The New CEO Ram has everything but no to that matters most- “The Information”.
The markets shall face the "test of the depth" to face the selling pressure incase it unwarranted. The stock markets across the globe live in a hostile situation where “The analyst gives wrong calls, the auditors certify any thing for a fee, the promoters publish cooked results and deviated misinformation’s, the fund houses buy with vision of “associations developed” in the nights but the poor retail investor invests the hard earnings for a lifeline of future. At the end of the day the retail investor looses every thing for a toss.
Thursday, January 08, 2009
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Highly learned man he is Mr Raju maight have got inspiration from the salad oil scandal.
Just see how easy it is to fool American Express leave alone poor speculators of Godavari districts.
Salad oil scandal
From Wikipedia, the free encyclopedia
The Salad Oil Scandal, also referred to as the "Soybean Scandal," was a major corporate scandal in 1963 that ultimately caused over $150 million (~$1.1 billion in 2008 dollars[1]) in losses to corporations including American Express, Bank of America and Bank Leumi, as well as many international trading companies. The scandal's ability to push otherwise cautious and conservative lenders into increasingly risky practices has prompted some comparisons to recent financial crises including the 2007-2008 subprime mortgage financial crisis.[1]
[edit] Description
The scandal involved the company Allied Crude Vegetable Oil in New Jersey, led by Tino De Angelis, which discovered that it could obtain loans based upon the inventory of its salad oil.[2]
Ships apparently full of salad oil would arrive at the docks, and inspectors would confirm that the ships were indeed full of oil, allowing the company to obtain millions in loans. In reality, the ships were mostly filled with water, with a only a few feet of salad oil on top. Since the oil floated on top of the water, it appeared to inspectors that these ships were loaded with oil. The company even transferred oil between different tanks while entertaining the inspectors at lunch.[3]
Once the scandal was exposed, American Express was one of the biggest casualties. Its stock dropped more than 50% as a result of the scandal, which cost the company nearly $58 million. Famed investor Warren Buffett took advantage of American Express' bad fortune by investing 40%[4] of his partnership's assets in the pummeled company in the 1960's, reaping a huge windfall as the company recovered.[5] Tino De Angelis was convicted of fraud and conspiracy charges in connection with the scandal and served seven years in prison, gaining his release in 1972.[6]
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