The Magazine of Corporate Responsibility

Tag Archive for ‘Securities and Exchange Commission’

Why No Financial Crisis Prosecutions? ‘It’s Just too Hard’

Years after the financial crisis, there have still been no prosecutions of top executives at the major players in the financial crisis. Why’s that? Well, according to a now-departed Justice Department official who used to be in charge of investigating such matters, the Justice Department has decided that holding top Wall Street executives criminally accountable is too difficult a task.

Crony Capitalism? Hank Paulson’s Extraordinary Meeting

A new report by Bloomberg News suggests that in July 2008, then-Secretary of the Treasury Hank Paulson met with “a dozen or so hedge-fund managers and other Wall Street executives” to discuss a possible scenario for placing mortgage enterprises Fannie Mae and Freddie Mac into “conservatorship.” Pulitzer Prize-winner Jesse Eisinger says Paulson’s meeting with his former Wall Street peers draws “a picture of a Treasury Secretary who took care of his buddies while allowing the system to blow up.”

Why a Federal Judge Trashed the SEC’s Settlement With Citigroup

A federal judge in Manhattan rejected a proposed settlement between Citigroup and the U.S. Securities and Exchange Commission over a failed security that the bank sold to investors. “If the allegations of the Complaint are true, this is a very good deal for Citigroup,” said U.S. District Judge Jed Rakoff as he refused to sign off on the $285 million proposed settlement agreement.

Boards Respond to Stakeholder Concerns

The economic crisis, increased rules and regulations, and heightened scrutiny of boards’ roles have “corporate directors feeling pressure to be more effective in the boardroom,” according to an annual survey of directors of large companies by PricewaterhouseCoopers. Key concerns include executive compensation, risk management, strategy, succession planning, information technology security and fraud.

Say on Pay: Identifying Investor Concerns

Advisory shareowner votes on executive compensation were the big story of proxy season 2011, the inaugural year for “say on pay” at most U.S. public companies. In the first half of the year, shareholders voted against proposals at some 37 companies. The Council of Institutional Investors, a leading advocate for say on pay, offers its analysis of the “no” votes and what they might say about current executive compensation practices.

What’s Happened to the Big Players in the Financial Crisis?

Widespread demonstrations in support of Occupy Wall Street have put the financial crisis back into the national spotlight lately. So here’s a quick refresher on what’s happened to some of the main players, whose behavior, whether merely reckless or downright deliberate, helped cause or worsen the meltdown.

Fulfilling the Promise of ‘Citizens United’

The authors of a new research paper say the Supreme Court’s 2010 Citizens United decision to permit corporations to spend unlimited sums to influence federal elections was premised on two yet-unfulfilled promises: Corporations would disclose their expenditures, and shareholders would be able to police such spending. Action by the SEC to require disclosure, they argue, might now “prove to be a favor” to businesses – and actually increase corporate valuations.

Financial Considerations Often Trounce Ethics in NCAA Sports

Violations and cover-ups in college athletics are beginning to rival the headlines for investigations of corporate malfeasance. Columnist Gael O’Brien says that at the heart of both types of investigations is the question of how leadership perceives and executes its role in creating a culture — and what that culture says about how things are actually done in an organization.

Women in the Boardroom: Should the U.S. Have Quotas?

Columnist Gael O’Brien says the U.S. has failed to show leadership in gender diversity on corporate boards, raising questions about what it can learn from other countries that have imposed quotas for women directors. While quotas can stir up discomfort, she writes, there’s a “complacency, even smugness” about boardroom diversity in the U.S. that argues in favor of requiring companies to take action.

11 Reasons Why We Need the Shareholder Protection Act

The Shareholder Protection Act, introduced today in the U.S. Congress, addresses governance problems left in the wake of the Supreme Court’s 2010 decision in Citizens United, which enables corporations to spend an unlimited amount of money on political advertising. The bill is modeled on the U.K. Companies Act, which requires prior shareholder approval of corporate political donations.