Emerson once observed that “Some circumstantial evidence is very strong, as when you find a trout in the milk.” Some details in reporting are a tad too crucial to leave out, as when the author of an opinion piece is penning the missive from a federal prison because of two little character defects called fraud and obstruction of justice. This is what occurred in Time’s online edition, which ran a piece by Conrad Black, known widely as Lord Black of Crossharbour, formerly of the Bridle Path in Toronto, Palm Beach, and London, but more recently as inmate number 18330-424 of the Coleman Correction Facility in Florida, and a regular subject of commentary on these pages.
It somewhat boggles the imagination that mainstream journalism, and one of its most storied institutions at that, has to turn to miscreants and fraudsters to interpret the world of politics to its readers. That spinning sound you hear is Henry Luce turning over in his grave. Repeatedly. Fortunately, this is a detail that matters to some thoughtful readers, like the intellectually versatile and always curious Lance Knobel, who is also troubled by the sudden plunge in the magazine’s byline standards. His to-the-point admonition of Time for its selective memory is available here.
He was a man of principle, but not to the extent of forgetting that others have principles too. He was a politician, but always showed he understood life outside Washington and among those who still have to struggle to get by. And when he grabbed the ball in politics, just as he did when he was the quarterback for the Buffalo Bills, he did it with style, grace and civility.
Former congressman and one-time Republican vice presidential candidate, Jack Kemp, died today at 73 from cancer. He was the same age my grandfather was when he was taken by the disease. Jack Kemp had a distinctive voice and way of making a point. Few ever claimed to have been offended. But he could still make his point. And he was, in later life outside politics, a fierce advocate for the power and potential of the individual. Societies are great. But so much in life is advanced, whether by innovation, invention or standing up for some cause, by one individual at a time.
His death comes at a time that nearly marks the first-year anniversary of the passing of another tireless booster of the common man, and of all things Buffalo: Tim Russert. What made these fellows so memorable is that they were unique. They had a distinct personality. They always seemed to have a sparkle in their eyes. And they understood that there is something precious about every individual. They connected with us in a personal way, not just as part of a huge, faceless society.
These are the kind of people we miss so much, and why we still look desperately for their successors to lead, inspire and illuminate us again.
Well done, Jack.
Too many posts to handle? If you missed out on a great post from last month, here’s a quick digest of the top posts that you may want to check out:
- A Wish for Easter
Easter is a time that brings with it the miracle of spring and the re-birth of the land and the trees, the return of the songbirds and the reappearance of the tulips and spring blossoms. For Christians, it marks a celebration of the life, death and resurrection of Jesus Christ, and of the lessons he taught his flock about peace, understanding, love and kindness towards others, and, especially, toward the least fortunate.
- Bank of America and the Inexorable Laws of Physics
The decision of a majority of shareholders at Bank of America to oppose the board and separate the positions of CEO and chair, appointing an independent director to the latter position, is one for the books. This is the biggest institution in the history of business where shareholders have brought about such a dramatic change in corporate governance practices and actually removed a top title from a sitting CEO.
- Did Citigroup’s Shareholders Have a Case of Flu, Too?
It is hard to imagine how the bank could have done any worse if Bernie Madoff had been on its board.There was sound and fury, but in the end it appeared to signify nothing. At Citigroup’s annual meeting last week, not a single shareholder proposal for reform was adopted. Every board/management nominee was returned. Over the past year, the company’s losses soared to $28 billion and its market capitalization has dwindled from $260 billion at the beginning of 2007 to $16 billion now.
- Is the SEC Missing the Corporate Governance Forest?
The agency that bills itself as “the investor’s advocate” needs to go well beyond asking boards to chime in on what’s behind their structure. It needs to focus on the bigger picture of the role of the board in the worst financial crisis since the 1930s and the persistent folly of directors who do not direct. That, in our view, is the real definition of systemic risk.
- Outrage of the Week: Retreat Behind the Curtains
Does FASB’s change in accounting standards improve investor confidence or detract from it? Is it a move consistent with a renewed commitment to transparency, or is it that famous political game of dressing up disaster like putting lipstick on a pig?If you looked at all the causes of the great recession of 2008-2009 -which would doubtless include unbridled greed, an unconscionable obliviousness to risk, complacent regulators and sleeping boards- lack of transparency would figure high on the list.
- Remembering Vimy
Posted on Thursday, April 9th, 2009 in Canada – Comments: (0)
The day a nation became transformed by its heroes.Precisely 90 years ago today in a field in France, the four divisions of the Canadian Corps began their legendary assault on German forces in one of the pivotal clashes of the First World War -the battle of Vimy Ridge.My grandfather and several great uncles were there in the thick of it.
- The Titanic of Ironies
The calamity of the ship which was thought too big to sink did not capsize the company that owned it. But the White Star Line, which had roamed the seas through wars, depressions and revolutions since the mid-1800s, was unable to survive the greed, hubris and deceit of one man. It is an experience that carries some valuable lessons for today’s financial empires and Wall Street titans as well.
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The decision of a majority of shareholders at Bank of America to oppose the board and separate the positions of CEO and chair, appointing an independent director to the latter position, is one for the books. This is the biggest institution in the history of business where shareholders have brought about such a dramatic change in corporate governance practices and actually removed a top title from a sitting CEO.
The move from yesterday’s annual general meeting comes in answer to the staggering losses and a shocking stock value decline that have roiled the company in recent months, as well as in response to a number of unresolved questions regarding the Merrill Lynch acquisition and who in the B of A boardroom knew what and when. It is the investors’ version of Newton’s third law of physics, (as modified by Finlay ON Governance) which holds that when shareholders are pushed too far, there can sometimes be an equal and opposite reaction.
Whether the replacement of Ken Lewis by new board chair Dr. Walter Massey will make a difference in a way that empowers independent thinking in the bank’s boardroom, and improves management performance through enhanced accountability, is yet to be seen. Some might think a physicist to be an unlikely candidate for such a key position in a bank. But given recent events on Wall Street and in the credit markets where there seemed to be little grasp of the laws of gravity, but rather, a misplaced view that debt and risk could expand into infinity -taking earnings and share prices along for the ride- perhaps Dr. Massey could give his board colleagues some useful lectures on Sir Isaac’s other discoveries a few centuries ago. So far, not even the biggest names in banking have managed to escape their universal application.
It is hard to imagine how the bank could have done any worse if Bernie Madoff had been on its board.
There was sound and fury, but in the end it appeared to signify nothing. At Citigroup’s annual meeting last week, not a single shareholder proposal for reform was adopted. Every board/management nominee was returned. Over the past year, the company’s losses soared to $28 billion and its market capitalization has dwindled from $260 billion at the beginning of 2007 to $16 billion now. With its shares having fallen below the one-dollar range and still languishing around $3.00, many see Citigroup as basically a penny stock. Since the last AGM, the bank has become a ward of the state and could not have survived without the $45 billion it received in public funds. This is the shape of once-mighty Citigroup today. It is hard to imagine how the bank could have done any worse if Bernie Madoff had been on its board all this time.
Yet all of this was not enough to galvanize Citigroup’s institutional investors into making any changes whatever -or seeing that a new approach to corporate governance is desperately needed at this institution, beginning with the ouster of Richard Parsons, the long-serving director who became board chairman earlier this year.
If a company’s management and board can preside over the obliteration of shareholder value while losing billions, and the outcome at the annual meeting is the same as if it had the best year ever, you have to wonder about the health of shareholder democracy in America. Let’s hope that Citigroup’s investor flu does not spread.
Shareholders everywhere, dawn your masks!
