Corrupt Bank Leaders Call Out for Ethics and Accountability

Update 7/7/2017 2:48 Eastern: Governanceprinciples.com website is down.  It appears that the website lasted as long as the members commitment to ethics and accountability.

See:  http://www.governanceprinciples.org has expired and is pending renewal or deletion.
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By K.K. MacKinstry/LendingLies
Editor’s Note:  Jamie Dimon of JPMorgan Chase demanding that banks act ethically and with accountability is the equivalent of El Chapo Guzman advocating for drug education programs and stronger drug laws. 
Big banks, Big media, Big pharma, Big chemical/oil, and Big Gov are well aware that stakeholders are beyond furious.  If Mr. Dimon is concerned about acting ethically, I suggest homeowners victimized by JPMorgan Chase organize and present him with a letter demanding an explanation for knowingly foreclosing on loans that were never transferred from WaMu. 

These “esteemed” CEOs may pay lip service to transparency, long-term value creation, and ethical policies but the corporations they represent are the antithesis of ethical behavior.  This is nothing but a public relations stunt designed to create the appearance of giving a damn while the unethical, fraudulent and illegal practices continue.  The Germans rioting in Hamburg at the G20 Summit are doing so because western governments (globalist corporations) are no longer listening to their citizens, but catering to corporate interests.

By Richard Bowen/CitiBank Whistleblower
And it’s about time…principles matter; in business and in our personal lives. For some time you’ve heard me rant on the lack of principles exhibited by many companies and the TBTF banks that endangered our economy in 2008; the lack of principles that eroded our financial systems and the fraud that resulted because of the lack of ethics and accompanying greed. Companies pay lip service to governance, principles and ethics and often pay them no heed in their relentless pursuit of profit.

Principles matter, yet they cannot be just words on paper, mandated from the top and not followed by a company’s leaders which is what occurred with the ethics policies that Enron, Citigroup, Wells Fargo and countless others proclaimed they had. 

So it was with some surprise that I read about a group of thirteen or so well known CEO’s and heads of investment firms which had teamed up last year to develop “common sense standards for corporate governance.” The venture, which was kept quiet for some time included JP Morgan Chase CEO Jamie Dimon, Berkshire Hathaway CEO Warren Buffet, General Motors CEO Mary Barra, and the CEO’s of Verizon, General Electric, Vanguard, Blackrock, and others.

It may be just a little and too late, still, it’s worth paying attention to see what if any changes this group and their initiative can make on the present sad state of corporate values, shareholder and director policies and overall corporate governance. In an open letter and nine-page document on the group’s website they state, “Corporate governance in recent years has often been an area of intense debate among investors, corporate leaders and other stakeholders. Yet, too often, that debate has generated more heat than light.” 

Among other items, the group is behind “clawback provisions,” board diversity, and fair director compensation models designed to keep director goals more in line with those of company investors.

Several governance experts and institutional investors have applauded the effort as a “call to action for U.S. companies, large and small.” Ken Daly, CEO, National Association of Corporate Directors, is one of them, and says, “We are pleased to see that the principles supported by this esteemed group promote the same concepts of transparency, long-term value creation, and independent board leadership that NACD champions. … Our robust portfolio of governance resources—developed for directors, by directors—can assist boards in implementing these practices.”

Yet, some believe as do I that this group, which wields tremendous power, can go even further on several issues that have proved contentious to effective governance, such as splitting the CEO’s and Chairman’s roles, proxy access and director retirement age. I was glad to see the group was by and large not in favor of dual-class voting (in which people with a privileged category of shares get more say than the average investor). The group said, “If a company has dual-class voting, which sometimes is intended to protect the company from short-term behavior, the company should consider having specific sunset provisions based upon time or a triggering event, which eliminate dual-class voting.”

One recommendation which obviously met with my approval was, “that the board of a public company should be able to meet with any employees outside of the presence of the chief executive to get an unvarnished view of the way the company is being run.”

 

In their open letter, they state:

The health of America’s public corporations and financial markets — and public trust in both — is critical to economic growth and a better financial future for American workers, retirees and investors.

Millions of American families depend on these companies for work — our 5,000 public companies account for a third of the nation’s private sector jobs.

Our future depends on these companies being managed effectively for long-term prosperity, which is why the governance of American companies is so important to every American. Corporate governance in recent years has often been an area of intense debate among investors, corporate leaders and other stakeholders

We represent some of America’s largest corporations, as well as investment managers, that, as fiduciaries, represent millions of individual savers and pension beneficiaries.

This diverse group certainly holds varied opinions on corporate governance. But we share the view that constructive dialogue requires finding common ground — a starting point to foster the economic growth that benefits shareholders, employees and the economy as a whole. To that end, we have worked to find commonsense principles.

We offer these principles, which can be found at http://www.governanceprinciples.org, in the hope that they will promote further conversation on corporate governance.

While some of the companies represented have been humbled by their own ethical lapses resulting in high-profile whistleblowing (e.g., Alayne Fleishmann with Chase mortgage securitizations and Courtland Kelley with GM safety issues), the group nonetheless does have the capacity to implement much more on the issues of ethics and sound corporate governance, and I still give them credit and respect for this beginning. If other corporate leaders stood their ground and actually followed the high road and embraced it in their culture, we would all benefit.

5 Responses

  1. Pleeeeeease. Really dimon on ethics. Thats the pot calling the kettle black i hope people continue to take their money elsewhere besides the big banks. Wouldnt itbe a miracle if they lost enough business they would have to file bankruptcy like so many of us had to do to protect what little we have left after the banks blatantly screwd us.

  2. Since 2008 it’s just been one lie after another… beginning with… “if you don’t bail us out we’re gonna kill ourselves!”… and the infamous “sure, we can modify your loan”… and let’s not forget… “yep, we own that loan… see here??? we’ve got an impossible to exist Assignment of Mortgage to prove it”… they’re liars… it’s what they are… it’s what they do. They think we don’t get it… that we don’t know… they may be rich… but they’re rich idiots.

  3. Our assignment of mortgage was done by a guy with a signature that looks like zero !

  4. Jamie Dimon, the criminal who should be in the jail cell next to Trump, Hillary, Mnuchin, Madoff and so on says banks need to act ethically. OK dipshit — where is the money for rippng me off by saying you would modify my loan. OH yeah you dropped the company line of credit I was with in 2009 also. Where are all of the people you screwed over while you and your underlings made and continue to make millions. You had to be in the pockets of Eric Holder and Obama or you would be in jail as well as all of the other Wall Street money launderers. Go back under your rock.

  5. The banks are so ridiculous. They try to deflect from THEIR bad behavior by lecturing others on ethics? C’Mon!! I have witnessed first hand, in my own ongoing foreclosure case, the bank (Plaintiff’s) counsel, calling me a “Spoiler” and that I have lost nothing and should get nothing because I did not sign the note and am only the “homeowner” now “land owner” due to a tsunami, regardless of the blatant fraud they have committed. They have convinced themselves that, because they lie, cheat, forge documents and somehow “acquire” fake documents for a defaulted loan that was allegedly “sold” to a securitized trust that they are somehow more deserving of the land than the property owner who paid tens of thousands of dollars (in my case hundreds of thousands of dollars) for and had to put up with years of abuse by the bank/servicer all the while begging and pleading for them to just work with me. They have no idea what we homeowners have lost or what we have done to try and work with the crooked bank/servicers. Crooked, crooked, crooked, that is all I can say. They wouldn’t know honesty or ethical behavior if it slapped them upside the head. They truly are all the same.

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