9/11 Options Part II

Barry Ritholtz lays down a challenge to me and Professors Ribstein and Bainbridge.
So Barry, but I won’t bite.
Let me briefly restate my argument. I am not an apologist for these executives. Nor am I saying that they’re “fine human beings.” I am, however, a critic of the unfair accusations made against them in Saturday’s WSJ. It was highly unprofessional journalism.
The article used stilted language and sloppy juxtapositions to create a sense that these were shadowy executives using illegal or unusual methods to profit off people’s misery. It wasn’t illegal. It wasn’t unusual, and some of them didn’t make money.
In fact, the article later goes into detail explaining just that, which in my opinion, makes the journalism even worse. They introduce the charge and back away from it. That’s like saying, “they say he’s a wife-beater, which I don’t believe.” Then don’t say it.
If you want to ban stock options, fine. If you want to call them greedy, fine. If you want to say that they’re lousy executives and don’t serve shareholders well, go right ahead. But it’s grossly unfair to imply that they profited off 9/11, or were uncaring to the suffering of the terrorist attacks.
(Do you want an example of war profiteering? How about…paying to avoid military service and then selling shoddy guns to the army. Just like J.P. Morgan.
About Richard Whitey, well…the less said the better. And Thomas Lamont, Ned’s great-grandfather btw, was rather a big fan of Mussolini. Not to mention, he drove Keynes nuts at the Paris Peace Conference of 1919.)
Actually, I do own both Home Depot (HD) and UnitedHealth (UNH), so perhaps I do meet Barry’s challenge. What’s more, I’ve defended both positions on this site, and suffered the consequences. My Buy List is free for all to see.
Were the actions of the executives slimy? Probably. Evil? No.
Update: Here’s Professor Ribstein’s response. Also, John Carney has a vote tally at DealBreaker.

Posted by on July 18th, 2006 at 1:57 pm


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