SEC charges four more ex-Nortel officers in fraud

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officer and director bars, FIN 48

ODB, good one. A little known accounting change called FIN 48, requires that listed companies report the amount of money set aside for questionable tax positions. The problem here is out of country investors who put pressure on executives to take every tax break conceivable. These investors will actually threaten to sue the executives for breach of fiduciary duty unless they direct their accountants to take questionable tax positions.

Hence we have this sad situation where the executives of the transnational business may personally want to support the community that is their home for employees and customers by paying a fair business tax, but do not. The end result is bridges that collapse over the Mississippi, and education systems that do not meet employment needs, as well as wealth extraction that should be part of the economies where the work is done and the product/service is sold.

While it is possible to understand how big transnational business executive grew to have hearts of darkness, and even feel pity for them, they can not be returned to polite society. The officer and director bars are absolute necessities. They must also extend to charities - in particular the Bill and Melinda Gates Foundation. While it may not be possible to jail the wrong doers, it is certainly possible to keep them from continuing with their wrong ways at other organizations.

Posted by: mighetto   Posted on: 09/12/07 You are currently: a Guest | Members login | Terms of Use

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