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Politics : High Tolerance Plasticity

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To: pls418 who wrote (12258)	2/6/2002 11:10:45 AM
From: Wowzer	Read Replies (2) of 23153

Got a few problems with WCOM, first would be the ethics of the WCOM's board. Bernie Ebbers borrowed heavily to buy WCOM stock, this loan was guaranteed by WCOM. So if everything goes to hell WCOM is stuck paying the debt of Ebbers which is total bullshit in my opinion. Who in their right mind would approve a deal like this? They already pay him 11 million a year, plus a ton of stock options you think that would be enough. To me that relationship should be criminal and does not provide a benefit to anybody other then a personal casino for Ebber. When I found out about this deal I dumped the shares that I held a few points ago. This type of deal hasn't been done once but twice for him! That said who the hell knows what type of accounting games they are playing. The other problem is that they rely heavily on debt to fund operations and the credit market is quickly drying up for WCOM (I guess they don't like lending money to fund Ebber's gambling habit either) which could cause a severe liquidity crunch or force them to pay significantly higher rates then they do now. And last but not least the market absolutely hates them. Given the above I think they have a 80% chance of filing BK soon.

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