Pilant's Business Ethics

Business Ethics Blog

Tag: dodd-frank

Steven Mintz, the Ethics Sage Talks Occupy Wall Street, the 99%ers.

I consider the Ethics Sage to be a friend. His writing ranges from business ethics to workplace bullying to economic issues and of late he has written passionately about the death penalty.

In his lastest essay he describes the criticism of the Occupy Wall Street Movement and then responds by emphasizing the serious nature of the complaints presented by the protestors. I am using more than a third of his article and I do this because I don’t want to diminish the power of his message. Of course, you should real the full article if at possible. His heart is in this and I am pleased to consider him a colleague.

Steven Mintz, the Ethics Sage

If there is a class warfare that has developed in the U.S. it is because the selfish policies of these institutions caused the financial meltdown, economic recession, and massive loss of jobs – all through no fault of us who play by the rules. The unemployed didn’t cause the crisis. Sure, some people overspent and got too deeply in debt, but that was due in part to the belief fostered by the actions of these institutions that the good times would keep rolling along. Instead, the bubble burst and it was the average American that was left holding the bag.

The Republicans attack over-regulation in the form of Dodd-Frank and Sarbanes-Oxley that, they claim, has created an uncertainty and unwillingness to expand economically by the very companies being regulated. That may be so and there is no denying it is a problem. However, the Republicans need to look in the mirror of those being regulated to see the face of who created the need for more regulation.

Our free market capitalistic system is based on the notion that by acting out of self-interest, business will create a better economic climate for all Americans. Well, it is just not working out as intended by Adam Smith. According to a survey by salary.com, the average salary and benefits paid to the CEOs of the Standard & Poor’s top 500 companies in 2010 was $11.4 million. The average CEO earned 343 times more than typical workers.

Very little has been said this election year cycle about how much the financial crisis has cost the average American in lost wealth. Well, hold on to your chairs as you look at the data provided by The Pew Charitable Trust that covers the period between 2008 and 2009:

  • $100,000: Cost to the typical American family in combined losses from declining stock and home prices
  • $5,800: Average household income loss resulting from declining economic growth
  • $14,200: Average household loss in wealth caused by plunging real estate prices
  • $66,200: Average stock market losses for households from July 2008 to March 2009
  • $2,050: Average household cost to pay for TARP, the main government program to shore up the economy
Enhanced by Zemanta

5 reasons why banks hate [and fear] Elizabeth Warren (via Eideard)

5 reasons why banks hate [and fear] Elizabeth Warren

I’m sorry, Congressman, you’re small-minded, too! Daylife/Reuters Pictures used by permission Elizabeth Warren, it’s not you they hate. It’s what you represent. You want to be an honest cop when so many before you in Washington have looked the other way and pretended that the banking industry could police itself. I can’t think of a better reason why this presidential adviser shouldn’t be the new chief of an unfettered Consumer Financial Protectio … Read More

via Eideard

I couldn’t agree more. An honest broker is the last thing the large banks can stand. They want the status quo of unaccountability to continue forever. We’re just sheep to be sheared under current law. Even knowing what shenanigans the industry is up to is very difficult.

Let’s get Elizabeth Warren confirmed.

James Pilant

From around the web.

From the web site, leaf  – stitch – word. (An unusual endorsement. jp)


I’m really glad she won the November 2012 Senate race against Scott Brown.
And I’m really glad that Jimmy had the presence of mind to make a
contribution to her campaign and ask volunteers to install one of her
giant signs in our front yard. The sign came on a giant wooden stake
that, since mid-November, has been resting against the wall of our
garage, too tall to put in a trash barrel. Today I cut and drilled that
scrap to make a hanger for bike helmets on the garage wall.

From the web site, The Web of Debt Blog.


On July 1, interest rates will double for millions of students – from 3.4% to 6.8% – unless Congress acts; and the legislative fixes on the table are largely just compromises. Only one proposal promises real relief – Sen. Elizabeth Warren’s “Bank on Students Loan Fairness Act.” This bill has been dismissed out of hand as “shameless populist demagoguery” and “a cheap political gimmick,” but is it? Or could Warren’s outside-the-box bill represent the sort of game-changing thinking sorely needed to turn the economy around?

Warren and her co-sponsor John Tierney propose that students be allowed to borrow directly from the government at the same rate that banks get from the Federal Reserve — 0.75 percent.

From the web site, Politics USA.


Sen. Warren said, “Some people say that we can’t afford to help our kids
through school by keeping student loan interest rates low,” said
Senator Warren. “But right now, as I speak, the federal government
offers far lower interest rates on loans, every single day – they just
don’t do it for everyone. Right now, a big bank can get a loan through
the Federal Reserve discount window at a rate of about 0.75%. But this
summer a student who is trying to get a loan to go to college will pay
almost 7%. In other words, the federal government is going to charge
students interest rates that are nine times higher than the rates for
the biggest banks – the same banks that destroyed millions of jobs and
nearly broke this economy. That isn’t right. And that is why I’m
introducing legislation today to give students the same deal that we
give to the big banks.”

Enhanced by Zemanta

Powered by WordPress & Theme by Anders Norén