At The Financial Times: Vulture Capitalist Paul Singer defends his greed as ‘shareholder accountability’ ! Almost Marx scoffs

Headline: Do not let company founders hide from accountability

Sub-headline: Lyft’s dual class structure will prevent shareholders from having reasonable input

Recall Mr. Singer as the purchaser of Argentina’s bad debt? and the fact that Macri paid the ransom for re-admittance into the Free Market Club? as I recall 1.3 billion was the price tag! And less that a year and a half, with the peso in free fall, Macri applied and got an IMF bailout for his failing Austerity Lite: de Kirchner is waiting in the wings: the definition of ‘success’?
That bit of inconvenient ‘Economic History’ puts Mr. Singer’s plea for ‘shareholder accountability’ garnished with self-congratulation where? Examples here:

My firm, Elliott Management, frequently encounters technology companies where founders or longtime managers created remarkable innovations but then struggled with the challenges of maturing products, expanding organisations or slowing growth.

They often respond by aggressively seeking new sources of growth, paying richly for acquisitions that do not fit with their business models or allocating capital towards peripheral activities that fail to generate returns. Worse, such efforts often damage the core businesses that brought success in the first place.

Many companies are able to pull off these transitions without active shareholder involvement. But even at the most successful tech groups, allegations of privacy violations and other abuses have been most acute at companies such as Facebook and Google where dual-class structures are in place.

Those with the insight and daring to found a business deserve our respect. But once they sell the vast majority of the company to the public, they should not be allowed to run it forever without any shareholder input. Public ownership must mean public accountability.

My selection of quotations is self-serving, but not anymore self-serving than Mr. Singer’s whole argument,that Capitalism, and its companies need investors like himself to keep them ‘honest’!  Public Ownership and Public Accountability under the leadership of Vulture Capitalists like Singer is the sine qua non of  Capitalist Virtue.

Almost Marx

https://www.ft.com/content/b41a9896-4572-11e9-b83b-0c525dad548f

 

About stephenkmacksd

Rootless cosmopolitan,down at heels intellectual;would be writer. 'Polemic is a discourse of conflict, whose effect depends on a delicate balance between the requirements of truth and the enticements of anger, the duty to argue and the zest to inflame. Its rhetoric allows, even enforces, a certain figurative licence. Like epitaphs in Johnson’s adage, it is not under oath.' https://www.lrb.co.uk/v15/n20/perry-anderson/diary
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.