This is really unfortunate for both these guys. The first is Chesapeake Energy (CHK) CEO, Aubrey McClendon, who had to sell nearly all of his shares of common stock in the company over the past three days in order to meet margin calls. At last count McClendon held 33,469,359 Chesapeake shares, recently worth billions.
The second guy is XL Capital’s (XL) Chairman, Brian M. O’Hara, who had to sell approximately 80% of his XL common shares on October 9th in order to meet a margin loan call.
It’s good that these guys had strong faith in the value of their companies, but when that faith is backed up with margin in this type of market environment, it often does no one any good.
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