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	<title>Comments on: B of A: Bond Holder&#8217;s Haircut Can Restore Solvency</title>
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	<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/</link>
	<description>Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media</description>
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		<title>By: The Financial Crisis &#8211; One Year Later &#171; Where the Arts Meet the Sciences</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-223285</link>
		<dc:creator>The Financial Crisis &#8211; One Year Later &#171; Where the Arts Meet the Sciences</dc:creator>
		<pubDate>Wed, 07 Oct 2009 04:24:48 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-223285</guid>
		<description>[...] article, this one a blog post from Chris Whalen at The Big Picture economics blog goes over some of the problems that came out of the wave of takeovers late last year [...]</description>
		<content:encoded><![CDATA[<p>[...] article, this one a blog post from Chris Whalen at The Big Picture economics blog goes over some of the problems that came out of the wave of takeovers late last year [...]</p>
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		<title>By: MichaelGat</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222854</link>
		<dc:creator>MichaelGat</dc:creator>
		<pubDate>Mon, 05 Oct 2009 23:20:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222854</guid>
		<description>&lt;i&gt;Employees don’t want to be micromanaged and treated condescendingly, but they are desperate to know, and deserve to know where they precisely stand on the org chart and in respect to immediate coworkers.&lt;/i&gt;

I&#039;m going to disagree with you slightly, because I find that the &quot;well defined org chart&quot; to often be a crutch, or in the worst cases, a smokescreen to cover for the fact that management often has no clue what it is doing.  One of the worst examples I can think of was a company I worked for some years ago where the founder/owner/CEO famously stated that &quot;Success is 1% inspiration and 99% last-minute changes.&quot;  This company, despite having only a few hundred employees, a very detailed org chart, and an employee manual over a hundred pages long, was constantly failing to get things done, because even at the upper management levels, they couldn&#039;t decide what to do and when they did decide they often kept it secret, apparently presuming that well-informed employees were somehow a threat.  An org chart won&#039;t help you if that&#039;s the case, as appears to be the situation at BAC.

I prefer Jon Carroll&#039;s definition of what works:

&lt;i&gt;Too many bosses try to be nice guys. A little common courtesy is always appreciated, but what people really want from their bosses is clarity. &quot;Just tell me the truth&quot; is the common cry of the confused employee. (Competence is also nice in a boss, but competence is really gravy. Clarity is the pearl beyond price.) 

I worked for Rupert Murdoch for four years. He was not a nice guy, even when he was trying to be. But he always told me the truth, even when it was not a truth I wanted to hear. It was a really easy gig, even when it was hard. I knew how I would be judged. 

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/04/27/DDG27BCCUL1.DTL&lt;/i&gt;

Note that he complains about a lot of the same things you do, but he reaches to the core of what&#039;s missing from some companies, and it&#039;s not org charts, formal heirarchies, dress codes or modes of address.

&quot;Clarity&quot; is the key.  You can have clarity even when the organization and relationships are complex.  I&#039;ve seen this in some of the better organizations I&#039;ve worked for over the years.  Intel and HP in their heydays practiced amazing clarity, despite flat and often fluid organization structures, and a great deal of informality in their internal operations.  Look at any great Silicon Valley company and you&#039;ll probably find much the same state of affairs.  It&#039;s what works when rapid change is the name of the game.

Throughout my work history with both of those companies and many others like them, I often had multiple projects and almost alwayshave had to work across organizational lines to get things done.My boss&#039;s job (and the job of the formal org chart) was to make sure my goals were clear and well aligned with the goals of the organization, and to provide an evaluation of my performance.  Beyond that, the heirarchy was largely irrelevant. What I needed to get done&lt;i&gt;wasn&#039;t&lt;/i&gt; always neatly defined by an org chart.  It &lt;i&gt;was&lt;/i&gt; always clear.

I&#039;ll take &quot;clarity of goals&quot; over &quot;neatly defined organization&quot; any day.  The former is the key.</description>
		<content:encoded><![CDATA[<p><i>Employees don’t want to be micromanaged and treated condescendingly, but they are desperate to know, and deserve to know where they precisely stand on the org chart and in respect to immediate coworkers.</i></p>
<p>I&#8217;m going to disagree with you slightly, because I find that the &#8220;well defined org chart&#8221; to often be a crutch, or in the worst cases, a smokescreen to cover for the fact that management often has no clue what it is doing.  One of the worst examples I can think of was a company I worked for some years ago where the founder/owner/CEO famously stated that &#8220;Success is 1% inspiration and 99% last-minute changes.&#8221;  This company, despite having only a few hundred employees, a very detailed org chart, and an employee manual over a hundred pages long, was constantly failing to get things done, because even at the upper management levels, they couldn&#8217;t decide what to do and when they did decide they often kept it secret, apparently presuming that well-informed employees were somehow a threat.  An org chart won&#8217;t help you if that&#8217;s the case, as appears to be the situation at BAC.</p>
<p>I prefer Jon Carroll&#8217;s definition of what works:</p>
<p><i>Too many bosses try to be nice guys. A little common courtesy is always appreciated, but what people really want from their bosses is clarity. &#8220;Just tell me the truth&#8221; is the common cry of the confused employee. (Competence is also nice in a boss, but competence is really gravy. Clarity is the pearl beyond price.) </p>
<p>I worked for Rupert Murdoch for four years. He was not a nice guy, even when he was trying to be. But he always told me the truth, even when it was not a truth I wanted to hear. It was a really easy gig, even when it was hard. I knew how I would be judged. </p>
<p><a href="http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/04/27/DDG27BCCUL1.DTL" rel="nofollow">http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/04/27/DDG27BCCUL1.DTL</a></i></p>
<p>Note that he complains about a lot of the same things you do, but he reaches to the core of what&#8217;s missing from some companies, and it&#8217;s not org charts, formal heirarchies, dress codes or modes of address.</p>
<p>&#8220;Clarity&#8221; is the key.  You can have clarity even when the organization and relationships are complex.  I&#8217;ve seen this in some of the better organizations I&#8217;ve worked for over the years.  Intel and HP in their heydays practiced amazing clarity, despite flat and often fluid organization structures, and a great deal of informality in their internal operations.  Look at any great Silicon Valley company and you&#8217;ll probably find much the same state of affairs.  It&#8217;s what works when rapid change is the name of the game.</p>
<p>Throughout my work history with both of those companies and many others like them, I often had multiple projects and almost alwayshave had to work across organizational lines to get things done.My boss&#8217;s job (and the job of the formal org chart) was to make sure my goals were clear and well aligned with the goals of the organization, and to provide an evaluation of my performance.  Beyond that, the heirarchy was largely irrelevant. What I needed to get done<i>wasn&#8217;t</i> always neatly defined by an org chart.  It <i>was</i> always clear.</p>
<p>I&#8217;ll take &#8220;clarity of goals&#8221; over &#8220;neatly defined organization&#8221; any day.  The former is the key.</p>
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		<title>By: Mark E Hoffer</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222825</link>
		<dc:creator>Mark E Hoffer</dc:creator>
		<pubDate>Mon, 05 Oct 2009 21:22:57 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222825</guid>
		<description>Chris, 

This is, another, excellent article.

~~
Bruce, 

re: Maersk, and &quot;Maersk abandons recovery hopes.&quot; I agree, that is an ominous Bell tolling..

additionally: &quot;Maersk Line is the core liner shipping activity of the A.P. Moller – Maersk Group, and the leading container shipping company in the world. The Maersk Line fleet comprises more than 500 vessels and a number of containers corresponding to more than 1,900,000 TEU (Twenty foot Equivalent Unit – a container 20 feet long). This ensures a reliable and comprehensive coverage worldwide. ..&quot;
&quot;...World trade would not be the same without the modern container, invented in 1956. Today, it carries more than 90 percent of all goods in world trade. Every commodity and type of goods can be loaded and carried in ‘the box’, as the container is often referred to. As a result, modern container shipping has changed the way we transport goods around the world and has played a key role in globalisation. 

*A single 20-foot container can hold about 48,000 bananas. So, in theory, a PS-vessel such as the EMMA MAERSK can transport approximately 528 million bananas in a single voyage - enough to give every person in Europe or North America a banana for breakfast. 
*If all Maersk Line containers were placed one after the other, they would reach about 19,000 km. This is more than the distance from Copenhagen, Denmark to Perth, Australia, via Cape Town, South Africa or almost half of the earth&#039;s circumference or almost three times the earth&#039;s radius. 
*If all the Maersk Line containers were stacked on top of each other they would reach approximately 2,500 kilometres high, equivalent to stacking 8,550 Eiffel Towers on top of each other. 
*At any one point in time, Maersk Line is transporting cargo worth approximately three percent of the world&#039;s GNP (world GNP in 2005: USD 36,356,240,000,000). 
*In 2007, Maersk Line made around 41,500 port calls - equivalent to approximately five port calls per hour or one call every 13 minutes.  
http://www.maerskline.com/link/?page=brochure&amp;path=/about_us/company_info</description>
		<content:encoded><![CDATA[<p>Chris, </p>
<p>This is, another, excellent article.</p>
<p>~~<br />
Bruce, </p>
<p>re: Maersk, and &#8220;Maersk abandons recovery hopes.&#8221; I agree, that is an ominous Bell tolling..</p>
<p>additionally: &#8220;Maersk Line is the core liner shipping activity of the A.P. Moller – Maersk Group, and the leading container shipping company in the world. The Maersk Line fleet comprises more than 500 vessels and a number of containers corresponding to more than 1,900,000 TEU (Twenty foot Equivalent Unit – a container 20 feet long). This ensures a reliable and comprehensive coverage worldwide. ..&#8221;<br />
&#8220;&#8230;World trade would not be the same without the modern container, invented in 1956. Today, it carries more than 90 percent of all goods in world trade. Every commodity and type of goods can be loaded and carried in ‘the box’, as the container is often referred to. As a result, modern container shipping has changed the way we transport goods around the world and has played a key role in globalisation. </p>
<p>*A single 20-foot container can hold about 48,000 bananas. So, in theory, a PS-vessel such as the EMMA MAERSK can transport approximately 528 million bananas in a single voyage &#8211; enough to give every person in Europe or North America a banana for breakfast.<br />
*If all Maersk Line containers were placed one after the other, they would reach about 19,000 km. This is more than the distance from Copenhagen, Denmark to Perth, Australia, via Cape Town, South Africa or almost half of the earth&#8217;s circumference or almost three times the earth&#8217;s radius.<br />
*If all the Maersk Line containers were stacked on top of each other they would reach approximately 2,500 kilometres high, equivalent to stacking 8,550 Eiffel Towers on top of each other.<br />
*At any one point in time, Maersk Line is transporting cargo worth approximately three percent of the world&#8217;s GNP (world GNP in 2005: USD 36,356,240,000,000).<br />
*In 2007, Maersk Line made around 41,500 port calls &#8211; equivalent to approximately five port calls per hour or one call every 13 minutes.<br />
<a href="http://www.maerskline.com/link/?page=brochure&#038;path=/about_us/company_info" rel="nofollow">http://www.maerskline.com/link/?page=brochure&#038;path=/about_us/company_info</a></p>
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		<title>By: ZackAttack</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222777</link>
		<dc:creator>ZackAttack</dc:creator>
		<pubDate>Mon, 05 Oct 2009 19:16:23 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222777</guid>
		<description>But, of course, the GS upgrade is good for a fast +100 on the Dow.</description>
		<content:encoded><![CDATA[<p>But, of course, the GS upgrade is good for a fast +100 on the Dow.</p>
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		<title>By: Onlooker from Troy</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222684</link>
		<dc:creator>Onlooker from Troy</dc:creator>
		<pubDate>Mon, 05 Oct 2009 15:33:47 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222684</guid>
		<description>….off topic, but this is MAERSK!….your 6′7″ offensive lineman……


Excellent metaphor Bruce.  The cracks are showing in the recovery thesis; large enough that even the folks with blinders on won&#039;t be able to ignore them for too much longer.</description>
		<content:encoded><![CDATA[<p>….off topic, but this is MAERSK!….your 6′7″ offensive lineman……</p>
<p>Excellent metaphor Bruce.  The cracks are showing in the recovery thesis; large enough that even the folks with blinders on won&#8217;t be able to ignore them for too much longer.</p>
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		<title>By: Bruce in Tn</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222656</link>
		<dc:creator>Bruce in Tn</dc:creator>
		<pubDate>Mon, 05 Oct 2009 14:02:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222656</guid>
		<description>http://www.lloydslist.com/ll/news/maersk-abandons-recovery-hopes-and-looks-to-slash-officer-jobs/20017704117.htm?src=rss#

Maersk abandons recovery hopes and looks to slash officer jobs
Richard Meade - Friday 2 October 2009

 
Maersk Line currently employ around 3,000 officers
MAERSK Line is seeking over 280 voluntary officer redundancies from the UK and Denmark in a bid to slash costs across the company. 
Confirming the industry’s worst fears, the box giant admitted that hopes of an early economic upturn have now been abandoned and frontline jobs are on the line. 


....off topic, but this is MAERSK!....your 6&#039;7&quot; offensive lineman......</description>
		<content:encoded><![CDATA[<p><a href="http://www.lloydslist.com/ll/news/maersk-abandons-recovery-hopes-and-looks-to-slash-officer-jobs/20017704117.htm?src=rss#" rel="nofollow">http://www.lloydslist.com/ll/news/maersk-abandons-recovery-hopes-and-looks-to-slash-officer-jobs/20017704117.htm?src=rss#</a></p>
<p>Maersk abandons recovery hopes and looks to slash officer jobs<br />
Richard Meade &#8211; Friday 2 October 2009</p>
<p>Maersk Line currently employ around 3,000 officers<br />
MAERSK Line is seeking over 280 voluntary officer redundancies from the UK and Denmark in a bid to slash costs across the company.<br />
Confirming the industry’s worst fears, the box giant admitted that hopes of an early economic upturn have now been abandoned and frontline jobs are on the line. </p>
<p>&#8230;.off topic, but this is MAERSK!&#8230;.your 6&#8217;7&#8243; offensive lineman&#8230;&#8230;</p>
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		<title>By: Michael Alan Miller &#187; BofA</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222651</link>
		<dc:creator>Michael Alan Miller &#187; BofA</dc:creator>
		<pubDate>Mon, 05 Oct 2009 13:48:44 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222651</guid>
		<description>[...] Posted by Chill on 05 Oct 2009 at 09:45 am &#124;  Barry is exactly right about Bank of America here. BAC, after all, is a combination of dozens of companies merged over the last 30 years that were [...]</description>
		<content:encoded><![CDATA[<p>[...] Posted by Chill on 05 Oct 2009 at 09:45 am |  Barry is exactly right about Bank of America here. BAC, after all, is a combination of dozens of companies merged over the last 30 years that were [...]</p>
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		<title>By: jc</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222647</link>
		<dc:creator>jc</dc:creator>
		<pubDate>Mon, 05 Oct 2009 13:40:34 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222647</guid>
		<description>When Vikram &amp; the WFC  CEO leave thats when we know some big shoes are ready to drop</description>
		<content:encoded><![CDATA[<p>When Vikram &amp; the WFC  CEO leave thats when we know some big shoes are ready to drop</p>
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		<title>By: jc</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222645</link>
		<dc:creator>jc</dc:creator>
		<pubDate>Mon, 05 Oct 2009 13:36:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222645</guid>
		<description>look at the pittance Lewis got compared to O&#039;Neal. TAKE THE MONEY &amp; RUN</description>
		<content:encoded><![CDATA[<p>look at the pittance Lewis got compared to O&#8217;Neal. TAKE THE MONEY &amp; RUN</p>
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		<title>By: jc</title>
		<link>http://www.ritholtz.com/blog/2009/10/boa-bond-holders-haircut-can-restore-solvency/comment-page-1/#comment-222644</link>
		<dc:creator>jc</dc:creator>
		<pubDate>Mon, 05 Oct 2009 13:35:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.ritholtz.com/blog/?p=40164#comment-222644</guid>
		<description>Right now the big banks seem to be rushing to pay off their US guarantees so they can resume paying their bonuses.At the same time they are holding off on foreclosures. They want to pay the bonuses before the foreclosurures wipe them out. I think they realize they&#039;ll definitely be wiped out and they just want to get their bonuses and severance pacjages first, thats the real reason why they&#039;re creating the shadow inventory, they have no solution to the problem aside from a massive US resue which will cost them their jobs and bonuses, they don&#039;t care about the banks survival thats a foregone conclusion they just want to take their money &amp; run. look at the pittance Wagoner got compared to Lewis!</description>
		<content:encoded><![CDATA[<p>Right now the big banks seem to be rushing to pay off their US guarantees so they can resume paying their bonuses.At the same time they are holding off on foreclosures. They want to pay the bonuses before the foreclosurures wipe them out. I think they realize they&#8217;ll definitely be wiped out and they just want to get their bonuses and severance pacjages first, thats the real reason why they&#8217;re creating the shadow inventory, they have no solution to the problem aside from a massive US resue which will cost them their jobs and bonuses, they don&#8217;t care about the banks survival thats a foregone conclusion they just want to take their money &amp; run. look at the pittance Wagoner got compared to Lewis!</p>
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