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: Wall Street Law BlogDID BEAR'S ACE GREENBERG PLAY WITH MONOPOLY MONEY and GET OUT OF JAIL FREE CARD?
By Brett D. Sherman
ACE GREENBERG, CHAIR OF THE BEAR STEARNS RISK COMMITTEE, HAD ALMOST NOTHING TO LOSE WHEN THE BEAR STEARNS EXPRESS CRASHED INTO THE SUBPRIME CRISIS.
Alan C. Greenberg, former Bear Steans CEO, sold huge volumes of stock at high prices during the housing bull market, leaving him with only about 15,000 shares when Bear collapsed.
Does this mean that "Ace" saw the writing on the wall?
Did Ace Greenberg have a fiduciary duty to disclose to shareholders why he was selling as much stock as he could quarterly and, sometimes, more often? Did the fact that he was highly respected on Wall Street and revered at Bear Stearns earn Ace Greenberg a free pass? Is Alan Greenberg responsible for material omissions? During Bear's final few years, how much did Ace really care about risk management?
Just asking...
Brett Sherman; The Sherman Law Firm
Full post as published by Wall Street Law Blog on June 07, 2009 (boomark / email).
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