(Solution) - Bernie Ebbers the CEO of WorldCom a major telecommunications c -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Bernie Ebbers, the CEO of WorldCom, a major telecommunications company, was having personal financial troubles, Ebbers Pledged a large stake of his WorldCom stock as security for some personal loans. As the price of WorldCom stock sank, Ebbers? bankers threatened to sell his stock in order to protect their loan. To avoid having his stock sold, Ebbers asked the board of directors of WorldCom to loan him nearly $400 million of corporate assets at 2.5% interest to pay off his bankers. The board agreed to lend him the money. Comment on the decision of the board of directors in this situation.