US directors cash in £43bn worth of shares
Directors of US companies cashed in £43bn worth of shares before their companies collapsed.
According to business magazine Fortune, directors at Enron, Qwest and Global Crossing sold shares prior to the collapse of their companies. The biggest seller was Qwest director Phil Anschutz, who cashed in £1bn worth of shares three years ago.
Global Crossing’s chairman sold £330m while Lou Pai, director of Enron, collected £180m from his shares prior to the energy giant’s collapse.
The news comes as US company directors prepare to take an oath certifying their accounts are accurate. Companies will have until August 19 to make their pledge following the Sarbanes-Oxley Act passed last week.