Let's honor the men and women who's so full of themselves to see the obvious problem with subprime lending.


Warren J. Spector

Bear Stearns Ousts a Top Executive

The crisis in the credit markets finally reached the executive suite of Wall Street firms last week, and the victim was an unexpected one: Warren J. Spector, a co-president at Bear Stearns who some had thought could become the firm’s next chief executive.

Wednesday, the firm’s chief executive, James E. Cayne, called Mr. Spector into his spacious office on the sixth floor of the Bear Stearns building on Madison Avenue. Sitting behind his half-moon desk surrounded by computer terminals, Mr. Cayne told Mr. Spector that he wanted his resignation.

“I have to do this,” he said, according to people who were briefed on the conversation. “I can’t work with you anymore.”

The news is said to have blindsided Mr. Spector, 49, who had spent his entire 24-year career at Bear and who at one point had become the largest individual shareholder after Mr. Cayne, who is 73.

OUCH!


Kathleen Corbet

S&P; President Corbet Is Replaced

McGraw-Hill Cos. replaced the top executive at Standard & Poor's Corp. as criticism of the company's financial-information division mounts for its role in the unfolding subprime-mortgage crisis.

Kathleen Corbet, S&P;'s president, is leaving to pursue other opportunities, McGraw-Hill Cos. said yesterday, without elaborating. She will be succeeded by Deven Sharma, 51 years old, a senior McGraw-Hill executive who has been at S&P since late last year.

Good Call.


Herbert Suess

Head of subprime-hit German bank resigns

The head of German bank SachsenLB, which was stricken by losses linked to investments in US subprime home loans, has resigned, the bank said on Thursday.

Herbert Suess, 67, chose "according to his own wishes" to relinquish his responsibilities as chief executive on September 15, while another two directors have been sacked, the bank said.

Dang, look how pissed he is.

John Devaney

John ‘Big Idiot’ Devaney Sells Yacht as Subprime Losses Hit Hedge Fund

Mr. John Devaney is an idiot. But without idiots, the graveyards and barrooms would be empty; and then, what kind of a world would it be? Thank god for them all.

And so, we sympathise when an idiot runs into trouble…fully aware that we could be the next ones to do so!

Poor Mr. Devaney is selling his 142-foot yacht for $23.5 million. But that is not the source of the discomfort. There are only two happy moments in a boat-owner’s life, or so it is said - the day he buys his boat…and the day he sells it. So, may Mr. Devaney will probably enjoy getting rid of the thing.

The award for Subprime Genius is a tie between these two scholars. One for his call for millions of homeowners to use ARM and the other for his brilliant Ownership Society policy. Thanks to you, millions of happy home owners are getting kicked out their house that they have no business buying in the first place. Good job!