Embattled Chinese real estate developer Evergrande lopped off a few more executive heads on Friday, with CEO Xia Haijun and CFO Pan Darong both being forced to resign over mishandled deposits.
Evergrande had been investigating how 13.4 billion yuan ($1.99 billion) of its deposits were used as security for third parties to obtain bank loans, which some borrowers then failed to pay back. The pledge guarantees threatened to wipe out most of the cash holdings at its property-services unit.
Such misuse of corporate funds is a primary reason developers such as Evergrande have exhausted their funds even as they have housing projects to complete and suppliers to pay back.
As is usually the case when asset bubbles finally burst, corruption plays a key role.
At one point in my young life I was handling some pretty large sums of cash for individuals, some connected to government agencies. They trusted me with the cash because I had never messed it up, even being set up with what was apparently uncounted sums which was a test, I was later told.
What is it with these guys, do they really think the "cartel" won't catch up with them?
More Heads Roll In China's Evergrande Collapse
Those links are to Bloomberg articles from four months ago. Any updates?
At one point in my young life I was handling some pretty large sums of cash for individuals, some connected to government agencies. They trusted me with the cash because I had never messed it up, even being set up with what was apparently uncounted sums which was a test, I was later told.
What is it with these guys, do they really think the "cartel" won't catch up with them?