This Chesapeake Energy/Aubrey McLendon shit is just Beyond the Pale.
Conflicts (or the potential for conflicts) are everywhere when you have the CEO of a nat gas company – with shareholders – running a hedge fund that trades the same commodities as the corporation itself. And then all the loans and bonuses and arms-length transactions etc, it’s reminiscent of Worldcom.
Yeah, I said it.
Today’s must-read is this Reuters story that’s ricoheting around the financial web (and I bet the Fortune 500) this morning…
(Reuters) – As chairman and CEO of Chesapeake Energy Corp, Aubrey McClendon has been a powerhouse in the vast U.S. natural gas market, directing the company’s multibillion dollar energy-trading operation and setting output targets for America’s second-largest producer.
Behind the scenes, a Reuters investigation has found, McClendon also ran a lucrative business on the side: a $200 million hedge fund that traded in the same commodities Chesapeake produces.