Nation Of Change has the story Hostess Blames Union for Bankruptcy after Tripling CEO’s Pay.
But while headlines have been quick to blame unions for the downfall of the company there’s actually more to the story: While the company was filing for bankruptcy, for the second time, earlier this year, it actually tripled its CEO’s pay, and increased other executives’ compensation by as much as 80 percent.
At the time, creditors warned that the decision signaled an attempt to “sidestep” bankruptcy rules, potentially as a means for trying to keep the executive at a failing company.
The vulture capitalists that took over Hostess must have been reading Mitt Romney’s how to book on being a vulture capitalist. He used a similar ploy for executives of a firm he took over in order to keep the money out of the hands of the FDIC. After admitting that they had been snookered, the FDIC had to agree to calling it even after accepting 30 cents on the dollar from Romney’s company for one of the banks the FDIC was rescuing.
If you and I hid funds from the bankruptcy court, we would be in jail without passing go and without collecting $200. Even though corporations are people, it seems that you cannot put them in jail when they do the same thing other people do to get themselves jailed.
Now that I have been defriended on Facebook by my own relatives, I guess it was time to get off Israel’s case and bust somebody else’s myths.