IBM S&T exec Robert Moffat arrested for conspiracy as part of an
insider trading ring:
from saturday's WSJ: "... the transcript also showed the two
discussing Mr.Moffat, the IBM executive. "Put him in some company
where we can trade well" Mr. Rajaratnam was said to tell Ms. Chiesi on
a recorded telephone call in Sept, 2008. Ms. Chiesi replied,
according to the filings: "I know, I know. I'm thinking that too. Or
just keep him at IBM, you know, because this guy is giving me more
information... I'd like to keep him at IBM right now because that's a
very powerful place for him. For us, too. Mr. Moffat's lawyer said
his client was "shocked" by the charges. ... IBM declined to comment.
IBM's 3Q financial results report profits up 14% and revenue down 6%.
A valid interpretation of these numbers is that IBM mgmt is slashing
R&D and customer service to maximize short term profits. Which,
coincidentally, is what Mr. Rajaratnam wanted to happen. (
Anecdotally, I can report that IBM is a difficult company to be a
customer of. IBM support cant figure out how to update the firmware
on my JS-12 blade. I am 2 weeks into trying to order an AIX license
and SWMA for the blade. No one I have talked to in IBM knows how to
get that done. My BP is working on it. So far he is 7 days into the
process, no quote yet. )
I vote that the IBM BOD resign the CEO. The short term profit culture
at IBM has attracted criminals to the highest reaches of the company.
Much better, for many reasons including long term profits, to focus
the company on technology, training and customer service.
As an Amazon Associate we earn from qualifying purchases.