Wall Street Set For Best Two Years Ever, Thanks To Bailout.
I dunno, kids. That headline feels wrong, somehow. William Alden understates that something is amiss, “Critics note the disparity between banks’ earnings and the state of the real economy.” (Huffington Post) That’s the beauty of ethics. One need not be Aristotle nor the proud owner of an on-line kindergarten degree to know that something is not cricket. The observation of a moral violation starts in the gut and travels, quick like, up to the head, where the brain concludes that something is not rational, it’s not right.
Here’s a quick test. These are quotes from some guys after their firms received TARP money (Reported by Matt Apuzzo, AP)[i]:
Which statement(s) would inspire Mother Theresa to box someone’s ear?
1) “We’re not providing dollar-in, dollar-out tracking,” (Barry Koling, Sun Trust);
2) “We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,’” (Thomas Kelly, JP Morgan Chase);
3) “We’re choosing not to disclose that,” (Kevin Heine, Bank of NY Mellon)
If you chose all three, your Ethics-O-Meter is perfectly calibrated. If you had any other answer, please let me know. I’m utterly fascinated by the dark side…and Snookie.
“Sloshing around”. That’s how an NPR guest recently characterized the movement of excess cash in capital markets thanks to TARP (re: taxpayer) money. A quick ask- is your wallet wallowing in cash? Any sloshing going on as you and yours head into Christmas? Didn’t think so. Outrageous fortune has cast her charms upon the boys and girls of Wall Street and I’m now considerably more torqued than I was two years ago when the horribly euphemistic TARP (re: a gazillion dollar Wall Street welfare check) came into play.
On December 22, 2008, I wrote an open letter to Congress and Elizabeth Warren, the erstwhile head of the TARP oversight committee, such as it was. The letter had the tone of the Welcome Wagon lady who feels compelled to tell you that your children may not run around with poorly ironed clothes. It suggested that they take a page out of George Bailey’s book, “Now just a minute. Now, hold on, Mr. Potter”… before writing a morally and functionally uncollateralized checks to, shall we say, people who created troubled assets. (For those of you unfamiliar with esoteric cinema, George Bailey is the protagonist in “It’s A Wonderful Life”ii). In the letter, I suggest that we use an abacus, card reader or, maybe even one of those new fangled computers that Al Gore invented, to keep a tally of all those damned dollars. Once they leave the house, it’s a tricky thing to track them.
A friend-slash-constructive critic and political strategist Dan Casey suggested that only kooks and the highly esteemed write open letters. Given that I fall into the wrong category, I put the letter in a drawer. Silent no more, this rather rabid kook is airing her long brewing woes.
Open letter to US Congress and Elizabeth Warren:
As an ethicist and a taxpayer, I am baffled about the no-account status of the Wall Street bailout. I have refused to believe that honest government is a naïve notion and I aspire for ubiquitous transparency. Note that 25 years ago, many executives considered quality & technology peripheral to the business of business. Pollution and safety were fringe issues. The unimaginable has become commonplace. Yet, my fidelity to the principle of transparency in a capitalistic democracy is getting wobbly. (Ref- aforementioned hoodlum’s quotes.)
Please consider my proposal to help you track your, my, and our money. I propose that we utilize Wall Street’s technology platform as a template for tracking bailout dollars. No, I am NOT suggesting that Congress outsource IT to Wall Street. Wall Street technology is amazing. It is able to track staggering amounts money with stunning speed, down to a teensy, a fraction of a penny. Combined with the right processes and procedures, we could have a confidence that you is fulfill your stewardship responsibility to taxpayers and know the whereabouts of EVERY DOLLAR DONATED IN THE BAILOUT-all 750,000,000,00.This technology gives you the power to say, “No tracking? No bailout.” This is simple. The technology is available. Does Congress, do you, have political will to use it?
I expect you to affirm that accountability trumps politics. Please take a George Bailey, “It’s A Wonderful Life” moment under advisement: “Now just a minute. Now, hold on, Mr. Potter”…
Sigh. The innocence of youth and the sweet belief in the right and the good.






