Appearance of Impropriety II: “Here’s Approval For That Deal You Wanted…What? Sure I’d Like to Work for You! Wow, I Never Saw THAT Coming!”

What's there to be suspicious about?

Meredith Attwell Baker, a member of the Federal Communications Commission who voted to approve Comcast’s takeover of NBC Universal in January, is leaving to  become senior vice president of government affairs for ….Comcast-owned NBC Universal.

Hey, why are you so suspicious, you jaded cynic, you? Comcast says it did not begin discussions with Baker about a possible job until after the takeover had her seal of approval. So it’s all on the up and up! Right? Right?

Okay, let’s say we believe that, since doing otherwise would amount to bribery. It doesn’t matter, and I don’t care. Taking a major job with  a company whose back you scratched with a favorable ruling as a government regulator looks terrible, promotes public distrust, erodes faith in regulatory structures, and is unethical. There are other jobs in the world for people with Baker’s credentials; she doesn’t have to take one that makes the U.S.  government’s business regulatory apparatus look like it’s fixed.

A condition of any regulator’s employment with a federal agency should be a pledge that he or she will never accept a paid position for a company that has benefited from the regulator’s rulings…not in a year, not in a decade, not ever.

Unethical Quote of the Week: Sen. John Ensign

While I stand behind my firm belief that I have not violated any law, rule, or standard of conduct of the Senate, and I have fought to prove this publicly, I will not continue to subject my family, my constituents, or the Senate to any further rounds of investigation, depositions, drawn out proceedings, or especially public hearings.”

Sen. John Ensign (R-Nev.), announcing his resignation from the U.S. Senate about two years late. Ensign’s continuing service in the upper chamber has been a continuing embarrassment thanks to a 2009 sex scandal and sordid cover-up attempt. Interestingly, Ensign maintains that such conduct doesn’t violate any “standard of conduct” for him and his colleagues.

Sadly, perhaps he’s right.

“I didn’t violate any laws or rules” has been Ensign’s mantra since it came to light that he: Continue reading

Ethics, Ethics, Everywhere…

Stories with ethical implications are popping up everywhere, in many fields. I’m running hard to keep up; if you want to join the race, here are some recent developments and notes:

  • A prominent Harvard professor and respected researcher just retracted a major paper and has been put on leave, as an investigation showed irregularities in his methods and results. “This retraction creates a quandary for those of us in the field about whether other results are to be trusted as well, especially since there are other papers currently being reconsidered by other journals as well,’’ wrote one scientist. “If scientists can’t trust published papers, the whole process breaks down.’’
  • A Wisconsin lawyer bought a farm from his own client in a bankruptcy matter, a classic conflict of interest. The lawyer’s defense was amusing: since his license had been suspended, he no longer had a fiduciary duty to his now former client. The court canceled the sale. The story is on the Legal Profession Blog.

The Amazing, Versatile and Unethical Goldman Sachs Code of Ethics

Perhaps we all owe Goldman Sachs an apology. Everyone heaped outrage and ridicule the April spectacle of its executives going before the U.S. Senate and asserting under oath that they saw nothing at all unethical about intentionally selling “crappy” investment products to their trusting customers, then making money for their own firm by betting that the products would fail. Many were reminded of the tobacco executives, in the famous AP photo, all raising their hands to swear that they did not believe nicotine was addictive. After all, Goldman Sachs’s own website pledged openness, honesty, trustworthiness and integrity, saying,

“A critical part of running the marathon is acting consistently and playing a fair and honest game. ‘There’s only one thing we sell, and that’s trust.’ This applies to anything, but nowhere more than Investment Management. Clients trust us to do the right thing, and particularly when you’re in investment management and you’re appointed to manage clients’ money, they trust that you’re going to do it in a prudent manner. The worst thing you could do is breach that trust. We look for people who want to run the marathon, and who understand that trust fuels it.”

Now it seems that we were lacking a crucial document: the firm’s internal Code of Ethics, which Goldman Sachs recently made public. Under the provisions of this remarkable Code, what Goldman Sachs did to its clients wasn’t unethical at all; deceptive, conflicted, and unfair, yes…but not unethical, in the sense that it didn’t violate the Ethics Code itself. “Impossible!” you say? Ah, you underestimate the firm’s cleverness. Continue reading

The Not-So-Baffling Mystery of the Missing Ethics Rule

ABA  Model Rule 7.6: Political Contributions To Obtain Legal Engagements Or Appointments By Judges
A lawyer or law firm shall not accept a government legal engagement or an appointment by a judge if the lawyer or law firm makes a political contribution or solicits political contributions for the purpose of obtaining or being considered for that type of legal engagement or appointment.

That’s pretty clear, is it not? The American Bar Association, in its Model Rules of Professional Conduct, now followed (in various, eccentric forms, to be sure) by 49 states, the District of Columbia and Puerto Rico, emphatically declares that “pay-to-play” arrangements are unethical for lawyers even in states where the sleazy practice might be legal. “Pay-to play” is, after all, classic corruption, older than Mayor Curley, Richard Daley, Boss Tweed and Mister Potter. Lawyers contribute big bucks to the campaign funds of state and local powerbrokers, including Attorneys General and judges, and get big state contracts in return. It is indefensible ethically, although you can find plenty of people who will defend it, their tongues crossed tightly behind their backs all the while. Continue reading

Government Lawyer No-No’s

Laurie Williams and Allan Zabel, two Environmental Protection Agency attorneys based in California,  posted a YouTube video criticizing the Obama administration’s climate change policy, citing a Washington Post op-ed piece. When the EPA told them to either take down the video or edit out references to their work with the EPA, some organizations cried “censorship.” Continue reading