Wall Street Manna

An irreverent look at Wall Street

Tuesday, February 17, 2009

The next Stanford scam!

Today the SEC raided the Stanford Group alleging an $8 billion dollar fraud.
http://www.bizjournals.com/baltimore/stories/2009/02/16/daily19.html

But we have another "Stanford" scheme, that has cost shareholders over $20 billion already, yet nobody talks about it!

This is the scheme orchestrated by Richard D. Fairbank, the CEO of Capital One, a graduate of Stanford University, and from Stanford's MBA program!

He's pulled in $63 million a year as CEO of Capital One; an institution that is bordering on insolvency.

In 2008, his 5 year compensation totaled $379 million.
http://www.forbes.com/lists/2008/12/lead_bestbosses08_Richard-D-Fairbank_8YTB.html

Last year he pulled in $17 million, even has his scheme was unraveling! Look at the egregious pay of his lieutenants also!
http://projects.washingtonpost.com/post200/2008/executive/4996/

Now we can say that the only thing that Richard Fairbank has in common with The Stanford Group, is the name of the school he attended, and the name of the latest $8 billion fraud.

Except that they both promised returns that weren't there!

And that Fairbank's scheme had the blessing of the TARP and the regulators, while the Stanford Group committed fraud that wasn't sanctioned!

Both had fictitious accounting; except Capital One, under Richard Fairbank, made "mistakes" that he calls "business judgement" while the Stanford Group used accounting hidden under the watchful eye of the islands!

And The Stanford Group preyed on the rich, while Fairbank preyed on the poor.

What's in your wallet?

Soon it will be a Capital One card, that nobody will pay!

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