Litigation

Analyzing the truthfulness of corporate executives

By Tracy Coenen

The website RealScoop uses voice analysis to analyze statements made by corporate executives (or others), with the result shown on the “Believability Meter”. How cool is this? (UPDATE: Likely all a fraud and/or complete coincidence as voice analysis is unreliable. See comments below.)

The recently posted some video of Alan Schwartz, CEO of Bear Stearns, talking about liquidity problems at the firm just a couple of days before the firm imploded. The more questionable the statements of the person, the more red you see on the meter…

And here’s what the site had to say about Schwartz’s statements:

We had the Believability Meter analyze the key statements in this interview. The conversation covers rumors that other Wall Street firms will not cover new counter party risk of Bear Sterns but Schwartz denies this and claims it is nothing more than “administrative pressure.” He states Bear Sterns is not being made aware of anyone on Wall Street who has concern about the firm and speculates on why this rumor started. The rubber meets the road at the end of the clip when he states that Bear Sterns’ balance sheet has not weakened and they reported a “$17 billion of cash sitting at the parent company.” Well, then there is nothing to worry about then, right?

He was obviously downplaying the rumors/claims, as the company fell apart with in a couple of days.

You might also want to check out the Slick Willie audio that they have. Of course, when Bill Clinton denies having “sex with that woman” the meter goes crazy. Although it’s interesting to note that when he paused before her name (that was rehearsed) the meter went back to believable. Hmmm…

Hat tip to Timothy Sykes.

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Full post as published by The FRAUDfiles Blog on April 21, 2008 (boomark / email).