From the self-congratulatory New York Times, we have Andrew Ross Serkin talking about: Beat the Clock (and Get a Double Bonus).
EVER wonder why there is a torrent of multibillion takeovers and mergers at the end of every year?
Nah. Here’s a dirty little secret: The urge to merge may be influenced by bonuses for all involved in the deal, especially the bankers. Corporate America’s biggest cheerleaders and boosters need to get paid.
Well, duh!
In case you didn't get it, I'll say it again: DUH!!!
DUHHHHHHHHHHHHH!
Honeypie, we live in a capitalist society, so it's every person for themselves.
The bankers only care about their bonus because that's the way things are set up. If you want them to actually care about the companies involved, there should be some incentive involved. No incentive, no reason to play nice.
In a bad merger, everyone makes out like bandits. The CEO, the board, the bankers. Naturally, someone must get screwed. Typically, it's the shareholders (although on occasion, it can be the bondholders too.)
Actually, the beauty of modern finance is that you can decide what percentage you want to screw the shareholders vis a vis the bondholders.
Ain't that just peachy?!?
Wow! these journalists are both naive and clueless!
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