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Don't Blame Grubman
from the blame-those-who-listened-to-him dept
Last week we posted the news that Jack Grubman had been canned (though, with a $32 million severance package, which should ease the pain a bit). Business 2.0 has an interesting opinion piece saying that the blame shouldn't be placed on Grubman. While he was overpaid, compromised, and wrong, none of what he did was a secret - and all of it was done with the approval of his company. Those who listened to his comments about the telecom industry should have known he was biased, and that he could be wrong. According to the article, the blame belongs on those who listened uncritically.
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Yes and no
Jack Grubman provided information to his brokerage clients and advice to his corporate clients. Turns out it wasn't discerning information and it was bad advice. But as he fades from the scene -- a few months from now it'll be "Jack Who?" -- investors should remember that it is they who uncritically and cynically heeded his calls.
I do agree with this statement, however, the 'they let me do it, so I thought it was right' argument doesn't hold a lot of weight. As has been pointed out many times here, it's not just one person or group's fault - everyone messed up, to put it bluntly. Mr. Grubman just did it in a very public way, and when you do that, you have to expect to be blamed, especially by those who shared in the folly.
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