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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (15501)	6/19/2004 10:58:20 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 110194

tip, An independent board member can come from business, academia, government or the unemployment line. It doesn't really matter. What does matter is that an independent is elected by shareholders without mgt. recommendation or non-recommendation, has no employment or business ties to the company on whose board he serves and has the resources to hire outside experts to question management. Right now, "independent boards" consist of people buying from or selling to the company, cronies of mgt., and have no access to experts other than those provided by mgt. So, Ken Lay comes in and says, "these numbers are pristine." The directors say, we want a second opinion, so the "outside" auditor comes in and protects his big contract with the co. And if you don't believe him, Bob from accounting comes up to tell you he really did a thorough job. In other words, the opportunity for corruption is a huge temptation for those so prone.