student loans

Morning Ethics Warm-Up, 10/22/2017: My Unfair College Admission, U. Penn’s Bigoted Grad Student, Fox News Imitates The Weinstein Company, And THIS Is An Unethical Lawyer…

/ Jack Marshall / 89 Comments

Good Morning!

1 Yesterday’s ethics  bombshell was the news that Fox News extended its contract with star bloviator Bill O’Reilly earlier this year, knowing that he had agreed to a $32 million settlement with a woman who accused him of  repeated harassment, a non-consensual sexual relationship, and other offenses. Nonetheless, it decided  it decided to sign him a four-year, $25 million a year, contract extension. The New York Times scoop reported that Rupert Murdoch and his sons,  decided that it was worth it to keep O’Reilly even as Fox News was trying to recover after having to fire Roger Ailes for multiple sexual harassment claims. Fox added to the O’Reilly’s extension a clause that allowed for his dismissal if new allegations of harassment or other relevant information came out regarding the previous accusations.

Boy, am I glad that I didn’t lift my personal Fox New boycott after O’Reilly left.

This is unconscionable conduct by Fox, equal in its slimy ethics void to what the Weinstein Group did when it acknowledged its founders sexual predator proclivities in his contract. Fox News, by keeping O’Reilly knowing that he had harassed its employees (and worse),

  • demonstrated to its staff that it cared more about ratings and profits than principles and the safety of its female employees and guests
  • sent the message that if you were a big enough cheese at Fox you can get away with abusing women
  • proved that the sick and sexist culture nurtured by Roger Ailes from the beginning was still flourishing.

Ugh. But I can’t say I’m surprised. [Mr Kimble (Alvy Moore) on Green Acres: ” I can’t say I’m surprised. Actually, I can say I’m surprised. I’m surprised! But I’m not surprised.”]

How many other companies tolerate sexual harassers in their executive offices outside of Hollywood? A lot.

O’Reilly, demonstrating again that he is a liar as well as as a sexual predator, absolutely denies that he ever harassed anyone. He needs better lawyers, then. Harvey Weinstein paid off an actress he raped for just $100,000, and poor Bill had to fork over 32 million bucks for something he didn’t do!

2. This morning’s “Wait—WHAT?” ethics headline is this one, from the ABA News: “Lawyer who blamed ethics case on mother can’t discharge $500K in student debt, federal judge rules.”

Illinois lawyer Donald Rosen argued that his three-year license suspension for misappropriating over $85,000 in client funds made it impossible to find appropriate work and so should be allowed to discharge his $500,000 student debt. (How did he end up with a $500,000 student debt?). ‘Uh, no,’ ruled U.S. District Judge Rebecca Pallmeyer, perhaps because Rosen had paid only about $11,000 in student debt over the previous 37 years.

Why did Rosen blame Mom? He claims his 82-year-old mother, who worked at his firm, inadvertently used client funds to pay business expenses.  Rosen said his mother was embarrassed by her actions and falsified bank statements to cover it up. Then, Rosen says, he innocently provided those fake bank statements to police and the hearing board considering the ethics case against him.

3. How can this happen? Why is it happening? Who defends this? How long will it continue? Continue reading →

Signature Significance: Bernie Sanders’ Ignorant Tweet

/ Jack Marshall / 26 Comments

Bernie tweet

Yesterday, the Democratic candidate for President of the United States, a long-time member of the United States Senate, tweeted this message to his “followers,” and also, given the nature of Twitter, the nation:

“You have families out there paying 6, 8, 10 percent on student debt but you can refinance your homes at 3 percent. What sense is that?”

Now, if you don’t instantly recognize why this is an astoundingly ignorant statement, especially for a Presidential candidate running on a platform of economic restructuring, that’s okay. Don’t feel badly. It’s a weekend, you’re probably groggy from all the holiday cheer, and most important of all, you aren’t presuming to hold yourself out as qualified to be President, or constantly lecturing about the evils of capitalism. Sanders is, however, and this cretinous statement is signature significance. Nobody who understands loans, interest, collateral, banking, or economics would say, write or publish such a fatuous statement, even once. This is signature significance: an informed, logical, attentive, competent individual will not make such a bone-headed mistake…never. Sanders, however, has said this at least twice; in October, he tweeted a variation on the same economically ignorant theme:

“It makes no sense that students and their parents pay higher interest rates for college than they pay for car loans or housing mortgages.”

Actually, it does, Senator; it makes perfect sense, unless you are twelve. The concept is called “collateral.” That is something of value that  a lender can take if a borrower defaults on the loan. The deal is interest, plus security, the collateral. A house or a car are tangible collateral, so the interest rate can be lower. When the loan is for college tuition, however, there is no collateral. If the borrower defaults on the loan, the bank can’t take the student’s diploma, or education, or download all of the alleged knowledge the loan paid for from brain to laptop. Of course the interest rate is higher. That is, “of course” if you know anything at all about finance.

The unavoidable and shocking conclusion: Sanders is holding himself out as the leader to revolutionize how the U.S. economy works, stimulate growth and jobs, and show the way to a fairer and more just financial system, yet he is stunningly uninformed about the basics of finance, hasn’t learned a thing in all his years in the Senate, and worse, lacks the diligence to learn what he has an obligation to understand in order to justify having a vote on economic matters in the U.S. Senate, never mind setting policy as President.

This is bad.

Is there any excuse or defense for that tweet? No. Should anyone trust an elected official this ignorant and so lazy and arrogant that he makes no effort to disabuse himself of financial illiteracy? No. Does such a bone-brained misunderstanding mean that no intelligent person should listen to or take seriously any of his pronouncements about the economy? Yes.

To be fair to the Senator, let’s try to find some explanation for this that doesn’t prove that he couldn’t pass Economics 101 at a community college: Continue reading →

KABOOM! The University of Houston Is Paying Matthew McConaughey $135,000 To Give A Commencement Speech

/ Jack Marshall / 17 Comments

head blowsThis isn’t just your usual, run-of-the-head Kaboom! where my brains go everywhere after a story makes my head explode. This is an angry Kaboom! where I kick my brain chunks around in disgust before the clean-up.

There is no possible excuse for this. The University is taxpayer funded, and if I lived in Houston, I’d be picketing graduation. The University announced in January that the 2013 Academy award-winner was speaking but avoided revealing his fee, until the persistent  the Houston Chronicle got the word on March 31. The paper said that the Celebrity Talent agency tried to block  the Chronicle’s Freedom of Information requests, arguing “that if UH tells the public how much it plans to pay McConaughey, a ‘reporter or someone’ might create ‘unfair negatives online.’ Yes, I think that was a reasonable assumption.

Scattered thoughts as I clean up the mess: Continue reading →

Here’s Something Else For Unemployed Law Grads To Worry About

/ Jack Marshall / 16 Comments
Damocles, Attorney at Law

Damocles, Attorney at Law

A legal ethics specialist with the D.C. Bar, speaking at the Bar’s mandatory ethics course, opined that a lawyer’s student loan debt could create an irresolvable conflict of interest preventing him or her from taking on certain cases, at least while complying with the ethics rules

I never thought about that before, but horrors!…he’s right! Continue reading →

Ethics Hero: Thomas McGregor

/ Jack Marshall / 23 Comments
"Just paying off my student loans..."

“Just paying off my student loans…”

One of the criteria for admission to the practice of law is proof of good character, and what is considered proof of bad character will keep even a stellar law grad out of the courtroom. Bad character can be inferred from many kinds of conduct—criminal convictions, lies under oath, and failing to meet financial obligations, among others. The latter has occasionally blocked an otherwise qualified young lawyer from entering the profession when unpaid debts get out of hand, and that means that the most prominent unpaid debts in recent headlines, student loans, can sometimes foil a legal career. New York law grad Robert Bowman, last I checked, was still trying to convince the New York Bar that being over $400,000 in debt on his student loans didn’t mean he wasn’t fit to practice law. So far, he hasn’t succeeded.

Maybe he should follow the lead of Thomas McGregor.  Continue reading →

The Difference Between Unemployed Scientists and Unemployed Lawyers

/ Jack Marshall / 23 Comments

A front page story in today’s Washington Post casts interesting perspective on an Ethics Alarms rumble that broke out here a couple of weeks ago. One of the many websites where underemployed, over-indebted law grads hang out to commiserate—sites with pathetic names like “butidideverythingrightorsoithought”—discovered a post from the days when people were taking Occupy Wall Street seriously, in which I chided a protester whose sign blamed his law school  for his failure to  find a job, without giving due weight to the fact that sitting in a park whining about his plight wasn’t doing him any good either. Suddenly Ethics Alarms experienced an avalanche of indignant and often personally insulting comments introducing me to the strange world of the JD conspiracy theorists, who maintain that law schools engaged in an intentional conspiracy or “scam” to gull naive college grads into believing that a law degree was a sure-thing ticket to Easy Street and six-figure starting salaries.

In the Post’s report, we learn that other advanced degree-holders, namely PhDs in scientific fields, are also unable to find work or toiling in fields unrelated to their degrees. The Post says:

“Traditional academic jobs are scarcer than ever. Once a primary career path, only 14 percent of those with a PhD in biology and the life sciences now land a coveted academic position within five years, according to a 2009 NSF survey. That figure has been steadily declining since the 1970s, said Paula Stephan, an economist at Georgia State University who studies the scientific workforce. The reason: The supply of scientists has grown far faster than the number of academic positions.”

Sounds a lot like the legal market to me! Continue reading →

Comment of the Day on “Young, Gullible, Lazy, Unimaginative and Unbelievable: I Wonder Why This Lawyer Has Trouble Finding A Job?”

/ Jack Marshall / 59 Comments

Back in October of 2011, I wrote a post in reaction to the sign reproduced left, held by an Occupy Wall Street protester who either was an unemployed law graduate or who plays one on TV.   Many are the ethical matters and controversies that have spilled on these pages since, and copious is the water that has flowed under the bridge, but because not very many people, comparatively speaking, read ethics websites in general and this one in particular, it took the better part of a year for that post to reach the laptop of  disgruntled law grad with access to a website for disgruntled law grads. Thus suddenly my name has been taken in vain in several fora where underemployed, student loan-burdened JDs hang out. Some, gratefully, have been kind enough to alert me with comments to Ethics Alarms, expressing their unhappiness with my insensitivity. This, the Comment of the Day, is such a post, by lawyer (presumably) Bobby Wilberger.

I must say at the outset that Bobby is lucky to have this posted, and I must say that because I don’t want another lawyer citing it as precedent. Bobby, who by definition if his post is to be taken seriously, had legal training, apparently didn’t absorb the part about following rules, being honest and truthful and reading documents relating to your work carefully. The posting requirements for Comments, clearly indicated at the top of this page, require a valid e-mail address. Bobby did not supply me with such an address, instead giving me a fake address with the clever suffix of “fake.com”.  This would pretty much ding Bobby if I were hiring, and is consistent with my over-all thesis that if you are an un- or underemployed law grad the first thing you need to do to get to the bottom of your problems is to look in the mirror.

I’ll have more to say after Bobby’s post. Here it is, the Comment of the Day, on Young, Gullible, Lazy, Unimaginative and Unbelievable: I Wonder Why This Lawyer Has Trouble Finding A Job?: Continue reading →

Comment of the Day: “Is Buzz Bissenger Right? Should College Football Be Banned?….”

/ Jack Marshall / 7 Comments

You’ve read the Comment of the Day….now read the book!

In his Comment of the Day, Michael elaborates on the ethics of college sports generally, going beyond the original topic of major football programs. The expenditures on student athletes is an ethics scandal all by itself, as Michael makes clear. When the headlines in the D.C. area were all about Maryland cutting eight varsity sports, I was stunned to learn 1) that the university spent a whopping $67, 390 per student athlete, and that this was the lowest amount in the the ACC (as opposed to Florida State’s $118, 813).  What possible justification could there be for this, when tuition costs are already crushingly high? Michael’s post makes the answer clear: none.

Here is Michael’s Comment of the Day, on Is Buzz Bissenger Right? Should College Football Be Banned? Is He KIDDING? Of Course It Should…:

“What is shocking is how big an impact this has on college student lives and how little anyone actually cares about learning and how little people actually care about the college students.

“If you have seen the news recently, there is a debate going on about college loans. There are also stories every few days about the high costs of college and skyrocketing college loan amounts that are the next big bubble to burst in the economy. It is obvious that this is going to end badly, with devastating consequences for the students, the education system, and the whole of US, but no one wants to actually do anything about it. Everyone wants to just stick their fingers in their ears and hope it will all turn out OK like that mortgage-backed-securities thing did. If you want to get to the bottom of the problem, you first need to start looking at where the money goes.

“How much does college actually cost?” Continue reading →

The Tricky Ethics of Trading Sex For Tuition

/ Jack Marshall / 9 Comments

 

It's not generally known, but Anna Nicole Smith initially hooked up with billionaire husband J. Herbert Marshall so he could pay her tuition at MIT.*

Seekingarrangement.com is undoubtedly an unethical website. The question is how unethical, and that is why I’ve taken longer than usual to write about it, and the social phenomenon it and other websites are fostering.

The site is per se unethical because it facilitates adultery, infidelity and improper workplace conduct, by definition and unequivocally, convicted by its own words:

“Rich and successful. Single or married, you have no time for games. You are looking to mentor or spoil someone special — perhaps a “personal secretary”? secret lover? student? or a mistress for an extra-marital affair?”

Based on this alone, Seekingarrangement.com is Ashley Madison (the adultery website) all over again. Case closed, no appeal. A website is unethical when it endorses, encourages, and assists in dishonest conduct that is guaranteed to cause harm to third parties. The “consenting adults” argument doesn’t work, and doesn’t apply, when the adults are consenting to something that violates commitments, agreements and promises made to other parties who don’t have the option of consenting.

Seekingarrangement.com, however, became the topic of much debate this month for another reason: its use by desperate students, aspiring students or indebted graduates to pay their college tuition. In this it is like the more specialized Seektuition.com, which is solely devoted to matching horny, rich, developmentally retarded and presumably repulsive older men who can’t find real relationships to hot, poor, young women willing to exchange their bodies and dignity to  “help sponsor” their “ dorm rent, books, or provide assistance for tuition.” (“Perhaps even take you shopping for those new clothes you want to impress your sorority sisters!”). The Huntington Post broke the story, telling the tales of both students who “hook up” with wealthy, older men over the internet using Seekingarrangement.com and similar sites, have sex with them, and get tuition money or tuition loan repayment funds in return, while the wealthy men gladly pay big bucks to have an evening of passion with a co-ed and some Viagra. Continue reading →

Kelli Space’s Cyber-Begging? Not Unethical, Just Desperate

/ Jack Marshall / 4 Comments

Northeastern alum Kelli Space, 23, owes $200,000 on her student loans, and has to pay federal student loan agency Sallie Mae $891 per month. That figure will nearly double in a year, and Kelli doesn’t make enough to pay off her debt. In desperation, she has launched a website called Two Hundred Thou, asking for donations. These aren’t charitable donations, now—you won’t get any deduction for giving to Kelli, any more than you will giving to the homeless guy on the street. This is begging, plain and simple.

Her pitch: Continue reading →