Comeuppance as defined by dictionary.com
deserved reward or just deserts, usually unpleasant: He finally got his comeuppance for his misbehavior.
It is with great pleasure, I watch the ouster of Wachovia CEO Ken Thompson, the orchestrator of the ill fated Golden West Financial takeover or should I say take under. I say with great pleasure not that I wish personal ill to Mr. Thompson for I do not know him. He may be a wonderful parent, coach, parishioner and pet owner. The pleasure comes in relation to capital markets and their dire need to let monetary and reputational punishment and rewards lie with the risk takers not with the Innocent bystanders (re: taxpayers).
Regular readers may remember this post of mine on Friday July 20th where I said;
"As I have mentioned before, heads are gonna roll over at Wachovia regarding the buyout of that cancerous entity that was GoldenWest Financial. Just like the rocket scientists over at Merrill that talked Stan O'Neal into buying First Franklin. They don't get fired rather,they become part of the walking dead, guys/gals whose careers are dead ended. If I heard correctly Wachovia tripled their loan loss reserves, which I have no idea as to why they would when Greenspan, Bernanke, and Paulson have repeatedly told us sub prime is contained. Seems like a waste of productive capital to me that could be more prudently used buying inverted yield, Swedish Kronar denominated, collateralized Zimbabwean debt obligations. On margin of course! Imagine the fees !"
On April 14th in Credibility....or lack thereof, I went on to say;
"Okay, can we finally dispense with the phrase kitchen sink quarter regarding banking writedowns once and for all. Have we not abused the phrase to the point it is laughable when used in any context at all? Wachovia coming back to the capital markets again for more capital. Anyone want to bet the over, firms like Citi Merrill et al will all be back to the trough? Yeah sure, late innings of the credit crisis for sure. Does it look good on em'? You bet ! I am biased? Kinda, I was short GoldenWest Financial GDW way back prior to the buyout. I wasn't crushed but took a loss on what I believed was a very sound decision. My mistake was not transferring my short to Wachovia. As irritated as I was at the abject lunacy of Wachovia decision to buy GoldenWest at the time, I am comforted at what has transpired. There is justice in the world in what goes around comes around. As painful as my loss on the short of GoldenWest was, it was microscopic compared to the pain it is inflicting on its Carolina parent."
This is how capitalism should work. Make good decisions, profitable decisions, and you should be handsomely rewarded along with your partners and shareholders, everyone benefits! Bad decisions, lose money, you should be unemployed, financially set back, no parachutes when no one else gets one. A definite mental capital increasing day for this trader and his re-belief that there is justice in the universe and pain is meted out to it deserving recipients. Today is a good day in the annals of capitalism. Ann Rand and Adam Smith would be proud ! Now if only Mr. Thompson would walk away SIGNIFICANTLY impaired financially, but don't hold your breath !
Good Speculating to you all.