Fascinating that a $750 million dollars makes Mr. Spitzer’s problems go away. As an industry we need to assure our clients and business partners that things cannot and will not be business as usual. This situation casts light on some seriuos isssues that hopefully have been resolved.
So Marsh escapes with nearly 1/2 billion left over. Not bad for a few years of sleaze. And the rest of us are tainted by Marsh’s greed. Still the Greenberg Triad survives and wallows in their ill-gotten wealth.
Spitzer allows them to buy their way out and he does not disrupt his campaign for Governor.
What do you expect? To actually see some reform come out of this. This was all about who carried the bigger stick and who could make whom bow first. It had nothing to do with what was right for the industry or who’s jobs were at stake. I give it 6 months and it will be back to business as usuall.
Apology? I thought those were for mistakes or accidents not intentional acts of greed, mendacity and client pain. Give the $1.2B back and just admit M&M was managed by jerks.
If top management was aware of the illegal contracts, why is Spitzer not offering them jail time and getting part of the $750 million from them personally? It seems stockholders are left holdoing the bag.
Mr Spitzer, I am trying to buy a new car…could there be collusion there also? Can you believe it, I never get the same price dealer to dealer? How come you haven’t announced a plan of attack there?
The stockholders benefited from the arangements and are now punished by lost earnings. Management has lost their employment but probably not the gains they made from the arangements. Spitzer and the State of N.Y. win big in terms of publicity and $’s. The retail agent is left to explain to his/her customer what this all means and then justify to the state DOI all of their contingency contracts while the insurance companies see this as a way to further reduce agent compensation. Is this a great business of what?
The giant pays but a few coins from their pocket and the poor stock holders and employees who were made scape goats are really paying the price.
Amazing is why Mr. Spitzer doesn’t try going after M.R. Greenberg as well as his sons. After all is he really worth the 30+ million a year he gets or perhaps he is forcing the agent to push AIG just so he can keep himelf in his lavish lifestyle as well as his boys employed.
My feeling do go out to the employees that got fired for merly doing their jobs and the unsusspecting investor who took a stock broker’s advise and investied in M&M.
Can someone tell me where a majority of these 3k employees who lost their jobs came from in the company, i.e. low level, mid-level, etc. and are any of them having any luck finding new employment?
As always, many employees paid the price for upper management’s sins. I can assure you that we will not see any of the money. Greenberg and other execs leave with millions of dollars and we get the boot.
The employees that were let go were in various positions. Others have left because they know the ship is sinking…. Give it a couple of years and it will be business as usual.
How do I get on this gravy train??? Make a 50% profit on ill gotten gains, a slap on the wrist and go on about my business. I’ll apologize to anyone Spitzer wants, even in Macy’s window.
Now that he has advanced his political career and tarnished an industry, who is next…mortgage brokers for recommending a lender, real estate brokers for recommending a title company or home inspector, doctors for prescribing certain medications, mechanics for recommending a certain motor oil, bartenders for pushing a brand of liquor…Eliot, your grandstanding opportunities are endless.
By the way, who is accountable for the $600mm/$750mm, though I am sure none would ever find its way into a campaign fund!
Don’t ‘ya think the $$ should go back to the corps. whose insurance premiums were affected by Marsh’s dirty hands? Maybe Gillman should fork over a few bucks personally. How’d he skate out of this anyway?
It’s a sad commentary on how a few can destroy the lives of many. Even worse, the main culprits are not serving prison time. It’s no seceret that the upper tier of management knew what was going on and they walk with millions. American justice. I think not.
Of course MMC wants to settle the thing for $600 mil and no apology or admittance of guilt. Forget about the criminal charges or losing the corporate license. MMC doesn’t want to open a Pandora’s box for their ex-team members to hit them with any civil action, and any acceptance of blame, guilt etc would only improve the plaintiff’s case. Even those still at MMC with any money in the corporate stock program (Enron comparisons anyone?) would have a much better event horizon for recovery. Nice to know that Marsh could not have bought insurance for THIS exposure (D&O and E&O don’t cover malfeasance or corporate knowledge of wrongdoing, do they? Certainly not a Fidelity loss, though their Employee Goodwill has tumbled on the balance sheet through a loss of fidelity.)
O for the days of our fathers and mothers when corporations actually gave a darn about the workforce. Paternalism in Memorio Pace Requiem. Or something. Get together and get them for what they’re worth.
Spitzer keeps deliberately lumping the criminal price-fixing activities and the MSA’s in the same press-release bucket as if they are the same – the former is illegal and obviously disgusting as well as financially suicidal; the latter is common practice and legal in 50 states. That distinction, however, doesn’t play well to the public whom he wants to woo in the next gubernatorial. And a public apology? What’s next – a scarlet “A” on our business suits (A is for avarice?) As an alleged champion of truth and transparency, Spitzer should make the difference between the two clear and cop to the fact that his personal distaste for MSA’s and obvious quarrels with the Greenbergs does not trump existing law. I’m all for the responsible Marsh execs for coughing up the fine out of their private treasuries, but I wish someone would hold Spitzer accountable as well – the 3000+ (and growing) Marsh employees are only the first casualties in this publicity war.
The part that still bothers me is the governments ability to walk in and say fire the guys on my list ,pay this amount or I will take you to criminal court ?Sounds more like mafia extortion than justice. Yes Marsh bows down pays 750 mil maybe an apology from who ? The people left who did nothing wrong while the ceo excersised 137 mil in options plus 37mil salary ? Who gets the money ? Not the employees done wrong ,not the stock holders , not even the companies supposedly done wrong . The state of new york gets it . That in my opinion is criminal by itself . I say any settlement reach should be disbursed equally to all parties done wrong .
This insurance business is full of non working sleezballs who take care of each other and pay themselves big bucks. The people that do all the work have always short changed.
I am not sure what this is about….but I worked for almost 6 years with Marsh – just got called in one day and got laid-off. Until this day I cannot find a job, I go on interviews just to find out everything went well – I have all the experience but did not get the job. One Interviewer actually asked me how come I did not get a job with my experience yet? Could it be because I worked for Marsh? I don\’t know!!!! why am I not getting a job, I never had a problem getting a job before – I have over 17 years of Insurance experience. Until this day I don\’t have a job and this is punishment for me and my family. We have lives and everything changed suddenly after Marsh laid me off. I need to know what do I get out of all this!
Fascinating that a $750 million dollars makes Mr. Spitzer’s problems go away. As an industry we need to assure our clients and business partners that things cannot and will not be business as usual. This situation casts light on some seriuos isssues that hopefully have been resolved.
So Marsh escapes with nearly 1/2 billion left over. Not bad for a few years of sleaze. And the rest of us are tainted by Marsh’s greed. Still the Greenberg Triad survives and wallows in their ill-gotten wealth.
Spitzer allows them to buy their way out and he does not disrupt his campaign for Governor.
What do you expect? To actually see some reform come out of this. This was all about who carried the bigger stick and who could make whom bow first. It had nothing to do with what was right for the industry or who’s jobs were at stake. I give it 6 months and it will be back to business as usuall.
Apology? I thought those were for mistakes or accidents not intentional acts of greed, mendacity and client pain. Give the $1.2B back and just admit M&M was managed by jerks.
Jim Howse
If top management was aware of the illegal contracts, why is Spitzer not offering them jail time and getting part of the $750 million from them personally? It seems stockholders are left holdoing the bag.
Marsh will probably take the other $600 million and give it to the 3,000 employees who lost their jobs. Or maybe just give it all to Jeff.
Mr Spitzer, I am trying to buy a new car…could there be collusion there also? Can you believe it, I never get the same price dealer to dealer? How come you haven’t announced a plan of attack there?
The stockholders benefited from the arangements and are now punished by lost earnings. Management has lost their employment but probably not the gains they made from the arangements. Spitzer and the State of N.Y. win big in terms of publicity and $’s. The retail agent is left to explain to his/her customer what this all means and then justify to the state DOI all of their contingency contracts while the insurance companies see this as a way to further reduce agent compensation. Is this a great business of what?
What! No slap on the wrist too?!?!?
Maybe that will come from the individual lawsuits.
goes to the Spitz’s election campaign fund
The giant pays but a few coins from their pocket and the poor stock holders and employees who were made scape goats are really paying the price.
Amazing is why Mr. Spitzer doesn’t try going after M.R. Greenberg as well as his sons. After all is he really worth the 30+ million a year he gets or perhaps he is forcing the agent to push AIG just so he can keep himelf in his lavish lifestyle as well as his boys employed.
My feeling do go out to the employees that got fired for merly doing their jobs and the unsusspecting investor who took a stock broker’s advise and investied in M&M.
A Friend of the Fallen
Is is bid-rigging or contingencies from the company that we are talking about. Each situation is completely different.What is the fine really for??
That would be $450 Million.
Can someone tell me where a majority of these 3k employees who lost their jobs came from in the company, i.e. low level, mid-level, etc. and are any of them having any luck finding new employment?
They are all going to become campaign volunteers for Spitzer.
No, I think they will become campaign VOLUNTEERS for Gov Pataki’s campaign!!!
As always, many employees paid the price for upper management’s sins. I can assure you that we will not see any of the money. Greenberg and other execs leave with millions of dollars and we get the boot.
The employees that were let go were in various positions. Others have left because they know the ship is sinking…. Give it a couple of years and it will be business as usual.
P.S. Most of us have not found jobs!!!!!
How do I get on this gravy train??? Make a 50% profit on ill gotten gains, a slap on the wrist and go on about my business. I’ll apologize to anyone Spitzer wants, even in Macy’s window.
Now that he has advanced his political career and tarnished an industry, who is next…mortgage brokers for recommending a lender, real estate brokers for recommending a title company or home inspector, doctors for prescribing certain medications, mechanics for recommending a certain motor oil, bartenders for pushing a brand of liquor…Eliot, your grandstanding opportunities are endless.
By the way, who is accountable for the $600mm/$750mm, though I am sure none would ever find its way into a campaign fund!
Guess if you have $750 mill you can stay out of jail. Both Greenbergs should be serving time and restitution from personal funds.
ž
Don’t ‘ya think the $$ should go back to the corps. whose insurance premiums were affected by Marsh’s dirty hands? Maybe Gillman should fork over a few bucks personally. How’d he skate out of this anyway?
It’s a sad commentary on how a few can destroy the lives of many. Even worse, the main culprits are not serving prison time. It’s no seceret that the upper tier of management knew what was going on and they walk with millions. American justice. I think not.
Of course MMC wants to settle the thing for $600 mil and no apology or admittance of guilt. Forget about the criminal charges or losing the corporate license. MMC doesn’t want to open a Pandora’s box for their ex-team members to hit them with any civil action, and any acceptance of blame, guilt etc would only improve the plaintiff’s case. Even those still at MMC with any money in the corporate stock program (Enron comparisons anyone?) would have a much better event horizon for recovery. Nice to know that Marsh could not have bought insurance for THIS exposure (D&O and E&O don’t cover malfeasance or corporate knowledge of wrongdoing, do they? Certainly not a Fidelity loss, though their Employee Goodwill has tumbled on the balance sheet through a loss of fidelity.)
O for the days of our fathers and mothers when corporations actually gave a darn about the workforce. Paternalism in Memorio Pace Requiem. Or something. Get together and get them for what they’re worth.
Looks like Spitzer can be bought just like any other *****.
Well for everybody it is best that this case is coming to an end. Especially for the employees and stockholders.
Insurance buyers have learnt and this will have a positive effect on how they see brokers. Transparency will be key.
Spitzer keeps deliberately lumping the criminal price-fixing activities and the MSA’s in the same press-release bucket as if they are the same – the former is illegal and obviously disgusting as well as financially suicidal; the latter is common practice and legal in 50 states. That distinction, however, doesn’t play well to the public whom he wants to woo in the next gubernatorial. And a public apology? What’s next – a scarlet “A” on our business suits (A is for avarice?) As an alleged champion of truth and transparency, Spitzer should make the difference between the two clear and cop to the fact that his personal distaste for MSA’s and obvious quarrels with the Greenbergs does not trump existing law. I’m all for the responsible Marsh execs for coughing up the fine out of their private treasuries, but I wish someone would hold Spitzer accountable as well – the 3000+ (and growing) Marsh employees are only the first casualties in this publicity war.
The part that still bothers me is the governments ability to walk in and say fire the guys on my list ,pay this amount or I will take you to criminal court ?Sounds more like mafia extortion than justice. Yes Marsh bows down pays 750 mil maybe an apology from who ? The people left who did nothing wrong while the ceo excersised 137 mil in options plus 37mil salary ? Who gets the money ? Not the employees done wrong ,not the stock holders , not even the companies supposedly done wrong . The state of new york gets it . That in my opinion is criminal by itself . I say any settlement reach should be disbursed equally to all parties done wrong .
This insurance business is full of non working sleezballs who take care of each other and pay themselves big bucks. The people that do all the work have always short changed.
It’s like that with all businesses. That’s why the people who do the work are called “Pee-ons.”
I am not sure what this is about….but I worked for almost 6 years with Marsh – just got called in one day and got laid-off. Until this day I cannot find a job, I go on interviews just to find out everything went well – I have all the experience but did not get the job. One Interviewer actually asked me how come I did not get a job with my experience yet? Could it be because I worked for Marsh? I don\’t know!!!! why am I not getting a job, I never had a problem getting a job before – I have over 17 years of Insurance experience. Until this day I don\’t have a job and this is punishment for me and my family. We have lives and everything changed suddenly after Marsh laid me off. I need to know what do I get out of all this!
Confused