Category Archives: Corporate governance

Young Owners of Low-Budget GM Cars Weren’t Worth Saving

Writer libbyliberal describes how the Obama Administration’s National Highway Traffic Safety Administration worked with GM for years to cover up the automaker’s ignition system defect that would lead to sudden power system failure. That fault is estimated to have caused at least 13 deaths and over 30 crashes. It’s also a textbook case of crapification.

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Delaware Chief Justice to Shareholders: Drop Dead

We’ve argued that the notion that companies are obligated to maximize shareholder value is a theory made up by economists and eagerly adopted by corporate executives, with little to no foundation in law. We received confirmation of our thesis in the form of a Columbia Law Review article by the chief justice in Delaware, Leo Strine, arguing that shareholder activism needs to be curbed. As if CEOs are really breaking a sweat over those pesky shareholders.

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These Charts Show What is Wrong With American Capitalism

For the last 30 years, neoliberals have fixated on a simple program: “Get government out of the way,” which meant reduce taxes and regulations. Business will invest more, which will produce a higher growth rate and greater prosperity for all. The belief was that unfettered capitalism could solve all ills.

That’s not how this children’s story is turning out.

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Murdoch’s Other Hacking Scandal: A Review of “Murdoch’s Pirates” by Neil Chenoweth

Back in the late 1980’s, Rupert Murdoch’s latest fiendish plan for world media domination (there’s a new one every decade or so) centred on pay TV. But as the 1990s rolled in, the media baron focused on a new world to conquer: crypto.

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“What Then Must We Do?” Gar Alperovitz at The New Economy Summit

By Lambert Strether of Corrente

Here’s something to listen to with your morning coffee; it’s a lecture on co-operatives, with Q&A following, by Gar Alperowitz at the New Economy Summit in Boone, NC, in April of this year. I like the title, because the agency in “What Then Must We Do” is explicit, in contrast (intentional or not) to [Anglophone usage of] Lenin’s famous “What Is To Be Done” (sez who?) where lack of agency signals the Bolshevik’s intent to tell people what was to be done. We know how that movie ended; there were a lot of movies that ended that way in the 20th Century. The video:

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Jamie Dimon, the Lance Armstrong of Finance

I’m sure some readers will protest that comparing Jamie Dimon to Lance Armstrong is unfair. After all, Dimon is better looking than Armstrong. But this post will demonstrate that the big reason that Armstong’s reputation has crashed while Dimon’s remains largely intact is first, that bank CEOs have a powerful and largely compliant messaging apparatus in the financial media and second, that we hold sports stars to much higher standards than titans of finance and commerce.

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Why the “Maximizing Shareholder Value” Theory of Corporate Governance is Bogus

One mantra you see regularly in the business and popular press goes something along the lines of “the CEO and board have a fiduciary duty to maximize shareholder value.”

That is untrue. Moreover, the widespread acceptance of that false notion has done considerable harm.

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NYU Administrators Create Student Debt Slaves to Subsidize Summer Homes, Ginormous Pensions

When union members demand decent pay levels and work conditions, they are charged with featherbedding and overmanning or the new neoliberal catchall, “demanding uncompetitive wages”. But when the upper crust loots institutions, the mainstream media is typically missing in action.

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Time to Put the Heat on the Fed and FDIC to Fix Lousy Governance at TBTF Banks

Adam Levitin makes a sensible recommendation in a new post:

…what’s at stake in the corporate governance of a too-big-to-fail bank like JPMorgan Chase is not just the share price, but also the public fisc. There is a strong federal regulatory interest in having good governance at too-big-to-fail banks because of our explicit (FDIC) and implicit (bailout) insurance of too-big-to-fail banks.

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Is Jamie Dimon Really Out of the Woods With Shareholder Thumbs Down on Splitting CEO/Chairman Roles? (Updated)

There’s a surprising degree of blogosphere acceptance of JP Morgan’s messaging on the shareholder vote today regarding whether to split the CEO and Chairman roles, that this result was a vote of confidence in his prowess as CEO. Huh?

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