Tuesday, October 14, 2008

Another CEO blown out by margin

This time it is XL's Capital Chairman Brian O'hara:

HAMILTON, Bermuda, Oct 14, 2008 /PRNewswire-FirstCall via COMTEX/ -- XL Capital Ltd ("XL" or the "Company") (NYSE: XL) announced today that the Chairman of its Board of Directors, Brian M. O'Hara, involuntarily sold approximately 80% of his XL common shares on October 9th in order to meet a margin loan call.

Mr. O'Hara commented: "I regret that last Thursday I was forced to sell approximately 80% of my XL shares. I had pledged those shares as collateral to secure a personal loan used to fund purchases of XL shares in order to avoid the expiration of certain options. The forced sale was due to the precipitous drop in XL's share price last week. The sale in no way reflects a lack of confidence in XL's current and future prospects."

Last Thursday, the low on the stock was $3.45. Last Thursday, Goldman Sachs warned about specific headwinds in the insurance industry.

Another liquidation-unwide trade!

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