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A Board Complicit in MF Globals Bets, and its Demise

New York Times Original article ›

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The failure of the MF Global Board of Directors to question the huge bets on European sovereign bonds taken by Jon Corzine. This board had members with sophisticated knowledge of financial markets. Then why did it act passively, asks Davidoff. Boards have some of the same blinkers that the CEO has, and may have been led to believe that this was a good course of action. Failure of boards of directors in recent times include a long list- Lehman Brothers, GM, H-P, Toyota, most recently Olympus, and others. In some cases as with Corzine and the head of Lehman, one sees a headstrong executive with a history of success, in others as at GM and Toyota the Board is stacked with members selected by or favorable to voting with the CEO. And at H-P or Olympus, an inside group that runs things the way they see fit. Most boards of this type are highly insulated from outside opinion, and highly confirmed in the correctness of their own opinion even when the situation has dangerously deteriorated.

Board failures and lack of action to make much needed changes after this helped cause the economic crisis of 2008-09.

06/01/2009

Board failures at companies like Fannie Mae, Countrywide, WaMu, GM and others which led to huge losses for taxpayers, communities, and laid off employees.

Grouped Articles

Board Directors Disappoint

New York Times 05/11/2013

The 40-Year Club: America's Longest-Serving Directors

Wall Street Journal 07/16/2013

How Rick Wagoner Lost GM

BusinessWeek 06/01/2009

An Unfinished Chapter at Countrywide

New York Times 08/23/2014

G.M.’s Board Is Seen as Slow in Reacting to Safety Crisis

New York Times 09/07/2014

What Iceberg? Just Glide to the Next Boardroom

New York Times 12/27/2009

Corporate Boards of Directors and effective governance

01/09/2009

Grouped Articles

Board Directors Disappoint

New York Times 05/11/2013

H-P's One-Year Plan

Wall Street Journal 08/28/2011

The 40-Year Club: America's Longest-Serving Directors

Wall Street Journal 07/16/2013

The Big Number

Wall Street Journal 09/10/2013

India Faces an 'Enron Moment'

Wall Street Journal 01/09/2009

Founder Arrested, Board Out at Satyam

Wall Street Journal 01/10/2009

Failure of the Board of Directors to correct a company's course before it goes into bankruptcy- GM (General Motors) to MF Global

01/24/2008

Grouped Articles

The 40-Year Club: America's Longest-Serving Directors

Wall Street Journal 07/16/2013

The Big Number

Wall Street Journal 09/10/2013

India Faces an 'Enron Moment'

Wall Street Journal 01/09/2009

How Rick Wagoner Lost GM

BusinessWeek 06/01/2009

A Saga of Decline and Denial

Wall Street Journal 06/02/2009

G.M.’s Board Is Seen as Slow in Reacting to Safety Crisis

New York Times 09/07/2014

GM (General Motors) Management -pre-2010

03/04/2008

General Motors Management. Questions raised in the media. Is it too homogenous, too think alike. Are there different opinions and perspectives and ideas exisitng in middle and upper management and is diversity of opinion respected? Is the Board of Directors also too homogenous and think alike? And does it also bring different perspectives? Is there young blood in management and in the Board or is it like a place with tenure.

Grouped Articles

The 40-Year Club: America's Longest-Serving Directors

Wall Street Journal 07/16/2013

GM Fires Workers Over India Recall

Wall Street Journal 07/26/2013

G.M. Dismisses Executives as India Begins Investigating Recall of Vehicles

New York Times 07/26/2013

GM Shifts Executives Amid International Push

Wall Street Journal 08/02/2013

General Motors Names Mary Barra as CEO

Wall Street Journal 12/11/2013

How Rick Wagoner Lost GM

BusinessWeek 06/01/2009

The new Board at GM after the bankruptcy and under the leadership of Whitacre.

06/01/2009

An activist board at GM pushing for fast changes at GM.

Grouped Articles

The 40-Year Club: America's Longest-Serving Directors

Wall Street Journal 07/16/2013

How Rick Wagoner Lost GM

BusinessWeek 06/01/2009

G.M.’s Board Is Seen as Slow in Reacting to Safety Crisis

New York Times 09/07/2014

Angst Over GM's Activist Board

BusinessWeek 12/10/2009

The Battle Raging Inside GM

BusinessWeek 12/02/2009

GM CEO takes bold steps He topples hierarchy, voes to repay loans.

Detroit Free Press 01/11/2010

Toyota's Board of Directors, size, insularity and the cultural context

03/08/2011

Plans to change the board to have fewer directors- closer to 12 compared to 27 today- so that discussions can be carried on at the highest level and lead to speedy decisions. A similar change was made at Honda Motor.

Grouped Articles

The 40-Year Club: America's Longest-Serving Directors

Wall Street Journal 07/16/2013

Toyota Director Aims to Speed Up Decision Making

Wall Street Journal 07/23/2013

Microsoft Board Shows Little Taste for Bold Choice in CEO

Wall Street Journal 09/02/2013

Toyota Moves to Downsize Its Board

Wall Street Journal 03/08/2011

Toyota Unveils New Business Plan

Wall Street Journal 03/09/2011

Corporate Boards Should Add Diversity to the Mix

New York Times 03/09/2011

HP financial performance

05/17/2011

Grouped Articles

Tech's Rust Belt Takes Shape

Wall Street Journal 04/19/2013

H-P Has a Long, Hard Slog Ahead

Wall Street Journal 05/24/2013

Hewlett-Packard Shareholders: Are You Really Being Served?

Wall Street Journal 05/24/2013

Lenovo Takes PC Sales Crown From H-P as Market's Slump Worsens

Wall Street Journal 07/11/2013

H-P's Recovery Plan Slows

Wall Street Journal 08/22/2013

H-P's Sales Drop Again But Beat Expectations

Wall Street Journal 11/27/2013

HP's acquisitions and its investment bankers

10/07/2011

Grouped Articles

Behind the Woes at H.P. Bankers Lurk

New York Times 11/08/2011

A Board Complicit in MF Globals Bets, and its Demise

New York Times 11/09/2011

Hewlett-Packard to Cut About 30,000 Jobs

New York Times 05/17/2012

H-P Is Punished for Grim Outlook

Wall Street Journal 10/03/2012

Q&A With Autonomy Founder Mike Lynch on H-P Allegations

Wall Street Journal 11/20/2012

Autonomy Delivers Fresh Blow to London

Wall Street Journal 11/20/2012

GM (General Motors) before the bankruptcy and transition to post bankruptcy management.

02/13/2006

The situation at GM before the bankruptcy.

Grouped Articles

General Motors Names Mary Barra as CEO

Wall Street Journal 12/11/2013

For GE, GM and Citi, It's $7.06, $1.45, $1.03

Wall Street Journal 03/07/2009

Is General Motors Unraveling?

Wall Street Journal 04/08/2006

In Dark Hour at GM, CEO Sought A Public Endorsement by Board

Wall Street Journal 06/05/2006

GM Sheds 19,000 Jobs Through Buyout Program

Wall Street Journal 05/30/2008

G.M. Closing 4 Plants in Shift From Trucks Toward Cars

New York Times 06/04/2008

GM's (General Motors) efforts to change its culture under Whitacre and Akerson

06/02/2009

Grouped Articles

GM Fires Workers Over India Recall

Wall Street Journal 07/26/2013

G.M. Dismisses Executives as India Begins Investigating Recall of Vehicles

New York Times 07/26/2013

G.M. Names First Female Chief Executive

New York Times 12/10/2013

G.M. Names Mary Barra to Oversee Product Development

New York Times 01/20/2011

General Motors Names Mary Barra as CEO

Wall Street Journal 12/11/2013

New CEO for Revived GM

Wall Street Journal 08/12/2010

Changes in public perception of Detroit auto companies and fuel efficiency in the 2006- 2008 period.

02/28/2006

Public perception changed in this period. Columnists like Friedman said in the NYT that "GM is more dangerous to America's future" and acting like a "crack dealer." This as GM was offering buyers of large low fuel efficiency vehicles gas capped at $1/99 per gallon. Ford offered free gas upto $1000 with aprepaid Master charge debit card, enough for 6000 miles. Were the automakers lagging behind changing conditions and not adapting to changing public perception, by fighting higher fuel efficiency standards in Congress. link to Hyundai where its technology executive says Hyundai can meet higher standards with new technology and not even counting hybrids in the picture.

Grouped Articles

Makers Pack New Cars With Technology, but Younger Buyers Shrug

New York Times 01/26/2014

With Gas Prices Less of a Worry, Buyers Pass Hybrid Cars By

New York Times 05/14/2015

Detroit's No Good, Very Bad May

BusinessWeek 06/02/2006

Hyundai Aims for Efficiency Lead

Wall Street Journal 09/03/2008

Ford Is Hoping to Give the Once-Great Explorer a Second Life

New York Times 05/27/2010

The Durango Becomes a Civilized Utility Vehicle

Wall Street Journal 01/05/2011

Olympus management

10/21/2011

Grouped Articles

Olympus Corp. of the Americas to Pay $646 Million to Settle Kickback Charges

Wall Street Journal 03/02/2016

Olympus Is Under Pressure

Wall Street Journal 10/21/2011

Olympus admits to cover-up on decades of losses - The Washington Post

Washington Post 11/08/2011

Olympus Hid Investing Losses in Big Merger Payouts

New York Times 11/07/2011

Olympus Admits to Hiding Losses

Wall Street Journal 11/08/2011

Olympus Targets Had Scant Histories

Wall Street Journal 11/01/2011

Lehman Brothers and the improper accounting that misled investors and led to its collapse.

03/18/2008

The use of Repo 105 transactions which concealed loans as sales of securities and moved them off the bank's balance sheet. About $50 billion was moved off the balance sheet in this way in 2007 and 2008. The practice started in 2001 and was accepted by its auditor Ernst & Young. The New York Attorney General is investigating Lehman and Ernst & Young.

Grouped Articles

Lessons from the Lehman Autopsy

BusinessWeek 03/24/2010

Lehman Channeled Risks Through ‘Alter Ego’ Firm

New York Times 04/12/2010

Fuld: SEC, Fed Knew All —Even If He Didn't

Wall Street Journal 04/20/2010

Inside the End of the U.S. Bid to Punish Lehmann Executives

New York Times 09/08/2013

Hedge Funds Are Among the Winners of the Lehman Spoils

Wall Street Journal 09/13/2013

From Lehman's Wreckage, New Lives

Wall Street Journal 09/12/2009

Bear Stearns collapse and takeover by JP Morgan

03/17/2008

The collapse of bear Stearns and the takeover by JP Morgan with the Fed' backing. On March 18, 2008 speculation about Lehman being next.

Grouped Articles

Inside the End of the U.S. Bid to Punish Lehmann Executives

New York Times 09/08/2013

Hedge Funds Are Among the Winners of the Lehman Spoils

Wall Street Journal 09/13/2013

Lehman Struggles To Shore Up Confidence

Wall Street Journal 09/11/2008

After a Financial Flood, Pipes Are Still Broken

New York Times 09/14/2013

Record Pact Is on the Table, But J.P. Morgan Faces Fight

Wall Street Journal 10/21/2013

Considering the Fairness of JP Morgan's Deal

New York Times 10/21/2013

Management failure at Toyota in addressing quality and safety issues- the Recall period 2009-2011

01/29/2010

Toyota's own documents reveal that managers touted the $100 million savings in limiting the degree to which Toyota would address the quality and safety issues raised by unintended acceleration and failure in braking. Toyota had hired former National Highway Traffic and Safety officials and was able to limit what it had to do to address the problem. In the end the problems would cost billions of dollars in a massive recall effort and dent its image.

Grouped Articles

Toyoda Rues Excessive Profit Focus

Wall Street Journal 03/02/2010

Inside Toyota, Executives Trade Blame Over Debacle

Wall Street Journal 04/13/2010

Toyota Nears $1 Billion Deal to End Probe

Wall Street Journal 02/08/2014

Toyota to Resume Plant Building After Three-Year Hiatus

Wall Street Journal 04/04/2015

Toyota’s Top Executive Under Rising Pressure

New York Times 02/06/2010

Akio Toyoda - Toyota's plan to repair its public image

Washington Post 02/09/2010

Stalling and inaction by Toyota during the recall crisis.

02/01/2010

Grouped Articles

Toyota to delegate authority.

Detroit News 03/01/2010

Toyota chief's deep bow of apology awaited - MarketWatch

Unknown 02/05/2010

Toyota’s Top Executive Under Rising Pressure

New York Times 02/06/2010

Toyota’s Blind Spot

New York Times 02/06/2010

Lawsuit Over a Crash Adds to Toyota’s Difficulties

New York Times 02/05/2010

Toyota’s Slow Awakening to a Deadly Problem

New York Times 02/01/2010

The U.S. investigations into Toyota brake and acceleration failures.

02/05/2010

The controversy after the recalls.

Grouped Articles

Toyota and the Curse of Software

Wall Street Journal 02/05/2010

U.S. to Investigate Prius Brakes

Wall Street Journal 02/05/2010

Regulators Hired by Toyota Helped Halt Investigations (Update3)

BusinessWeek 02/12/2010

U.S. Intensifies Toyota Probe

Wall Street Journal 02/17/2010

U.S. Wants to Know When Toyota Knew of Problems

New York Times 02/17/2010

Toyota Woes Put Focus on Black Box

Wall Street Journal 02/16/2010

Toyota strategy in the pre-Akio Toyoda period.

05/12/2005

How Toyota strategy was shaped in the pre-Akio Toyoda period, under Watanabe and his team.

Grouped Articles

Toyoda Rues Excessive Profit Focus

Wall Street Journal 03/02/2010

Eiji Toyoda, Promoter of the Toyota Way and Engineer of Its Growth, Dies at 100

New York Times 09/17/2013

Why Toyota Won

Wall Street Journal 02/13/2006

Toyota Tacoma: A Rugged Winner

BusinessWeek 04/05/2006

How Slumping Market for SUVs Is Hurting Detroit's Bottom Line

Wall Street Journal 05/13/2005

For Toyota, a New Small Truck Carries Hopes for Topping GM

Wall Street Journal 05/12/2005

Toyota's new priorities and strategy under Akio Toyoda.

05/17/2006

The grandson of founder Kiichiro Toyoda takes charge after the global economic crisis of 2008-2009. Toyota enters a new period with different priorities.

Grouped Articles

Toyota Profit Surges

Wall Street Journal 05/08/2013

Toyoda Rues Excessive Profit Focus

Wall Street Journal 03/02/2010

Toyota Director Aims to Speed Up Decision Making

Wall Street Journal 07/23/2013

Toyota Scrambles to Catch Up in Brazil

Wall Street Journal 08/26/2013

In Rapid Turnaround, Toyota Is on Track to Post Record Earnings

New York Times 02/04/2014

Toyota Offers Tepid Outlook After Big Gains

Wall Street Journal 05/09/2014

Jon Corzine and MF Global's bankruptcy

11/04/2011

Grouped Articles

MF Global Customers WIll Recover All They Lost

New York Times 11/05/2013

In Corzine Comeback, Big Risks and Steep Fall

New York Times 11/04/2011

Corzine Out as Search for Funds Continues

New York Times 11/05/2011

Corzine Firm's Final Struggles

Wall Street Journal 11/05/2011

Our Reckless Meritocracy

New York Times 11/05/2011

Face-Off Over Shortfall

Wall Street Journal 11/08/2011


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