BearingPoint, Inc. (BE)

Despite the "New Blood" at the top Bearingpoint's issues go deeper than any CEO only change can fix.





Desperation has led to bad decisions and without the twin padding of readily available cash and a good reputation the effects are magnified in both the stock price and the company itself.





From the outside, entities dealing with Bearingpoint are hedging their bets and taking a second look at continuing relationships. The lifeblood of a consulting company.





Internally, as the stock price plumets and debts climb, the whole upper managment chain gets more and more frantic to do anything to get money "on the books"





Unfortunately these frenzied efforts fall into two categories.





When they actually are possible, they only make the now look marginally better than before and at the expense of the money that would have come in in the next 30-60 anyway.





When the directives from above are beyond what current policies and contractual obligations allow, all they do is lay the groundwork for fingerpointing recriminations and bad customer relations.





Not the way to retain people and garner new contracts.





Meanwhile the money that is comming in is spent in all the wrong places.