Hector is going to pay the piper

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NXIL

Senior member
Apr 14, 2005
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I don't understand specifically what he did wrong.
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Alleged, insider trading. Note: from one article I saw, he discussed AMD's middle east buyout with someone else, and she is the one who leveraged the information at the hedge fund.

Reagrding insider trading, Martha Stewart says, "That's a good thing"--if you want to make money, and you don't get caught.

http://en.wikipedia.org/wiki/Insider_trading

 
aigomorla

aigomorla

CPU, Cases&Cooling Mod PC Gaming Mod Elite Member
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Sep 28, 2005
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Originally posted by: NXIL

Reagrding insider trading, Martha Stewart says, "That's a good thing"--if you want to make money, and you don't get caught.
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i can think of several other things that are better if you dont get caught.. :p
 
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Eeqmcsq

Senior member
Jan 6, 2009
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And even though he's no longer the CEO of AMD, he's still causing AMD's stock prices to fall. What a disaster of a person.
 
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Idontcare

Elite Member
Oct 10, 1999
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Originally posted by: NXIL
I don't understand specifically what he did wrong.
Click to expand...

Alleged, insider trading. Note: from one article I saw, he discussed AMD's middle east buyout with someone else, and she is the one who leveraged the information at the hedge fund.

Reagrding insider trading, Martha Stewart says, "That's a good thing"--if you want to make money, and you don't get caught.

http://en.wikipedia.org/wiki/Insider_trading
Click to expand...

He didn't do the insider trading though, nor did he benefit from it by the accounts of what happened in the media, so its easy to see why he's merely a person of interest for reasons of his ability to testify as to what was communicated.

Its not surprising that his name would pop up in drama scenarios like this, he's a quality character, but at the moment he isn't even alleged to have committed insider trading. Just guilty of opening his mouth in the presence of company that should not have been privy to what was coming out of it.

The real SEC insider trading crap happened with the ATI acquisition that was bankrolled by Hector telling all the bankers that AMD was having a blockbuster quarter up until the point that funding was secured, then they dropped the bombshell quarterly guidance update that rocked the stock downwards. That was pure malicious stock price manipulation by Hector and company so they could buy ATI with over-valued AMD stock swap as well as secure better loan terms as their credit-rating was inflated by the same process.
 
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Martimus

Diamond Member
Apr 24, 2007
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Yeah, looks like he is resigning according to Daily Tech. Of course, I don't exactly take what they say at Daily Tech as gospel, but it is good news if true.
 
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Idontcare

Elite Member
Oct 10, 1999
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Yep, Hector is out, I imagine it won't be long (month or less) and the other shoe will drop...this can only be the tip of the iceberg but these things take time (from our perspective) to come full circle.
 
Scotteq

Scotteq

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Apr 10, 2008
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In the eyes of the Securities Exchange Commission, it matters not if you personally profited. The trading of insider information is Illegal, period. That he (allegedly) told someone else information that the second party acted on is enough. That he resigned his position within days of the news also speaks volumes, IMO.

And yes, people do it all the time. Getting caught, OTOH....
 
Z

Zoomer

Senior member
Dec 1, 1999
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Idontcare said:
The real SEC insider trading crap happened with the ATI acquisition that was bankrolled by Hector telling all the bankers that AMD was having a blockbuster quarter up until the point that funding was secured, then they dropped the bombshell quarterly guidance update that rocked the stock downwards.
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Frankly, AMD needed all the help they can get. Doesn't make his actions right, but just saying.

He's probably getting payback now from all these that transacted based on that information. I'd say the traders probably turned him in because of that.

Looking at it now, buying out AMD was probably one of the best decisions made.
 
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thilanliyan

Lifer
Jun 21, 2005
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How the heck do these guys get these top jobs? Don't they teach any ethics with the business courses they take? All these crooked CEOs should should be jailed for LONG periods of time.
 
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v8envy

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Sep 7, 2002
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I still chuckle over Hector's quote re: how he couldn't understand why his company would be worth 50% less than a month previous. He just couldn't stop himself from spewing all sorts of harmful gibberish.

And the answer to your question is: connections. It's not what you know, it's who you know. The amount of top executives rising to their position solely on merit can be counted on the toes of one hand.
 
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Idontcare

Elite Member
Oct 10, 1999
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thilan, v8envy speaks the truth, that and the fact that there is basically one playbook from which all these guys are educated when it comes to american-styled business management.

Consider that the principles of our currently implemented version of capitalism (there are many sects within capitalism) are such that we want to be able to presume that the personal motivation of greed by the one can be harnessed to satiate the motivation of greed for the many.

That is why CEO's are given immense decision-making capabilities and are stewards of immense business wealth and at the same time we liberally enrich them with shares of stock in the business with the goal being that the CEO's own unbridled passion for pure greed will motivate their decision making process (which is supposed to be in the shareholders best interest regardless the size of the paycheck anyways) to be aligned with the best interests of the shareholders.

It is an interesting financial model we have iterated ourselves into over the course of the past 80 years since 1929...the loss of manufacturing jobs definitely correlates to the loss in privately owned business (where profit motives can be a little less short-term) and the rise in wall-street publicly owned mega-corps with a handful of well compensated decision makers motivated to do what makes sense for the next 90 days and to not think about anything much farther out than that.
 
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thilanliyan

Lifer
Jun 21, 2005
12,046
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v8envy said:
And the answer to your question is: connections. It's not what you know, it's who you know. The amount of top executives rising to their position solely on merit can be counted on the toes of one hand.
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Yeah I forgot about that...I thought they get there on merit...then I realized we live in the real world. :)

Idontcare said:
It is an interesting financial model we have iterated ourselves into over the course of the past 80 years since 1929...the loss of manufacturing jobs definitely correlates to the loss in privately owned business (where profit motives can be a little less short-term) and the rise in wall-street publicly owned mega-corps with a handful of well compensated decision makers motivated to do what makes sense for the next 90 days and to not think about anything much farther out than that.
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Seriously...almost everything is owned by large multinational companies these days which somehow have rights like individuals would have. And the publicly traded ones are probably some of the worst ones because of how much is demanded of them through their stock prices.

Anyway, if he did do something wrong hopefully he gets a huge fine and jail time (if it's applicable).
 
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Concillian

Diamond Member
May 26, 2004
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thilanliyan said:
How the heck do these guys get these top jobs? Don't they teach any ethics with the business courses they take? All these crooked CEOs should should be jailed for LONG periods of time.
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Of course they teach the ethics of upper management.

They teach that in order to get into and stay in upper management you need to disregard ethics except for cases where it's the law and you can't avoid getting caught if you disregard them.

One night when my wife was complaining about her bosses boss, I explained to her about the two kinds of bosses. Those who are good to the people under them, and those who are good to their superiors and have much less regard for those underneath. Yeah... guess which ones get promoted?

The way the system works promotes those who can most effectively disregard ethics.
 
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zmatt

Member
Nov 5, 2009
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Ruiz became chairman of the board in 2004, right when K8 was coming out. He had the most power then and you can in part blame AMD's failure to develop a competitor to Core on him.
 
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