Tuesday, May 16, 2006
The Dell Defense
What struck me today as amusing is that another famous business leader is using the same excuse as Super Dell. Kenneth Lay of Enron fame recently testified that the energy giant was financially sound until just weeks before it collapsed.
“At times abandoning his legendary folksy manner for a sharper tone, Lay told jurors there had been "a real conspiracy" against Enron. He asserted that one newspaper in particular, The Wall Street Journal, "was on a witch hunt" aimed at the company and its onetime chief financial officer, Andrew S. Fastow. While also blaming Fastow, who has pled guilty to fraud and testified for the government, Lay zeroed in on articles the newspaper published in the fall of 2001 that he said "kicked off a run on the bank" that doomed the company.” Msn.com
What was more telling was this section… Basically calling the defense of blaming of the media for the downfall of a company genius.
“Lay didn't point out any errors in the Journal's coverage. But white-collar crime aficionados with no stake in the proceedings acknowledge the ingenuity of blaming the media in an era when journalists are widely seen in a negative light. "It's absolutely a novel defense," says Robert A. Mintz, a former federal prosecutor now with the firm of McCarter & English in Newark, N.J. But not unique. Making his case in the court of public opinion in the late 1980s, junk-bond financier Michael Milken claimed the Wall Street Establishment and media helped speed his downfall. He pled guilty to securities fraud and spent 22 months in prison.” Msn.com
This leaves me wondering who came up with this crazy idea? Super Dell? Or Kenneth Lay? Maybe Super Dell was a genius who has invented a new business excuse named the Dell Defense.
Links to this post: