Global Crossing Ltd. set up a loan-guarantee plan to help shield executives who were facing personal margin calls, people familiar with the matter said. The plan, started in 2001 as the Bermuda-based fiber-optic company's shares began declining, was used by two executives, these people say. The plan was designed to prevent the executives from selling company stock to pay back loans made against the value of the shares, they say. It is unclear how much the company guaranteed in total, how many executives were eligible for the plan or which ones tapped it.
If executives had to sell their stock, "that was very bad for the company," says a person familiar with the plan. Low-interest loans and loan guarantees to executives have drawn criticism from some investors and members of Congress, concerned that companies are putting capital at risk for the personal benefit of their executives. WorldCom Inc., for example, extended $341 million in loans to founder and Chief Executive Bernard Ebbers so that he wouldn't have to sell some of his WorldCom stock to pay debts he incurred while buying the stock. The company's low-interest loan saved Mr. Ebbers millions in annual interest by borrowing from the company.
Global Crossing, which filed for bankruptcy protection under Chapter 11 of the federal Bankruptcy Code in January, is under investigation by the Securities and Exchange Commission and the Justice Department, which are looking into whether the company used "swaps" of fiber-optic capacity with other telecommunications companies to inflate its revenue.
Contemptible police tactics - Cops raid the home of a licensed medical marijuana provider in Washington, handcuff the fourteen year old son and put a gun to his head, and search the nineteen year old daughter and take the contents of her mickey-mouse wallet.
How To Survive Traffic Stops in America, Submit, Instantly! - What the cops want is immediate obedience and submission. Many cops are ex-military and view the civilian motorists of America about like they viewed the hapless peasants of Iraq and Afghanistan, that is, with contempt, not as fellow citizens deserving of civility and respect. It is a possibly lethal mistake to do anything other than submit, instantly and obey! Or be ready to shoot first. But aim high.