Weeks and months go by, and the news stays just as heavy as it always has. Luckily we’ll always have the financial misfortune of others to learn lessons from. This week in financial blunders we’ll go international with our money mishaps, but first we’ll start close to home.
Wal-Mart’s Rollback Promises
Comedy fans were very upset a few months ago when Tracy Morgan was involved in a terrible auto accident involving a sleep-deprived Wal-Mart trucker, but they have more reason to be upset now. Wal-Mart released a statement earlier this week saying the “30 Rock” actor was partially at fault because he wasn’t wearing a seat belt. This could be a brand failure for Wal-Mart because they already said they would take full responsibility for the accident, according to Morgan’s attorney.
Morgan and others were hit by trucker Kevin Roper after he had allegedly been awake for more than 24 hours and driving approximately 13 ½ hours straight, above the 11-hour maximum for truckers. Roper was speeding at 65 mph in a 45 mph construction zone when he hit the limo van that Morgan and others were in. The lawsuit filed by Morgan and others injured in the crash asks for “punitive and compensatory damages,” which Wal-Mart appears to be attempting to avoid now. Federal courts will decide who is ultimately at fault for the accident, but it’s not improving Wal-Mart’s image as reports came out recently that Morgan’s injuries may prevent him from ever performing again.
Who Runs the World? (Banks)
The World Bank, a financial institution partnered with the United Nations, left some people scratching their heads this week after some questionable financial decisions, according to Japan Today. The World Bank is in the midst of “cost-cutting restructuring,” which is why many were surprised to see four senior officials get significant bonuses recently. Chief Financial Officer Bertrand Badre’s approximate salary of $380,000 had a nice $94,000 bonus added to it in the fiscal year of 2014.
This happened under the lead of World Bank President Jim Yong Kim, who led an initiative to financially tighten up in the previously mentioned restructuring of the bank. Japan Today mentions the specifics, stating the restructuring aims to “reduce spending by $400 million by 2016, in a total budget of $5.0 billion. It has not ruled out job cuts to reach that goal.” These bonuses have obviously not soothed World Bank workers, and in June the World Bank’s staff association sent a letter directly to President Kim expressing their concerns on the cost-cutting restructuring.
Big Trouble in Protesting Hong Kong
Hong Kong has been in the spotlight this week as thousands of protestors have blocked the streets of the Chinese city demanding democracy in a massive display of civil disobedience. Chai Yan Leung, daughter of Hong Kong chief executive CY Leung, fanned the fire by posting gaudy and wasteful comments on Facebook earlier this week. An article from Times of India shows the entire cringe-worthy quote:
“The necklace on my profile pic is not a dog collar, silly!!! … This is actually a beautiful necklace bought at Lane Crawford (yes – funded by all you [Hong Kong] taxpayers!! So are all my beautiful shoes and dresses and clutches!! Thank you so much!!!!)”
She later corrected this statement, implying not all of them paid for her fashion accessories “…since most of you here are probably unemployed hence all this time obsessed with bombarding me with messages.” These posts are hurting her father’s image during a time of political unrest. The protestors are demanding that CY Leung step down from his position so the citizens of Hong Kong may democratically elect a chief executive.
Those are all the financial blunders we have for you this week. Please comment below with more if we’ve missed a story you want to talk about.
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