Wall Street

Ethics Observations On The Second Democratic Candidates Debate, Part 2 of 2

/ Jack Marshall / 16 Comments

Dems three

The transcript is here.

Part I is here.

6. Sooner or later, a Democrat is going to have to answer a question about the “safe places,” microaggressions,” college campus meltdown that is, I think, just gathering momentum, and choose between alienating the young black base that elected Barack Obama, or horrifying people who believe in free speech and thought, presumably a few iconoclast Democrats and a lot of independents. Significantly, CBS didn’t ask Sen. Sanders that question.

Well, it’s significant if you  believe that CBS is protecting the Democrats. As we saw in Bernie’s coddling of Black Lives Matter, and know from the fact that he’s a Marxist at heart, he doesn’t really expect to be nominated and has no spine (see Part I), Sanders was a good bet to fully endorse the anti-free speech position taken by the students at Yale, Amherst and Mizzou. That would have put the whole Party, which right now is Hillary, on the spot. Surely CBS would never do that. The alternative is to believe that last night’s journalists were inept.

Only Hillary was asked the question, and she ducked it with something akin to what Olson Johnson called “authentic frontier gibberish”:

DICKERSON: Secretary Clinton, you told some Black Lives Matter activists recently that there’s a difference between rhetoric in activism and what you were trying to do, was — get laws passed that would help what they were pushing for. But recently, at the University of Missouri, that activism was very, very effective. So would you suggest that kind of activism take place at other universities across the country?

CLINTON: Well, John, I come from the ’60s, a long time ago. There was a lot of activism on campus — Civil Rights activism, antiwar activism, women’s rights activism — and I do appreciate the way young people are standing up and speaking out. Obviously, I believe that on a college campus, there should be enough respect so people hear each other. But what happened at the university there, what’s happening at other universities, I think reflects the deep sense of, you know, concern, even despair that so many young people, particularly of color, have…You know, I recently met with a group of mothers who lost their children to either killings by police or random killings in their neighborhoods, and hearing their stories was so incredibly, profoundly heartbreaking. Each one of them, you know, described their child, had a picture. You know, the mother of the young man with his friends in the car who was playing loud music and, you know, some older white man pulled out a gun and shot him because they wouldn’t turn the radio down.Or a young woman who had been performing at President Obama’s second inauguration coming home, absolutely stellar young woman, hanging out with her friends in a park getting shot by a gang member.And, of course, I met the mothers of Eric Garner and Tamir Rice, and Michael Brown and Trayvon Martin and so many of them who have lost their children.So, your original question is the right question. And it’s not just a question for parents and grandparents to answer. It’s really a question for all of us to answer, every single one of our children deserves the chance to live up to his or her god-given potential. And that’s what we need to be doing to the best of our ability in our country.

DICKERSON: All right, over to Kevin Cooney.

Hilarious.

Continue reading →

Now THAT’s Hypocrisy! OWS Protester Tracy Postert, Hypocrite of the Year

/ Jack Marshall / 29 Comments

Tracy Postert, before and after. Integrity is not a job requirement on Wall Street.

Out of work Ph.D Tracy Postert spent 15 days at Zuccotti Park advocating revolution, condemning the corruption of Wall Street and decrying the moral bankruptcy of the capitalist system. Then she decided to hold up a sign advertising her degree and specialty while she was protesting the evil ways of the financial district. Wayne Kaufman, chief market analyst for John Thomas Financial Brokerage, saw her on the street, was intrigued by her background in biomedical science, and took her resume. Then he asked her if she’d like to come for an interview.

Kaufman offered her a job as a junior analyst evaluating medical companies as potential investments, and she accepted. Postert has now just completed her third week as paid employee of the system she was railing against on the street, studying for exams to be a certified financial analyst.

“I want to get a perfect score,” she told the New York Post. She gets a perfect hypocrisy score already. Imagine Martin Luther King agreeing to accept  a special membership in all-white country club, or taking a lucrative job as Sen. Strom Thurmond’s advisor on racial matters. Imagine Jane Fonda signing an Army contract to recruit soldiers for the Vietnam War. Wall Street and capitalism were the embodiment of evil and injustice for Postert, until she had a chance to move from the “99%” to the 1% whose values she had sneered at.

Is there anything wrong with working as a Wall Street analyst? Hell no—unless you have derided Wall Street analysts as the scum of the earth before you had the chance to be one. I don’t assume that Tracy Postert is typical of all OWS protesters, but I am confident she is typical of many of them. Not principled, but angry. Not idealistic, but envious. Not serious, but cynical. In other words, hypocrites, just waiting for the opportunity to show it.

Here is the irony. The fact that Wall Street would make a job offer to someone as ethically inert as this intellectually dishonest and feckless class warrior shows that Occupy Wall Street is not entirely wrong about the dearth of ethical values in the business community

And the fact that an Occupy Wall Street protester would accept such an offer shows that Wall Street may be right about the protesters.

Fox News Inveils the Unethical Poll of the Month AND Inspires a Fun New Pastime: “The Stupid Choices Game”

/ Jack Marshall / 11 Comments

A Stupid Choice classic from my youth!

Fox News is determined to show that America hates the Occupy Wall Street protesters, and keeps devising polls increasingly rigged to make their case. This morning Roger Ailes’ culture warriors unveiled a new one, so intellectually dishonest, so devoid of survey legitimacy, that it made me do a Danny Thomas spit-take that soaked my Washington Post with coffee. The question (Note: This is from memory; as of this writing, I cannot find the exact phrasing posted anywhere. When I have it, I’ll use it. This is a fair approximation, however.): “What would you want your child to do when he or she grows up?” The options: 1. Working on Wall Street 2. Occupying Wall Street 3. Neither.

The “surprising results,” as one of Fox’s cloned blond bimbo news-readers bubbled:

44% chose Wall Street

28% chose Occupy Wall Street

18% chose “Neither”

Fox financial commentator Stuart Varney was shocked that 28% would choose the protesters “who want to redistribute income!” over Wall Street. “I’m sorry,” he said, “but that is un-American.”

Oh, cool your jets, Stuart. The poll is un-American; the 28% are fine, given the dishonest, false choice presented by Fox’s poll. 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 →

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 →

TARP Ethics Dilemmas: A Guide For Advocates and Critics

/ Jack Marshall / 3 Comments

Surprise! The TARP bailout of October 2008 seems to have turned out remarkably well.  The Troubled Assets Relief Program, which was and still is attacked by conservatives and Tea Party critics as a $700 billion bailout for Wall Street giants who should have been allowed to fail, is now anticipated to eventually only cost the federal government about $25 billion, according to the Government Accounting Office.

When a policy that is widely criticized as wrong-headed in principle actually works, it presents ethical problems for both advocates and critics alike.

A few helpful tips: Continue reading →

Sunday Ethics Round-Up: Cynical Fines, Drunk Norwegians, Lazy Newsmen and Pitiful Ballplayers

/ Jack Marshall / 5 Comments

Here are some ethics issues to ponder from the recent news and around the Web:

  • Who says it pays to be ethical? The astounding insistence, under oath, by Goldman Sachs executives that they had done nothing wrong in selling admittedly “crummy” investment products to clients while using the company’s own money to bet that the same products would fail will not be sufficiently punished or contradicted by the S.E.C.’s cynical cash settlement of its suit against the firm. For a $500 million penalty, Goldman Sachs is off the hook for the equivalent of four days’ income, as the Obama Administration claims to the unsophisticated public (“Isn’t $500 million a lot of money?”) that it is “getting tough” with Wall Street. The fact is that Goldman Sachs’ unethical maneuvers paid off handsomely, and nothing has happened that will discourage it from finding loopholes in another set of regulations and making another killing while deceiving investors legally and, by the Bizarro World ethics of the investment world, “ethically.” You can read a perceptive analysis here. Continue reading →

Ethics Dunce: Florida House Rep. Janet Long

/ Jack Marshall / 6 Comments

Once again, an elected official is advocating the Bizarro World ethics principle that those with the greatest conflict of interest in a matter are the only ones who have standing to decide it.  Conflicts of interest create bias and interfere with objectivity. They are to be avoided whenever possible. How then does someone like Florida House of Representatives Member Janet Long, a Democrat from Pinellas County, while debating the controversial Florida law requiring women seeking an abortion to first have an ultrasound procedure, justify demanding that male legislators “stand down if you don’t have ovaries”? Continue reading →

Goldman Sachs Ethics: An Easy Call

/ Jack Marshall / 5 Comments

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 →

The Ethics of Unethical Ethics Teachers

/ Jack Marshall / 5 Comments

An essay by lawyers Joel Cohen and Katherine A. Helm begins with this story:

“Noted ethics philosopher and Nobel Laureate Bertrand Russell once was questioned by the Harvard Board of Governors about having an extramarital affair with a student. When faced with the hypocrisy of being an ethics professor engaged in immoral conduct, Russell argued his private affairs had nothing to do with his professional duties. “But you are a Professor of Ethics!” maintained one of the board members. “I was [also] a Professor of Geometry at Cambridge,” Russell rejoined, but “they never asked me why I was not a triangle.”‘

The authors use the anecdote to explore the issue of whether proven ethics miscreants like Eliot Spitzer, Rod Blagojevich and disbarred class action lawyer William Lerach ought to be lecturing, speaking, or otherwise being listened to in regard to their opinions and advice on ethics. After all, acting teachers are often indifferent actors, and the best baseball managers weren’t much as players. Why should ethics be any different?  Continue reading →