WorldCom analyst walks away with $30m
Published: 16 Aug 2002 10:53 BST
Prominent Wall Street telecoms analyst Jack Grubman - whose role in the WorldCom scandal is under investigation - has walked away from investment house Salomon Smith Barney with $30m (£18m).
The resignation settlement is made up of pay, a loan which won't have to be paid back to the investment bank and cashed out options.
Grubman was known for his bullish backing of telecoms stocks during the late 1990s bubble and a close relationship with scandal-struck telco WorldCom.
Since WorldCom's accounting fraud came to light Grubman has faced fierce media criticism and has even been questioned by Congress.
In his resignation letter to Salomon chief executive Michael Carpenter, Grubman said: "No professional decision I have ever faced has been so difficult. This is particularly so because, despite the current climate, I performed my work consistently with all laws and standards of ethics."
Eliot Spitzer, the New York State attorney-general whose star has risen recently because of his crusade against some Wall Street firms, is still officially investigating Grubman.
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