Professor and Class, For this week’s Ethics Lesson, we were given the following scenario: Bernie Ebbers, CEO of World Com, was having “personal” financial troubles. He pledged some of his World Com stock as security for “personal” loans. As World Com’s stock prices were sinking, the bankers begin threatening to sell Ebbers portion of stock in order to secure their loans to him. To avoid this, Ebbers went to the board of directors at World Com, and asked them to loan him $400 Million dollars in corporation money/assets. He agreed to pay a 2.5% interest on the $400 Million they would loan him. He would use this to pay off the bankers. The board of directors at World Com agreed to loan Ebbers the money/assets. After given this scenario, we are asked to comment on the appropriateness of the decision that the board of directors made to loan Ebbers the money/assets. The following are my view points on the scenario.
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This note was uploaded on 12/08/2009 for the course AC 116 AC 116 taught by Professor Unknown during the Spring '09 term at Kaplan University.