game industry has become a prolific generator of jobs and wealth for the state. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am New law stalls foreclosure filingsA new state law requiring lenders to contact homeowners before foreclosure filings led to a dramatic drop in foreclosure activity in California in September, according to the website ForeclosureRadar.com...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am In desperate times, scammers pouncePhishing expeditions are on the rise, with customers of struggling and failed banks the latest favored victims. ...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Building code trend favors fire sprinklersA construction industry group opposes requiring such systems in new homes, but says it's not about money.Six people were in the St. Michaels, Md., house when the smoke alarm went off two summers ago. The sound woke one, who was a light sleeper, according to news reports. And she managed to rouse two of her friends. But three others died in the blaze. Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am Marvel Studios Chairman David Maisel: Hollywood's Iron ManThe gig: Chairman of Marvel Studios, the producer of this year's hits "Iron Man" and "The Incredible Hulk," and executive vice president of its publicly traded parent company Marvel Entertainment, which...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Building code trend favors fire sprinklersA construction industry group opposes requiring such systems in new homes, but says it's not about money. Six...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Fixing common money mistakesA few small changes in the way you handle spending and saving can prevent a budget crisis, experts say.Everybody makes mistakes. But when it comes to money, even little errors can prove devastating. Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am Bad tidings in the retail realmThat ugly 733-point nose dive by the Dow Jones industrial average on Wednesday? Blame Eva Metoyer.Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am New law stalls foreclosure filingsA new state law requiring lenders to contact homeowners before foreclosure filings led to a dramatic drop in foreclosure activity in California in September, according to the website ForeclosureRadar.com. The effect of the state law is so dramatic, the website says, that it will make monthly foreclosure statistics worthless as barometers of housing market conditions.Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am The work of playNurtured by California know-how and creativity, the video game industry has become a prolific generator of jobs and wealth for the state.First of three parts Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am In desperate times, scammers pouncePhishing expeditions are on the rise, with customers of struggling and failed banks the latest favored victims.The economic meltdown is not devoid of economic opportunities. There's one group of folks who might do just fine: scammers. Source: L.A. Times - Business | 19 Oct 2008 | 7:00 am Complaints about healthcare billing practicesSource: L.A. Times - Business | 19 Oct 2008 | 7:00 am Bad tidings in the retail realmThat ugly 733-point nose dive by the Dow Jones industrial average on Wednesday? Blame Eva Metoyer.Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Fixing common money mistakesA few small changes in the way you handle spending and saving can prevent a budget crisis, experts say. Everybody...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Fit for a Hollywood mogulThe restoration of a Hancock Park home built by Harry Warner retains the integrity of the original design. Hollywood's...Source: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Complaints about healthcare billing practicesSource: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Flickers of a bygone eraLocation: Hancock Park neighborhood of Los AngelesSource: Infocious RSS raw feed - channel BNPaperBusiness | 19 Oct 2008 | 7:00 am Economic Preview: Existing-home sales expected to hold up againDespite the ongoing turmoil in the credit and housing markets, sales of preowned homes have held up surprisingly well over the past year, especially compared with sales of new homes. Economists expect that decoupling to continue in the September data.Source: MarketWatch.com - Top Stories | 19 Oct 2008 | 4:01 am IMF investigates chief for abuse of power in affairWASHINGTON (Reuters) - The International Monetary Fund said on Saturday it was investigating whether its chief Dominique Strauss-Kahn abused his power in an affair with a subordinate who has since left the global institution.Source: Reuters: Business News | 19 Oct 2008 | 3:23 am The dark side of lower pricesStock prices have plunged in recent weeks. So have oil prices.Source: Business and financial news - CNNMoney.com | 19 Oct 2008 | 3:14 am Wyoming: Drill baby, U.S.A.CNNMoney.com's special report puts you in rural Wyoming where a modern-day energy rush is changing life in this still-wild frontier. Read the stories, watch the videos and voice your opinion.Source: Business and financial news - CNNMoney.com | 19 Oct 2008 | 3:11 am Bush to host global summitRead full story for latest details.Source: Business and financial news - CNNMoney.com | 19 Oct 2008 | 3:06 am Ten Percent Of $700 Billion Bailout Could Go To Bonuses (GS)(C)(MS)
According to The London Observer, "Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism." The news for Morgan Stanley workers is even better. "At one point last week the Morgan Stanley $10.7bn pay pot for the year to date was greater than the entire stock market value of the business. In effect, staff, on receiving their remuneration, could club together and buy the bank." Have a nice day Douglas A. McIntyre Source: 24/7 Wall St. | 19 Oct 2008 | 2:26 am SEC head calls for transparency on credit default swapNEW YORK (Reuters) - SEC Chairman Christopher Cox has called on Congress to pass legislation that would make so-called credit default swaps more transparent, including requiring that dealers in over-the-counter swaps publicly report their trades and the trades' value.Source: Reuters: Business News | 19 Oct 2008 | 1:07 am SEC head calls for transparency on credit default swap (Reuters)
Source: Yahoo! News: Business | 19 Oct 2008 | 1:07 am People sex up when the chips are downForget jumping out windows and hiding cash under mattresses - the credit crunch is driving Kiwis into sex, drugs and even rock 'n' roll. Wendy Lee, director and owner of designer sex gear retail chain Dvice, says the company's...Source: New Zealand Herald - Business | 19 Oct 2008 | 1:00 am GM, Chrysler pushing for rapid deal: report (Reuters)
Source: Yahoo! News: Business | 19 Oct 2008 | 12:07 am GM, Chrysler pushing for rapid deal: reportDETROIT (Reuters) - U.S. automakers Chrysler LLC and General Motors Corp are pushing for a quick merger deal ahead of the U.S. presidential election as sales continue to plummet and they cannot gain access to credit, a Detroit newspaper reported on Saturday.Source: Reuters: Business News | 19 Oct 2008 | 12:07 am Sorry, but telling the truth makes grim readingBusiness journalists are frequently accused of making the economic crisis worse by focusing on the bad news. “The media are talking people into this,” frustrated businessmen say.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Office real estate still on the floorSHARES in companies that deal with commercial property have fallen by more than 40% during the past 12 months, but the worst may not be over if we examine what is happening in the underlying real-estate market.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Bank rescue won't stop the misery index risingEconomic numbers will never be the same again. A trillion here, a trillion there and soon you are talking about real money. The bank rescue pales everything else into insignificance, even if it has not yet calmed jittery markets.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Time to take stock and surviveAs governments around the world scramble to rescue economies awash with debt, the global finance crisis has concentrated people's attention on their personal liquidity. "It throws it in your face," Retirement Commissioner Diana...Source: New Zealand Herald - Business | 18 Oct 2008 | 11:00 pm Bernard Hickey : Day of reckoning nearThere was a lot of hope early last week that the global financial and banking system may have survived the worst of the credit crunch. A lot of official fingers were shoved in the dyke to hold back a torrent of collapses. The...Source: New Zealand Herald - Business | 18 Oct 2008 | 11:00 pm It’s not over in a flash, Gordon BrownHector Sants picked up the phone late on Friday, October 10, to make the first of a series of difficult calls. After a torrid day in the markets that saw shares in Britain’s banks mauled again, the chief executive of the Financial Services Authority (FSA) had been reviewing his sums.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Suppliers accuse Tesco of making ‘aggressive’ demandsTESCO is locked in a battle with suppliers this weekend after allegedly demanding one-off cash payments and keener terms to help fund its price war with rival Asda and discount supermarkets Lidl and Aldi.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Demerger on hold at Cable & WirelessCABLE & WIRELESS has postponed plans for a demerger until next year because of the turmoil in financial markets.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Knock-down price for nursing home operatorNURSING-HOMES operator Four Seasons is expected to be put up for sale in the coming weeks for half the £1.4 billion it was bought for only two years ago.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Lord Turner: FSA will not cap bonusesTHE Financial Services Authority (FSA) will resist calls to cap exorbitant City bonuses, according to its chairman, Lord Turner.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Prudential woos Gulf backers for $15bn AIG deal$PRUDENTIAL is in advanced talks with two strategic investors to take a 20% stake in the company and help mount a $15 billion ($£8.6 billion) bid for the Asian business of AIG, the insurance giant bailed out by the American taxpayer.Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Swiss Re join CVC bid for Direct LineTHE private-equity giant CVC has teamed up with Swiss Re, the world’s largest reinsurance group, to make a bid for the insurance arm of Royal Bank of Scotland (RBS).Source: Latest Business News from Times Online | 18 Oct 2008 | 11:00 pm Wal-Mart pushes into Chinese boondocksCHINA - Maoming, Wuhu and Loudi. They're Chinese cities so far in the boonies that Lonely Planet doesn't even bother to mention them in its popular travel guide. But Wal-Mart has found them. The American mega-retailer...Source: New Zealand Herald - Business | 18 Oct 2008 | 10:39 pm Probe of Lehman collapse escalated: reportNEW YORK (Reuters) - Prosecutors have stepped up the investigation into the collapse of Lehman Brothers, with at least a dozen subpoenas being issued including one to the investment bank's chief executive, Richard Fuld, The New York Times reported on Saturday.Source: Reuters: Business News | 18 Oct 2008 | 9:36 pm Probe of Lehman collapse escalated: report (Reuters)
Source: Yahoo! News: Business | 18 Oct 2008 | 9:36 pm NewsWatch: It's tough being a hedge fund managerTo say that Andrew Lahde "hates" the hedge fund business would be an understatement. He’s shutting down his small California hedge fund, Lahde Capital, and vows never to manage money for other people again. The fund is notable for having returned 866 percent betting against the subprime collapse.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 9:00 pm Scandal snares monetary fund chiefRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Oct 2008 | 8:04 pm GM-Chrysler merger talks advanceRead full story for latest details.Source: Business and financial news - CNNMoney.com | 18 Oct 2008 | 5:44 pm Petrobras reaches record oil production in SeptemberBrazil’s state-run oil giant Petroleo Brasileiro SA reaches record oil production in September, the company says late Friday.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 5:31 pm Harvesting profits from wineDespite the global finance crisis, one of the world's top experts in wine investment says premium wine is a lucrative alternative investing option - and quality New Zealand wines offer good buying opportunities. Andrew Caillard,...Source: New Zealand Herald - Business | 18 Oct 2008 | 4:00 pm Martin Hawes : Saving money off your mortgageMortgage interest rates are going to fall. It is true banks take about a third of their funding from institutions overseas and this is getting more expensive. But a falling official cash rate should ensure your mortgage will be...Source: New Zealand Herald - Business | 18 Oct 2008 | 4:00 pm NewsWatch: It's tough being a hedge fund managerTo say that Andrew Lahde "hates" the hedge fund business would be an understatement. He’s shutting down his small California hedge fund, Lahde Capital, and vows never to manage money for other people again. The fund is notable for having returned 866 percent betting against the subprime collapse.Source: MarketWatch.com - Top Stories | 18 Oct 2008 | 4:00 pm Top tips: Ensuring your trademark is distinctiveElena Szentivanyi, a patent attorney with Henry Hughes, advises on ensuring your trademark is distinctive. What are trademarks and why are they important? Your trademark is your brand. It's the way people remember you - think...Source: New Zealand Herald - Business | 18 Oct 2008 | 4:00 pm IMF to investigate its directorThe International Monetary Fund investigates whether its director abused his power in an alleged relationship with a subordinate.Source: BBC News | Business | World Edition | 18 Oct 2008 | 3:26 pm When Will The Rest Of Ford's (F) Board Leave?
Ford (F) may have some trouble with these rules and regulations. Yesterday, two of its most prominent board members left: John R.H. Bond and Jorma Ollila. Bond is chairman of Vodafone (VOD). Ollila is chairman of Nokia (NOK) and Royal Dutch Shell (RDS). Neither is exactly at retirement age. Their departure follows that of the Ford CFO by less than a week. Ford still has eleven board members, but, the company is in such deep trouble, others may leave. Some analysts think that Ford could run low on money next year. Bond and Ollila said they were worried that they could not spend adequate time working with Ford while it muddles its way though the global automotive crisis. Each said he would need to spend more time in Europe which is moving into a deep recession. Some of Ford's other board members may have to leave. Ford does not have a real public company board. The Ford family control the vote, so it may not need a full complement of directors. Here are some of the other people on Ford's board and why they may leave: Stephen Butler is the retired head of KPMG. The accounting firm may need him back because it will be required to spend additional time looking at the complex year-end write-offs at clients in the banking and brokerage industries. Kimberly Casiano is president of Casiano Communications, a publishing and direct marketing firm in Puerto Rico. She may resign because she has absolutely no qualifications to be on the board of a multi-national car company, or any other large corporation for that matter. Irvine Hockaday is the retired CEO of Hallmark Cards. A recession could do subtantial damage to the greeting card business and he might be called upon to take back his old job to steer the company through a very difficult period. Richard Manoogian is chairman of Masco (MAS) a home improvement and contruction materials company. Since the housing market is in its worst slump since The Great Depression, his firm will require all of management's time to save the company. Ellen Marram runs the Barnegat Group. She has worked at Seagram and Tropicana. Since Barnegat is an obscure business advisory firm, she may not be renominated due to lack of credentials. Homer Neal is a professor of Physics at The University of Michigan. In order to get the grants to hold onto his large salary at U of M will require much more of his time during a recession. Gerald Shaheen is the head of Caterpillar (CAT). The global downturn in heavy construction will almost certainly undercut his company's earnings and keeping Cat on track will require more and more of his time. John Thortan is a former senior executive at Goldman Sachs (GS) and is now a professor at Tsinghua University in Beijing. Since China is replacing the US as the leading global economic power, he may simply decide that spending time working in the declining American business environment is not worth his effort. That will leave CEO Alan Mulally, William Clay Ford, Jr. and Edsel Ford II to go down with the ship. Douglas A. McIntyre Source: 24/7 Wall St. | 18 Oct 2008 | 1:33 pm
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