"It was looting, and it is high time the media starts describing it in those terms."

"Why are CEOs allowed to keep bonuses based on profits that were ephemeral, false or even fraudulent?...Either investors should be able to pursue recovery via litigation, or the SEC should go after the ill-gotten cash. Either way, Bonuses based on profits that were not real are not bonuses - they are the proceeds from theft, and as crime, should be disgorged." (Ritholtz)

"Our theoretical analysis shows that an economic underground can come to life if firms have an incentive to go broke for profit at society's expense (to loot) instead of to go for broke (to gamble on success). Bankruptcy for profit will occur if poor accounting, lax regulation, or low penalties for abuse give owners an incentive to pay themselves more than their firms are worth and then default on their debt obligations. Bankruptcy for profit occurs most commonly when a government guarantees a firm's debt obligations." (Brookings in 1993, via NakedCapitalism)

http://www.ritholtz.com/blog/2008/12/clawing-back-at-exec-comp-part-ii/
http://www.nakedcapitalism.com/2008/12/new-york-times-story-pulls-punches-on.html
http://www.nytimes.com/2008/12/18/business/18pay.html?ref=us&pagewanted=all

A Christmas Card from the Stock Market