AIG

The President Locks Up The “Lie of the Year” Early

/ Jack Marshall / 48 Comments

forked tongeThere has been controversy lately over the “lie of the year” designation. PolitiFact, true to its partisan-but-nobody-will admit-it soul, picked a Mitt Romney campaign accusation as its “lie of the year,” even though it wasn’t nearly the worst lie of the campaign, or even Romany’s worst. In fact, it was literally true. Romney had issued an ad saying that Jeep was moving its U.S. production to China—that was supposedly the lie—and in fact all Jeeps will now be made in China. Oh, well, election over, Romney lost, what’s done is done, mission accomplished, right, Politifact?

Thus it is mighty kind of President Obama to wrap up the lie of the year competition early and decisively in a national forum where one least belongs, his Inaugural Address. I’m sure PolitiFact won’t see it that way, but I’m engraving his name on the Ethics Alarms trophy right now.

The lie:

“The commitments we make to each other–-through Medicare, and Medicaid, and Social Security–these things do not sap our initiative; they strengthen us. They do not make us a nation of takers; they free us to take the risks that make this country great.” Continue reading →

The Third Annual Ethics Alarms Awards: The Worst of Ethics 2011 (Part 1)

/ Jack Marshall / 26 Comments

Yes, it was Joe Paterno's year, all right.

Welcome to the Third  Annual Ethics Alarms Awards, recognizing the Best and Worst of ethics in 2011!

This is the first installment of the Worst; Part 2 is here. And the Best is here. 

2011 prompted more than 1000 posts, and even then I barely scratched the surface of all the ethical dilemmas and unethical conduct swirling around us. If you have other choices for the various distinctions here and in the subsequent Awards posts, please make them known.

Here are my selections:

Unethical Community of the Year:  Huachuca City, Arizona. Leading the way among American communities that believe, in their hysteria, that former sex offenders who have served their sentences are nonetheless fair game for persecution and the denial of basic rights as citizens and human beings, Huachuca County passed an ordinance that bans registered sex offenders from the use of all public facilities, including parks, school and libraries.  Runner-up: Obion County, Tennessee. Last year, Ethics Alarms gave the county runner-up status as “Unethical Community of the Year” for sending its volunteer fire department to watch a man’s house burn down because he had failed to pay a $75.00 fee. In 2011, it did it again. I swear: if Obion County hasn’t come up with a better system and this happens again in 2012, Obion County will get the title no matter what some other unethical community does.

Most Warped Ethical Values: The Penn State students who protested the firing of football coach Joe Paterno, because, you know, he was such a great football coach that a little thing like allowing a predatory child molester to run amuck on campus shouldn’t be blown all out of proportion. Runner-up: Ron Paul supporters.

Unethical Website of the Year: Lovely-Faces, the anti-Facebook stunt pulled by Paolo Cirio, a media artist, and Alessandro Ludovico, media critic and editor-in- chief of Neural magazine, to show how inadequate Facebook’s privacy controls were. To do it, they stole 250,000 Facebook member profiles and organized them into a new dating site—without the members’ permission. The site embodied “the worst of ethical thinking: taking the identities of others for their own purposes (a Golden Rule breach), using other human beings to advance their own agenda (a Kantian no-no) and asserting that their ends justify abusing 250,000 Facebook users, which is irresponsible utilitarianism.” Continue reading →

Comment of the Day: “Dear AIG: I’m Not Going To Be Able To Keep Criticizing Occupy Wall Street For Destructive Class Warfare If You Act Like This”

/ Jack Marshall / Leave a comment

Michael, who now leads the field in Comments of the Day, picks up another with his commentary on my post about AIG’s continuing habit of living large on taxpayer funds. Here are his reflections on the post  Dear AIG: I’m Not Going To Be Able To Keep Criticizing “Occupy Wall Street” For Destructive Class Warfare If You Act Like This:

“A company can allow any expenses they want. That being said, since they are now majority owned by the US government, we need to ask who is giving the go ahead to things like this? Why haven’t they been fired? The Wall Street culture is so entitled and so out of touch with the reality of the common Americans that it is almost beyond belief.

“The Occupy Wall Street group could have a lot of legitimate gripes, but they don’t seem to have anyone with half a brain in the group. Instead of hearing “I want them to take the money from rich people and give it to me” form a college aged girl wearing $500 worth of clothes or “I have gone to every protest I can find for the last 40 years” from the aging hippies, why not try one of the following angles: Continue reading →

Dear AIG: I’m Not Going To Be Able To Keep Criticizing “Occupy Wall Street” For Destructive Class Warfare If You Act Like This.

/ Jack Marshall / 20 Comments

Pelican Hill...where wealthy insurance executives can spend taxpayer funds like it was Monopoly money!

American International Group Inc. (AIG), the huge insurer—too big to fail!— that is now majority-owned by the U.S. after a 2008 bailout of $85 billion, has resumed its arrogant, irresponsible habit of living like sultans on the money of taxpayers, many of whom are getting kicked out of their homes and who can’t find jobs.

Back in October 0f 2008, the House Oversight Committee nearly had a collective stroke when it discovered that, just one week after the federal government bailed out AIG because it was too vital a part of the shaky world financial markets to let go belly-up as it richly deserved, company executives went on a wildly-expensive retreat to a luxury resort. The executives “spent nearly $500,000 on manicures, facials, pedicures, and massages,” among other things.  Rep. Elijah Cummings (D-MD) was incredulous, and he wasn’t alone: Continue reading →

The S.E.C.’s Betrayal and Why Regulation Can’t Cure Unethical Cultures

/ Jack Marshall / 11 Comments

Your SEC at work....

I awoke this morning to read that a former U.S. Securities and Exchange Commission official has credibly claimed that the S.E.C. destroyed thousands upon thousands of records of enforcement cases in which it had decided not to file charges or to launch full-blown probes. The case records dumped included prominent Wall Street firms such as Goldman Sachs, Citigroup, Bank of America, Morgan Stanley and SAC Capital.

Here’s is how Rolling Stone concluded its excellent report on the scandal:

“Forget about what might have been if the SEC had followed up in earnest on all of those lost MUIs(“Matters Under Inquiry”). What if even a handful of them had turned into real cases? How many investors might have been saved from crushing losses if Lehman Brothers had been forced to reveal its shady accounting way back in 2002? Might the need for taxpayer bailouts have been lessened had fraud cases against Citigroup and Bank of America been pursued in 2005 and 2007? And would the U.S. government have doubled down on its bailout of AIG if it had known that some of the firm’s executives were suspected of insider trading in September 2008?” Continue reading →

Outrageous Corporate Conduct 2011: Transocean’s Unconscionable Bonuses

/ Jack Marshall / 11 Comments

"Sure, but other than THAT: great night at the theater, right?"

I believe that much of the time the corporate sector is unfairly treated by the media, politicians, and the public. Part of this conviction arises from my experience working at the U.S. Chamber of Commerce, directly under its current president when he was a rising young Turk. I dealt with corporate executives every day, and got to see the challenges of big business from their side. Most of the time, they struck me as genuinely concerned about workers, communities, fairness, while believing, of course, that an unfettered private sector was in the economic interest of everyone.

Increasingly, however, I see corporate behavior that is so arrogant, so transparently greedy, so contemptuous of the public’s intelligence, so blatantly, obnoxiously wrong that I wonder if it was all a dream. There was AIG, accepting billions from American taxpayers to save it from the consequences of its own fiduciary crimes, immediately spending some of it on lush retreats and parties for its executives. There were the leaders of Goldman Sachs, telling gape-jawed U.S. Senators that, no, they didn’t see anything unethical about selling their trusted clients investment products so awful that the company made money betting on their failure. There are the U.S. banks, hoarding their money and refusing to refinance mortgages that were unconscionable to begin with,  preferring to make the nation’s economic problems worse by foreclosing on families’ homes rather than making a good faith effort to undo a human and social catastrophe that was substantially of their own making.

Now comes the news that Transocean Ltd., owner of the Deepwater Horizon oil rig, has announced that it is giving millions of dollars in bonuses to its executives after “the best year in safety performance in our company’s history.”  Which seems perfectly reasonable, unless you want to make a big deal over that one little Gulf oil spill incident last April…you know, the one that began when a Transocean oil rig exploded, killing eleven people including nine Transocean employees. Continue reading →

Why Obama’s Party Is Going Down

/ Jack Marshall / 1 Comment

The excuses are already coming fast and furious as President Obama and his party faces a rebuke in Tuesday’s election of historic proportions. The lack of accountability so far may be forgivable; after all, nobody admits they have done a lousy, hypocritical, incompetent and dishonest job while they are running for re-election. The voter’s fury and the Democrats’ peril are being blamed, alternatively and collectively, on George Bush, on Sarah Palin, on racism, on the sad stupidity of the American public, who just are so impatient and unsophisticated that they don’t comprehend all the wonderful things that have been done for them.  It’s also the Supreme Court’s fault for allowing large corporations the right of free speech, although the union money flowing to Democrats as the result of the same decision has dwarfed corporate money.

All of these excuses are demeaning to Obama and his party, and insulting to the intelligence of everyone else.

The reason the Democrats are going down to a party that had thoroughly disgraced itself out of power just two years ago, is illustrated by a shocking report that barely caused a ripple in the news cycle. Continue reading →

Summer Rerun: “Ending the Bi-Partisan Effort to Destroy Trust in America”

/ Jack Marshall / 2 Comments

[TV is full of reruns these days, and sometimes I am grateful for them, for it gives me a chance to see episodes of favorite shows I had missed for some reason or another. Back in early March, I posted the following essay about the origins of America’s current crisis of trust in our government, and how it might be cured by our elected leaders. Since then, the crisis has deepened, and as I was doing some routine site maintenance, I reread the post. It is still very timely (unfortunately), and since far fewer people were visiting Ethics Alarms in March, I decided to re-post it today, with just a few minor edits. I promise not to make this a habit. Still, trust is the reason why ethics is so important in America: if there is a single post of the more than 700 I have written here since October 2009  that I would like people to read, this is it.] Continue reading →

DeLay and Blagojevich: Not Vindicated, Not Innocent, and Not Ethical

/ Jack Marshall / Leave a comment

Both Rod Blagojevich and Tom DeLay were taking victory laps this week, Blago because a jury failed to come to an agreement on his trial for selling political favors, DeLay because the Justice Department dropped its prosecution of  him. In the minds of both of these corrupt and shameless politicians, they were indeed vindicated, because both operate under the delusion that if one’s conduct manages to avoid breaking laws to the point where one could be found guilty beyond a reasonable doubt, then that conduct is “ethical.” This same delusion has been shared by many other human blights on American society and ethical corrupters in business and politics, including Presidents Richard Nixon, and Bill Clinton, Ken Lay, the executives at Goldman Sachs and AIG, Marion Barry, Maxine Waters, and too many others to mention. It is still a delusion. Continue reading →

Nancy Pelosi and Forced Virtue

/ Jack Marshall / 9 Comments

I’m sure my friend and colleague Bob Stone will forgive my picking on a casual phrase he used in a comment on the previous post, for it is the inspiration for this one, and it involves the important issue of forced virtue.

Bob alluded to Speaker Nancy Pelosi finally doing “the right thing” when, as reported in the morning media, she told House Ways and Means Committee Chair Charles Rangel that he had to resign his post because of multiple ethics violations. Pelosi, we now know, had avoided this for as long as possible, first ignoring Rangel’s actions, then making the dodge that the Ethics Committee first had to make its ruling (Rangel’s egregious violations have never been in doubt), then suggesting that the violations were not significant (knowing that among them was a failure to pay taxes on $75,000 of income as well as acquiring hundreds of thousands of dollars of unreported—that is, hidden—income, all on the part of the reigning chair of the committee that oversees tax legislation) because the country wasn’t “jeopardized” by them. But now the press is calling for Rangel’s head, the Republicans are making accusations that seem, for once, reasonable, and other Democratic House members have joined the chorus demanding that Charlie must go. And this is all occurring as Pelosi is trying to martial her House majority as she attempts to ram the latest health care reform package past the nation’s gag reflex.

In short, Pelosi isn’t really doing the right thing. She’s doing the only thing. Continue reading →