Will Congress Save The Banks By Dismissing The Ownership Rights Of Homeowners? – Senior Editor, John Carney Says They Will

I’m cynical. You can’t have much to do with the field of business ethics and be anything else. I was outraged for days after Congress passed the act that would have legalized much of the mortgage industry’s wrong doing. When Obama vetoed it, I had a rare moment of gratitude. But I’m still cynical always waiting for the knife in the back, a sell out, a deal behind close doors … There is always someone waiting to make a deal no matter what crawling excreted maggot they have to deal with. Always someone.

But this guy is more cynical than I am. And he might be right. John Carney in an article entitled, “Sorry Folks, The Put-Back Apocalypse Ain’t Gonna Happen,” says that Congress will not let Bank of American get in real trouble.

Here’s an excerpt from this article –

But Bank of America’s recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen.

Why not?

Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when there’s an easy fix available that won’t cost taxpayers a dime.

Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act.

He may be right. I’ll bet the other way. Fifty state Attorney Generals and countless other officials are on the prowl right now and bad stuff is coming out every minute. The Public is in a bad mood. Saving the banks under these circumstances could delegitimize our system of government in a way we haven’t seen before. It is true that people have virtually no faith in Congress and only somewhat more in the President. But that is different from active hate. It’s different because the government will essentially be putting a sign on its front lawn, “You have a dispute with a bank and you’re right – WRONG, bank wins. You’re less than nothing. Go home and suck it up.”

I don’t think that’s going to go over well. Further, I don’t think it will go away in time for 2012.

We’re about to see how much power public opinion has. John Carney says it does not have the power to stop Congress from saving the bank by abrogating their legal rights. Carney hopes he’s wrong about this. From his work, it is easy to see that he is no defender of the banking industry and, is probably, one of those people I speak of as a ally in the “good fight.” But I hope he is wrong too.

The possibilities of the results of such an action by the federal government offer only two possibilities, acceptance by the public or another kind of response. I am not happy with my speculations on what that response might be.

James Pilant

Sharif Khan – Psychology Of The Hero Soul

One of the wonderful things about having a blog is that you get to say nice things about people. One of my friends on Facebook is Sharif Khan. He is a motivational speaker, life coach: you know that kind of thing.

He has a new book out called “Psychology of the Hero Soul.”

Here’s the blurb from the web site –

“Sharif’s wider vision for the concept of ‘Hero’ is enormous in scope and powerful in terms of its impact. A fascinating read” —Les Brown, author of Live Your Dreams

“The Hero Soul will leave you inspired by the triumph of the human soul and show you how to harness the forces within you to live your highest life.” —Debbie Ford, author of #1 NY Times Bestseller, The Dark Side of the Light Chasers

“An excellent book that will help you discover the hero within you” —Robin Sharma, author of the #1 National Bestseller, The Monk Who Sold his Ferrari

The book is available on Amazon.com.

I know many, many people enjoy motivational works and this is right on that line. So, give it your kind consideration.

James Pilant

A Book Of Fiction That Explains Money Laundering

Jesse Kornbluth reviews John le Carre’s new novel, Our Kind of Traitor.

Kornbluth explains that le Carre tells an exciting story but he is also explaining how the world works. Many of the great progressive authors of the tens and twenties put their toughest writing into novels, for instance, Upton Sinclair’s The Jungle. He suspects that le Carre is writing in this tradition.

Here’s a quote from Kornbluth’s review.

Of all of le Carré’s novels, this is the one that makes me feel like a child. I mean, I know we’re all under surveillance now. Photographed often. Every keystroke, every e-mail, every Tweet saved — illegally, but saved. At any moment, the President can declare an American citizen an enemy combatant, a threat to the security of the Republic, and without judicial review or formal charge, he can order that American to be killed. But although I know all that, I hadn’t quite realized that when large amounts of money are involved, none of the old words — honor, truth, empathy — matter at all.

Here’s the trailer for the book(as if it were a movie).

Here’s John le Carre, himself, reading a selection from the book –

I’m a big fan of le Carre. I hope you are too. I have no doubt that the book is worth your time. Le Carre is insightful and clever – good writing.

James Pilant

Just For Fun – My cat, Precious, in her “root beer” condominium .

Tony Curtis Dies At The Age Of Eighty-five

Watch him eat up the screen in this scene from Some Like It Hot with Jack Lemmon and Marilyn Monroe.

Of all the people I could wish would never grow old, it’s the people that made us laugh.

James Pilant

From Australia, via Facebook: The raw impact of workplace bullying (via Minding the Workplace)

David Yamada blogs regularly on the subject of workplace bullying (among other issues). I very much respect his work and this piece is particularly eloquent and I recommend it to your attention.

I would like to praise the article but the power of the article and its raw emotional power is beyond my poor powers of description. You should just read.

James Pilant

Beyond Workplace Bullying Australia is one of the many Facebook (FB) pages that have formed in response to workplace bullying (more links here). A few days ago, I began noticing a series of short, wise, and plaintive posts from that page, obviously written by one person. The honesty, emotional intelligence, and pain expressed in these posts struck me as a form of raw testimony about the destructiveness of workplace bullying and just how much work … Read More

via Minding the Workplace

Optimism Leads to Delusions? (via Sonia Jaspal’s RiskBoard)

For around 400 years, the Western mind has struggled attempting to solve problems by logic using facts. It has not caught on. We still read horoscopes and to my continued astonishment often believe that if we thing hard enough “positively,” it will be so.
When we make decisions, the facts and an accurate assessment are our best allies. But in the United States, there is a perception that only positive, optimistic, emotionally intelligent people are the ones to be emulated.
It’s all nonsense. Read the article, it’s somewhat in line with what I am saying. I will elaborate further in a later article.

James Pilant

Since birth, the mantra taught to us about life is optimists do better in life as they think positive, are surrounded with positive people and generate positive energy. The example of the glass filled with some water typifies our thinking. Here are three examples of the statements people make and the general opinion formed by the public regarding the statements. First person Statement: The glass is half full. Opinion: Give the guy an immediate pa … Read More

via Sonia Jaspal's RiskBoard

I’m Back

I’m back. I’ve had the flu and this has been followed by bronchitis. I have a prescription for antibiotics but thus far my insurance doesn’t want to pay for that particular one, so we’ll see what happens.

I deeply appreciated the “get well” messages from you. It’s good to be appreciated.

James Pilant

Police Academy (1984)

A little off the path of business ethics. The film, Police Academy, is now 26 years old. I have always enjoyed the theme which they play over the end credits. I would like to note that Leslie Easterbrook who played Sergeant Debbie Callahan in all seven films said that she thought that police would be angry (and she’d get lots of tickets), but police loved the film. It does seem to be a perennial favorite with law enforcement around the world having been a very successful film in places like Spain and Scandinavia.

While many of you will like and remember the closing music, probably many more of you remember the actual theme, and so I include the POLICE ACADEMY Soundtrack Score Suite. Have fun remembering and if you are too young, take a look back at something from the 1980’s that won’t scare you.

Sunday – All Day Dungeons And Dragons Game

I went up two levels from 8th to 10th and led a 700 man recon force in a successful defensive battle. Be back posting tomorrow. jp

My son’s cat marched up and down his keyboard [it likes to hear the beeps] and totally crashed his system. It took me close to three hours to reload his programming, so it wasn’t all fun.