Summary
Implications: 1.Record Losses are on the horizon without a sound basis for recovery. 2.A reduction in costs are mandated. The Cost of Labor is , now, considered to be fixed overhead ans IS NOT variable in nature. 3.Tokyo based Nomura make a Strategic mistake by the purchase of Lehman's Asian Assets. Management envisioned a coup by the purchase of a bankrupt firm. 4. The Consequence of poor decision-making. The question to be revealed: "Was management made AWARE of the variables and, possible, defaults or final outcome?" 5." The Worst Financial Crisis since the 1930's?" The salient question is that of Accountability and no one should be held as harmless!!
Analysis
Commentary:
1.An effortless manner of salvation: the payment of bonuses to all parties without forethought!
2.A HIGH retention rate of Lehman staf was a Major contributing factor
that couls have been avoided.
3.Under the circumstances - "Was it necessary to honor large retention bonuses for employees?" A question that should be asked of management in a proper Public forum and an answer presented!!!
4. Transaction costs being paid by the end of Financial Year. No quarantee should have been granted nor allowed to endorse poor decision-making!!!!
5. An innocent mistake or lack of proper planning? Perception has , now, become Reality!
