Ever wonder why the banking sector continues to operate as it always has?

Here’s a possible answer: According to a report on Corporate Governance by Professor Emma Coleman Jordan of the Georgetown University Law Center (Public Directors Are Necessary to Restore Trust and Accountability at Companies Rescued by the U.S. Government) one simple issue might help to explain why change has been so elusive at the bailed out banks: Their people.

Jordan notes that the folks who run the major banks today — the senior executives, directors, managers, etc. — are essentially the same exact folks who ran them (into the ground) 5 and 10 years ago:

“The prospects for a robust prudently guided financial sector have been substantially clouded by the fact that the both the corporate governance structure and the executive leadership of the financial sector remain largely unchanged—92% of the management and directors of the top 17 recipients of TARP funds are still in office.”

You read that correctly — 92% of the TARP recipients’ senior management remains essentially unchanged post-crisis . . .

Hat tip HG

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Sources:
A Fair Deal for Taxpayer Investments
Emma Coleman Jordan
Harvard Law School Program on Corporate Governance, September 24, 2009

http://blogs.law.harvard.edu/corpgov/2009/09/24/a-fair-deal-for-taxpayer-investments/

A Fair Deal for Taxpayer Investments: Public Directors Are Necessary to Restore Trust and Accountability at Companies Rescued by the U.S. Government
Emma Coleman Jordan
American Progress, September 16, 2009

http://www.americanprogress.org/issues/2009/09/public_directorships.html

Category: Bailouts, Corporate Management

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

16 Responses to “Banking Sector Remains (literally) Unchanged”

  1. Mannwich says:

    Well, wasn’t that really the main point of all the bailouts, freezing the status quo for the world’s elite?

  2. Lugnut says:

    Yes, well, that as rather the point, holding them accountable and punishing those responsible by shoveling billions of dollars onto their balance sheet. That’ll show em! Public confidence restored.

  3. Blurtman says:

    Jeepers, do you have to be a Harvard or Georgetown perfessor to reach that conclusion?

  4. for the same Reason these Firms didn’t go through the BK-ringer..

    turn over the Staff, you expose, what you’re hiding, to a new set eyes (not all of whom can be, assuredly, thought of as ‘paid-for’)

  5. Marcus Aurelius says:

    Why would they change? Is there any stimulus whatsoever for a change (I use ‘stimulus’ in the biological/political sense)?

    — We have massive corruption and collusion in all 3 constitutional branches of government;

    — a new, extra-constitutional pseudo-governmental entity (I’ll use ‘corporatist’ as a name, but it’s more than simple corporatism) that, being extra-constitutional, is not governed by any law, process, check and/or balance, and which, by virtue of being the most powerful of all governmental entities, is not subject to investigation, prosecution, or punishment under existing law;

    – Federal, state, and local law enforcement agencies and agents that are economically driven to support the power structure — both actively and by passivity;

    – a new Praetorian Guard comprised of ‘military contractors’ (read: mercenaries), not beholden to the chain of command, and acting to benefit the home office, as opposed to the citizenry;

    The criminals have not only invaded the national government to plunder the treasury and enrich themselves, they have realized that they can stay for as long as they please. The citizenry has been occupied by the invaders and enslaved without resistance.

    Change we can believe in. Or else.

  6. JustinTheSkeptic says:

    Next comes fascism. NO, we already have that…lol (or “lot” – lots of tears somewhere down the road).

  7. hgordon says:

    Clearly, the existing power structure has no motivation to make any changes. With respect to Marcus Aurelius’ comment, how much worst does this have to get before we get to a populist uprising with Bastille storming and guillotines ?

  8. Mannwich says:

    @hgordon: As long as the majority of people have ample access to food, shelter and circuses (and i-thingy’s), there will be no uprising.

  9. hgordon says:

    @mannwich – certainly, it is a stretch to predict bloodshed, but I wonder if such an uprising doesn’t take the form of Rush Limbaugh cheering on the charge that is led by Sarah Palin. As difficult as it is to imagine someone like Palin winning an election, it would be wrong to dismiss the possibility of a powerful populist-based “conservatism” groundswell. This is not outside the scope of US history.

  10. To extend upon Marcus Aurelius’ comment, why expect bankers (or anyone else, for that matter) to change? The only change you can control is yourself. With regard to banking, there are so many options for managing personal assets that there is no truly valid reason for doing business directly with a “bailout bank.”

    Expecting bankers to change is no different (and not any more intelligent) than expecting politicians to change. As long as bankers and politicians remain human, they will not change behavior, at least not in our life time.

    To paraphrase the legendary trader, Jesse Livermore, “the pockets change, the suckers change, the stocks change… but human nature never changes. “

  11. Through the Looking Glass says:

    I cant add anything to this except maybe to say, forget it he says it all…..Just dont ever believe a politician or political party will change things , they are just pieces on the plutocrats chessboard.

    http://www.youtube.com/watch?v=hYIC0eZYEtI

  12. TakBak04 says:

    BR…I know how busy you are…but as a buyer and reader of your book …Hope you will take out time to check this one out from Chris Hedges. It’s long…but I think that as you say you are an open minded fellow and love contrarian views along with some radical stuff …..this one is for you.

    It’s long…but well worth the watch about America/Economy/Media/Branding/Sports/Markets/Celebrity. ….. (be sure you listen to all after the Michael Jackson stuff…he goes back to that at the end. It’s really a Tour de Force…from Hedges who has much to say about where we’ve been, where we are and where we might be going if we don’t WAKE UP!

    Well it’s just an incredible watch whether one agrees or disagrees what he says is some really serious stuff…I hope you will take the time to watch it “BR” because when I bought your book and read it….I felt you might be a part to the great puzzle that Hedges so emphatically and passionately lays out about what faces all Americans…and how we got to this point. Really the whole thing is just incredible watch.
    —————–
    CHRIS HEDGES: “Empire of Illusion: The End of Literacy and the Triumph of Spectacle”

    http://www.democracynow.org/blog/2009/12/18/chris_hedges

  13. [...] This morning, I will visiting with Chris Jansing on MSNBC’s Morning Meeting. We will be discussing yesterday’s post on Banking Sector Remains (literally) Unchanged. [...]

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