According to my Bloomberg, Mayo Shattuck III ’76 was paid $13.9 million by Constellation Energy Group (CEG) in 2007. Given all that money, and the credit crunch that started last summer, one would hope that Shattuck had gotten CEG’s finances into line. Alas, maybe not.

Baltimore Gas & Electric Co. parent company Constellation Energy Group Inc. has lost more than half of its market value this week, on concerns about the company’s financial health.

Its stock continued to fall Wednesday after facing a possible credit ratings downgrade.

Constellation issued a statement saying its credit lines remain intact, and it confirmed it has hired Morgan Stanley and UBS to evaluate strategic alternatives. It is in active discussions with potential strategic partners, Constellation said in a statement.

Constellation also repeated its limited credit exposure to Wall Street financial firms.

Standard & Poor’s said Wednesday it was reviewing Constellation’s credit ratings for possible downgrade, citing what it called “an acute crisis of confidence.”

Facing what Standard & Poor’s called a broad loss of market confidence, it says Constellation’s strategic alternatives include the outright sale of the company, “which management has informed us is at an advanced stage.”

Constellation is seeking a partner for its wholesale energy trading business, which now accounts for the majority of the company’s $21 billion in annual revenue. Concerns that turmoil at Wall Street’s financial firms may make finding an investor more difficult have triggered this week’s selloff of Constellation shares.

Constellation canceled its $12.4 billion acquisition to FPL Group, Florida Power & Light’s parent company, in 2006 after failing to satisfy state regulators.

I haven’t run the numbers, but the failure of that deal probably cost Shattuck tens of millions of dollars. There is a great story to be written on Shattuck’s career at CEG. He moved from an investment bank to a utility company despite no meaningful experience in the industry, other than having served in the CEG board for several years. At the time he was hired, feelings were good.

“We have selected the absolute best person for the job of leading Constellation Energy Group to success in the energy marketplace,” said Christian H. Poindexter, Chairman and Chief Executive Officer of Constellation Energy Group. “When Mayo Shattuck decided a few weeks ago to leave his position as Chairman and CEO of Deutsche Banc Alex. Brown, I knew immediately that we had to seize this unique opportunity to recruit a person of his quality and stature. Mayo Shattuck has a proven record of success in the world of capital markets, trading, investment banking, and corporate finance – – all fields that are vital to the success of our company.

If CEG does blow up, you can be certain that the problem was not, you know, actually delivering gas to Baltimore households. Instead, the fundamental flaw will have been to try to make money trading.

Does that mean that Shattuck in not intelligent? No! Over the last two years, he has cut the number of shares that he owns in CEG by more than one half. And selling 50,000 shares last February at a price of $93 (current price $21.90) is looking especially smart.

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