Tag Archive for ‘Regulation’
As the Federal Reserve Bank of New York moved to beef up its oversight of Wall Street two years ago, the team charged with supervising the nation’s largest bank, JPMorgan Chase, was in turmoil. Fed examiners embedded at JPMorgan complained about being blocked from doing their jobs. In frustration, some requested transfers.
A special examiner hired – and fired – by the Federal Reserve Bank of New York recorded about 46 hours of meetings and conversations with her colleagues. Many of these events document key moments leading to her firing. But they also offer an intimate study of the New York Fed’s culture at a pivotal moment in its effort to become a more forceful financial supervisor.
Has anything changed in banking regulation since the crisis of 2008? Consider the case of MF Global Holdings Ltd., a New York-based securities firm that filed for bankruptcy protection on Oct. 31 after disclosing sizable exposure to derivatives and other investments related to billions of dollars in European sovereign debt. The firm was headed by Jon Corzine, a former CEO of Goldman Sachs who subsequently went into politics and was elected U.S. Senator and, later, Governor of New Jersey. In this video clip, “Daily Show” host Jon Stewart compares and contrasts the positions and behavior of Jon Corzine, the politician, with Jon Corzine, the CEO banker.
Is the claim that regulation kills jobs true? ProPublica asked experts, and most said that while there is relatively little scholarship on the issue, the evidence so far is that the overall effect on jobs is minimal. Regulations do destroy some jobs, but they also create others. Mostly, they just shift jobs within the economy.
The CEO of carpet maker Desso believes the “Cradle to Cradle” approach to manufacturing could change the design of the world, and not just in the carpeting industry. “It encourages consumers to buy more products,” he writes, “but to do so from innovative companies that have policies in place to recycle old products, turning waste into new products or into nutrients.”
A group of investment organizations with about $43 billion in assets under management has sent letters to 35 major companies represented on the board of the U.S. Chamber of Commerce, urging company managements “to evaluate their role and to assess the risks and benefits of Board membership.”
Many leading companies strive to follow best practices in corporate governance, demonstrating responsiveness to investors and protecting shareowner value in the process. Paradoxically – argues a leading socially responsible investment executive – some of these same companies often appear to leave their commitment to corporate governance at the doorstep when they serve on the board of the U.S. Chamber of Commerce.
When students return to campus in coming weeks, so will debate about the purpose of management education and the role of ethics. Columnist Gael O’Brien wonders whether current business leaders will support training new leaders in skills and competencies that support new models of business – or will it be simply business as usual?
A Conference Board survey finds that even though corporations lack the structural framework to enable proper director oversight of sustainability programs, they rarely consult outside expertise. At 89 percent of the companies surveyed, directors continue to rely on reports by senior executives for information on social and environmental initiatives.
The bill, which passed the Senate by a vote of 59-39, requires directors to win by majority vote in uncontested elections, gives the SEC authority to grant shareholders proxy access to nominate directors and gives shareholders the right to a nonbinding vote on executive pay. The measure must be reconciled with a House bill.