O'Neal Resignation Expected Today
The WSJ is reporting that O'Neal will announce his resignation today. While he is certainly the one taking the blame for mistakes that are undoubtedly not his, he is certainly not alone.
According to the journal,"[w]ith Mr. O'Neal's ouster, the global credit crunch -- triggered by a steep downturn in the value of subprime mortgages to the least-credit-worthy borrowers -- reaches deep into the executive suite. Damage across Wall Street has topped $27 billion, including $3.4 billion at UBS AG, a Swiss bank whose head of investment banking resigned a month ago. It has also cast further doubt on the future of Citigroup Inc. Chief Executive Charles Prince, whose co-head of investment banking resigned after mortgage-related losses."
The press has been reporting that Mr. O'Neal does not have a severance package in his agreement. That seems very unlikely, but we will have to wait to see how many millions an ousted CEO is worth.
