Ethics Outrage and Cover-Up: Racial Bias At the Justice Department

The story told by former Department of Justice attorney J. Christian Adams is shocking in many ways. It shows an abject refusal of Attorney General Holder’s D.O.J. to enforce the law equally with black and white. It shows sympathy within the Obama Administration for, of all, groups, the Black Panthers, a racist organization. It details perjury by high-ranking officials, and a hard breach of President Obama’s pledges to uphold the rule of law, embrace transparency, and to embody a post-racial philosophy. Finally, it shows the same kind of manipulation of law enforcement by ideological zealots that stained the Bush Department of Justice. Continue reading

Ethics Audit: the Deep-Water Oil-Drilling Ban Saga

President Obama’s ban on deep-water oil drilling in the wake of the Deepwater Horizon Gulf oil disaster pits important ethical values against each other: fairness vs. responsibility. On both sides of the equation is prudence. New Orleans federal judge Martin Feldman over-ruled the ban and issued an injunction against it, saying in effect that there was no contest: the ban isn’t fair, prudent, or responsible.

The Obama Administration’s ethical argument supporting the ban goes something like this: Continue reading

Easy Ethics Call: Gen. McCrystal Must Go

Ignore, for the time being, the fact that several other high-ranking Obama officials richly deserve to be fired for egregious failings of honesty and competence. Gen. McChrystal, the commander in charge of  U.S. combat in Afghanistan, has followed in the unfortunate footsteps of General Douglas McArthur, who openly criticized President Harry Truman and lost his command as a result. McChrystal has to go too. Continue reading

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

Super-Soaker Ethics at Joe Biden’s Party

I don’t think I can do a better or more thorough job than Salon’s Glenn Greenwald at making crystal clear what is so ethically wrong with members of the Washington press corps happily frolicking with Vice President Biden, Rahm Emanuel and other administration Obama officials at Biden-hosted party, so read his column here. Not that what Greenwald says shouldn’t be immediately obvious, especially to the journalists themselves, but it obviously isn’t. I just heard Judith Miller, the former New York Times reporter turned Fox flack, laughingly say that she used to share an Amtrak car with Biden when he was a Senator to get inside information, and she didn’t see why accompanying him on a water slide was any different.

Oh, come on. Continue reading

What’s Wrong About the Sestak Caper

The Sestak-White House “Please Force Pennsylvanians to Keep Arlen Specter as Senator” story has officially cracked wide open, and reports are coming out fast and furious while the White House is spinning faster than Kristi Yamaguchi on speed. It began with Rep. Sestak making himself look determined and incorruptible by telling a radio talk show host on the air that the White House had promised him a plum job if he didn’t challenge Specter in the primary. Once Sesatk won, Rep. Issa of the Republican Truth Squad began demanding that Sestak reveal who made the offer, since it would be a Federal crime (as Sestak had described it) and another Federal law requires Sestak to report Federal crimes committed by government employees. The details will be clarified, corrected and spun some more over the next few days, but the following is clear: Continue reading

Goldman Sachs Ethics: An Easy Call

Sometimes the biggest ethics stories are the easiest. I haven’t written much about Enron, for example. When a company uses deceptive, shell corporations to hide its liabilities so profit reports look artificially rosy and investors keep buying company stock, it is obviously unethical. Even the ethics-challenged management of Enron could figure that out. The Goldman Sachs scandal, once one clears away the static and spin, is almost as straight-forward.

Are the Democrats seizing upon Goldman Sachs as a scapegoat for the financial meltdown they, like the Republicans, were complicit in as well? Obviously. That doesn’t mean that the firm doesn’t deserve all the abuse that is being heaped on it. Did the S.E.C., supposedly an apolitical and independent agency, time the announcement of its suit against Goldman Sachs to help rally public opinion behind the Obama Administration’s proposed Wall Street reforms? It wouldn’t surprise me. We have seen previous Justice Departments, the C.I.A., the F.B.I. and other supposedly “non-political” entities act blatantly partisan over and over again. The S.E.C. trying to give Obama’s reforms a boost would be one of the least dastardly of these breaches, especially since the public should be informed about the kind of conduct the culture of Wall Street permits. G.O.P. complaints about the timing of the announcement are, to say the least, strange. Would it be better to hide this story from the public? What matters is whether the S.E.C. has a legitimate case. It is clear that it has. It may not turn out to be a winning case, but it is legitimate. [Note: Personally, I think it is  more likely that the S.E.C. announced the law suit to counter the embarrassing revelation that so many of its regulators spent endless hours on the job surfing and downloading pornography off the internet.]

The legal issues will probably be settled in court; the topic now is ethics. After watching the testimony of various Goldman Sachs officials before the Senate, I find it hard to see a credible argument that what the firm did—selling what its own employees referred to as “crappy” investment products to firm clients, and then betting its own funds that those products would end up losers—could be called anything but unethical. Continue reading

Arizona, Illegal Immigration, and Ethics

The State of Arizona has passed a controversial law to address the serious social, economic and law-enforcement problems caused by the bi-partisan abdication of the core government responsibility to protect our borders and enforce a fair and rational immigration policy. President Obama calls the law “misguided,” which suggests, in the absence of any current efforts by his administration to deal with the illegal immigration crisis, that he believes that doing nothing at all is “well-guided.” It isn’t. It is irresponsible and unethical.

The governance ethics principle involved here is clear, and it is one that the Obama Administration has been willing to embrace when it considers the objective important enough. For example,  national health care insurance reform will not work unless everyone who can afford to do so buys health insurance. This raises serious issues of Constitutionality and, as two seconds of listening to conservative talk radio will let you know, slippery slope problems. Never before has the State presumed to order individuals what to buy. (You don’t have to buy auto insurance if you’re willing to eschew driving.) It doesn’t take much imagination to think of ways this intrusion into personal liberty could be abused, but the alternative is not to fix the problem, Obama reasons, and that is even more unacceptable, at least if you care about the problem. In leadership and government, fixing the problem is the prime directive, and yes, this means Utilitarianism in its strongest and most potentially dangerous sense. You have to make the system work, and often, more often than we like to admit, that means ethical trade-offs. The government ethics principle is “Fix the problem with a good faith solution, and do everything possible to minimize the bad side effects as they appear.” Continue reading

Ethically Irresponsible Headline of the Month: The Drudge Report

“WILL OBAMA RETURN $994,795 IN GOLDMAN SACHS CAMPAIGN CONTRIBUTIONS?” screams the Drudge Report, in response to the Obama Administration’s charges of fraud and corruption at Goldman Sachs.

What exactly is this headline trying to imply? Continue reading

“Everybody’s Stupid”

Please. Make them stop.

It seemed that every conservative talk show host today was getting yuks from the irony of the Obama  Commerce Department announcing the launch of a new government climate change service in the middle of unprecedented snowfall in Washington, D.C. Underlying the hilarity was the persistent implication, and sometimes outright assertion, that the snowfall itself actually undermined the prevailing scientific findings of climate change research. If Hannity, Limbaugh and others who did this (and have done it before) really believe that one snowstorm, or twenty, can have any probative value at all in determining the accuracy of climate change science, then they are too ignorant to participate in policy debates about the issue.  If, on the other hand, the talk show pundits are deliberately pandering to the many science-illiterates among their listeners—and I think that is exactly what they are doing—then they are being dishonest and unfair. Continue reading