Ex-WorldCom chief borrowed a billion
Bernie Ebbers, the charismatic former chief executive of WorldCom, borrowed more than $1bn (£642m) against his stock then got the company to bail him out after its collapse.
Link: Read our WorldCom special report
The revelations come from a report authored by Richard Thornburgh who was appointed by the bankruptcy court to investigate possible fraud and mismanagement at the telecoms group, currently operating under Chapter 11 bankruptcy protection.
The report says that Ebbers monumental bank loans put him under huge pressure to maintain the WorldCom stock price. The report, although only giving preliminary findings, offers an insight into WorldCom.
The Financial Times claims the report paints a picture of Ebbers as ‘the domineering head of a company characterised by incessant dealmaking, lax financial controls and an obsession with managing and meeting Wall Street expectations.’
The report also calls into question the relationship between WorldCom and analyst Jack Grubman saying, ‘Mr Grubman’s behaviour seems to have departed from the role of an independent securities analyst.’