Kidder Corporation Case Solution

821 Words 4 Pages
Register to read the introduction… Jospeh Jett was head of the bond department and was found guilty for the $350 million of false profit that Kidder Peabody had reported. His strategy that use strip bond that will be analyzed later allowed him to show profit that actually were huge losses and moreover let him gain a bonus of about $9million.
Finally GE in October 1994 announced GE Capital was to sell Kidder Peabody to Paine Webber, another investment bank. The sale included the parts of Kidder that Paine Webber wished to purchase. GE Capital also transferred $580 million in liquid securities to Paine Webber, part of Kidder’s inventory. In return GE Capital received shares in Paine Webber worth $670 million. Thus GE received a net of $90 million for a firm that it had purchased for $600 million in 1986, though GE also obtained a 25% stake in Paine

Related Documents