Fourth largest financial cooperative just got larger

Fourth largest financial cooperative just got larger

2 Comments
  • Bob T 2015-01-05 10:39:14 AM
    Although I appreciate your comments that Leroux doesn't have to worry about quarterly reports there is a downside to the lack of control by one person or group. What it means is control by management rather than the owners and that can also be disastrous.

    There is a certain comfort in knowing that an autocratic management can be held in check by activist shareholders.
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  • Will Ashworth 2015-01-06 8:56:33 AM
    Thanks for commenting Bob.

    Activist shareholders do have a pretty good record when it comes to fixing poorly performing stocks. Bill Ackman's certainly done well with this approach.

    And you are right that Leroux potentially could abuse the privilege of running one of the world's biggest financial cooperatives but I doubt she will.

    It's a lot harder to ignore people when they actually use your products and also own a piece of the company.

    The cooperative business model works just fine.
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