Tuesday, October 11, 2005

The Rich Get Richer

NewsWEAK puts out an article that makes sense. I'm still in shock ... both from that and the facts divulged.

It seems that Northwest Airlines chairman Gary Wilson legally had access to United's pension-fund numbers. This is information that an investor might find useful, especially when a company is filing bankrupcy.

Wilson is a frequent seller, unloading more than 85 percent of his Northwest stock this year as the airline spiraled toward bankruptcy.

No doubt that he has earned a nice salary over the years. It's hard to say since even Forbes has his compensation listed at "n/a".

The Wall Street Journal reported June 13 that, according to Securities and Exchange Commission filings, Wilson cut his stake to 1.75 million shares from 4.34 million between March 31 and the first week in June.

Bloomberg shows it being slightly different numbers, but the same results ...

Last month, Gary Wilson, Northwest's chairman, disclosed in SEC filings that he had sold 2.47 million shares, or 59 percent of his stake. In his latest filing, dated July 14, Wilson reported selling another 50,000 shares, leaving him with a little more than 1 million shares.

All in total we are looking at about 21.5 million dollars.

Al Checchi, a former co-chairman who worked with Wilson to acquire Northwest in 1989, sold $26.4 million worth of Northwest stock between January and June, according to the Minneapolis Star Tribune.

All this is in disregard to the negative effect created in the stock value thus expediting the need for the company to file bankrupcy.

At the same time the corporate powers are cleaning up in the market and destroying their own company with information only they have, they are gaining from their employees making sacrifices. Massive job loss, and pay cuts across the board.

NewsWEAK also points out the other side of the story in relation to the widow of a pilot who was lost in the 9-11 attacks. Yet another victim of this legal 'insider trading' who is stuck with nothing ... twice.

This widow loses, the non-corporate employees lose jobs, others lose some pay ...

and mr. wilson takes an additional 21.5 million to the bank ... because of what he knew.

The rich get richer ... on the working stiffs backs.

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