Aaron Swartz is Dead

 

 

Aaron Swartz at a Boston Wiki Meetup
Aaron Swartz at a Boston Wiki Meetup (Photo credit: Wikipedia)

 

Aaron Swartz is Dead

 

Aaron Swartz suicide: Prosecutors have too much power to charge and intimidate people for their crimes. – Slate Magazine

 

The underlying point Boyd is making, I think, is that the government doesn’t understand hackers and isn’t good at distinguishing between miscreant vigilantes like Swartz who are trying to free information systems and profit-driven or diabolical hackers who are trying to bring down those systems. That’s when an expansive law like the Computer Fraud and Abuse Act becomes dangerous. Prosecutors persuaded of their own righteousness, and woodenly equating downloading a deliberately unprotected database with stealing, lose all sense of proportion and bring in the heavy artillery when what’s in order is a far more mild penalty.

I’d like to tell you that the prosecutorial overreach that took place in Swartz’s case rarely happens. But that’s not true. There are many principled prosecutors who only bring charges they believe they can prove beyond a reasonable doubt. But there are also some who bring any charge they can think of to induce a defendant who may be guilty of a minor crime to plead guilty to a major one. These cases usually are hard to call attention to: They’re not about innocence, easy and pure. They’re about the muddier concept of proportionality. If any good at all can come from Swartz’s unspeakably sorrowful death, maybe it will be how this case makes prosecutors—and the rest of us—think about the space between guilt and innocence.

 

Aaron Swartz suicide: Prosecutors have too much power to charge and intimidate people for their crimes. – Slate Magazine

There are some real villains here. The federal prosecutor, Carmen M. Ortiz and, of course, MIT.

I’m disgusted by the government’s and MIT’s actions in the case. There is nothing that Swartz did that was worthy of a day in prison much less 35 years of prison time. MIT did everything they could to actively push the case while giving the public the impression that they weren’t. Nice try, but the simple fact is, that without MIT’s heavy cooperation, the government would have had great difficulty making a case at all.

A few days ago, the government decided not to prosecute HSBC, a bank, that laundered nine billion dollars of money for drug cartels but they were pursuing a case against a man who “stole” documents that should have been accessible to the public for free, a man who sought no monetary  profit at all.

James Pilant

I find these remarks by Lawrence Lessig to be dead on point:

Here is where we need a better sense of justice, and shame. For the outrageousness in this story is not just Aaron. It is also the absurdity of the prosecutor’s behavior. From the beginning, the government worked as hard as it could to characterize what Aaron did in the most extreme and absurd way. The “property” Aaron had “stolen,” we were told, was worth “millions of dollars” — with the hint, and then the suggestion, that his aim must have been to profit from his crime. But anyone who says that there is money to be made in a stash of ACADEMIC ARTICLES is either an idiot or a liar. It was clear what this was not, yet our government continued to push as if it had caught the 9/11 terrorists red-handed.

Aaron had literally done nothing in his life “to make money.” He was fortunate Reddit turned out as it did, but from his work building the RSS standard, to his work architecting Creative Commons, to his work liberating public records, to his work building a free public library, to his work supporting Change Congress/FixCongressFirst/Rootstrikers, and then Demand Progress, Aaron was always and only working for (at least his conception of) the public good. He was brilliant, and funny. A kid genius. A soul, a conscience, the source of a question I have asked myself a million times: What would Aaron think? That person is gone today, driven to the edge by what a decent society would only call bullying. I get wrong. But I also get proportionality. And if you don’t get both, you don’t deserve to have the power of the United States government behind you.

For remember, we live in a world where the architects of the financial crisis regularly dine at the White House — and where even those brought to “justice” never even have to admit any wrongdoing, let alone be labeled “felons.”

 

From around the web –

From the web site, Shikhar Tech Labs:

This is the most shocking news for the Computer and Internet industries, a deafening blow for all those campaigners who demand internet freedom and for technology enthusiasts in general. Aaron Swartz is dead. Worst still is the fact that he has committed suicide. As the web mourns the demise of a computer prodigy whose body of work had very few parallels, the injustice done to him by the US prosecution and the MIT is very visible and very disheartening, and that’s putting it mildly.

Aaron was facing criminal charges for stealing more than 4 million articles from JSTOR, an online archive and journal distribution service. And if found guilty he faced 35 years in prison and a $1 million fine. But then he was also the face of the struggle against US laws of SOPA and PIPA as well as other government imposed sanctions that threatened to restrict internet freedom and which have been opposed by all major internet organizations including Google and Wikipedia.

A lot of people close to Aaron smelled foul play on the part of the US prosecution and the MIT because even JSTOR decided not to press charges against Aaron.

From the web site, Inundated, Things Matter Only When It Hits Hard:

The Guardian quoted the statement given by Aaron’s family, “Aaron’s death in not simply a personal tragedy. It is the product of a criminal justice system rife with intimidation and prosecutorial overreach.”

As Aaron said, ” Information is power. But like all power, there are those who want to keep it for themselves.” It is really painful to see someone brilliant – in fact, an enfant terrible going by what Aaron had done in a span of handful years – heeding to Plato’s injunction, “The punishment suffered by the wise who refuse to take part in Government, is to suffer under the Government of bad men”, ” making an attempt to change the modern powerful structures, go down.

RIP.

P.S : One of the talks by Swartz How to Get A Job Like Mine, basically his personal story, bookmarked in my folder some time back, is a real classic with “just the facts.”

From the web site, American Everyman:

As I wrote a while ago, the feds decided to push for internet censorship via their last best hope: the free markets.

Big telecom companies are coming up with their own means by which to wipe certain people with certain ideas off the “internets”. I guess it’s payback for all that retroactive immunity they got from the Bush and Obama administrations when they could have been sued out the ying yang for allowing the feds to spy on us.

On the same day Aaron supposedly took his own life, Torrentfreak released a Verizon document detailing their new 6 strikes and your out plan.

The idea is basically this: Verizon will tell it’s customers when someone files a claim against them for copyright infringement. Verizon will give their users “x” amount of warnings then reduce their internet speed to something like a dial-up connection which will basically take them off the web for all intents and purposes.

As Aaron pointed out in a lecture he gave a year or so ago, the use of the ubiquitous “copyright infringement” charge is a dangerous and sweeping tool to use to shut down certain people. Everything is copyrighted by someone out there and the laws governing how much of what one can use are mirky at best.

Verizon claims they will set up a review panel with the American Arbitration Association and if you pay them $35 bucks they will review your case and find in favor of Verizon.

I find it very odd that Aaron just happened to take his own life when Verizon was about to launch this new SOPA/PIPA program of theirs own their own customers. I also find it odd that he was going to try his hacking case in court which would have brought tons of negative publicity down on JSTOR, portraying them as the guardians of knowledge for the elites.

 

 

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Geoff Burch and Frito-Lay

Geoff Burch and Frito-Lay

Geoff Burch – American vs UK Business – funny because it’s true! – YouTube

This brief video is very funny and something of a compliment to the Frito-Lay company and its marketing practices. Of course, Geoff Burch is well known both in comedy and business circles for his wit and judgment,

James Pilant

p045

From around the web –

From the web site, Make It Balance:

As part of the staff mentoring process that we undertake at Balance, Ashley has recently asked me to read a book called The Way of the Dog by Geoff Burch.  The reason behind this was to try to help me to develop management skills and thinking, rather than just being a number cruncher!

When I started to read the book I was in for a bit of a shock…there were no technical management terms (as I would have expected), in fact the book was written as a story.

The story was about a double glazing salesman called Derek who wasn’t very good at his job.  One day, Derek was magically transformed into a sheepdog!  Derek almost instantly fell into a bad crowd of sheepdogs (in this new world it was every sheepdog for himself)!

From the web site, Lee Duncan, the Double Your Business Coach:

Even the best idea without enough follow-through will end in failure, but a poor idea with total commitment to follow-through will get good, or even great, results.  Hence business success is so often 1% inspiration, 99% perspiration.

This came back to my mind this evening while I watched “All Over The Shop”, the BBC2 programme featuring business coach Geoff Burch visiting retailers in a selected city (Bristol this time) to give them tips to improve their fortunes.  Of the three shops I saw him visit, one of them did very little, even though the changes suggested were clearly going to improve his sales.

And finally, from the web site, Madalina Antohe, A Blog About Life As It Is:

I do not have a lot of favorite writers, but there are a few whom I just love. One of them is Geoff Burch. So far I’ve read 4 of his books and learnt something from each of them. But my ultimate favorite book written by him is The Way of the Dog. Let me explain.

First of all, you should know that GB’s style is a bit unusual to those used to reading self help and business books. Funny is a bit of an understatement. And describing him as a person thinking outside the box (such a cliché) is just a way of underestimating the power of his charm. Did I mention that he wanted to name this book Doing’ it Doggy Style? :)

Enough about the author who, by the way, is brilliant.

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Police Firing – Who Decides?

Police Firing - Who Decides?
Police Firing – Who Decides?
Police Firing – Who Decides?

Jason Silverstein: Should Citizens Have the Right to Fire a Police Officer?

Here are the facts. On September 22, 2011, Officer Richard Schoen stopped Jeanine Tracy, because she made a sudden lane change without the proper signals. She was handcuffed for disorderly conduct and driven to District Seven police station. During the ride, she cursed, spat at the car’s partition, and stomped on the backseat. When they arrived at the station, she did not get out. With his left hand, Schoen grabbed her shirt. With his right hand, he punched her repeatedly in the head. He grabbed her by the hair, dragged her out of the car, threw her on the ground, and struck her with his knee. These are the facts and we know they are facts, because there is video from the squad car’s dashboard camera.

Here’s what happened next. Schoen was fired on May 1, 2012, because he violated the department’s code of conduct. That code says a police officer must use the minimum force necessary to accomplish his or her purpose. But the story doesn’t end there. Schoen had been a police officer for nine years. He had a positive record, and only praise from superiors. Before he joined the MPD, he gave ten years of his life to military service. So, when he appealed the case to the Milwaukee Fire and Police Commission, they held a two-day hearing. On December 3, the Commission reinstated him, deciding sixty days without pay was a better punishment.

Jason Silverstein: Should Citizens Have the Right to Fire a Police Officer?

Police Firing – Who Decides?

Briefly – The police department fired Schoen for excessive use of force. The Milwaukee Fire and Police Commission reinstated him with a three month suspension. Then after public protests, the Commission decided that firing was more appropriate. So, who decides?

I teach criminal justice courses, and this is a fascinating piece of writing and it is an interesting if painful situation. I don’t take any pleasure from watching police officers punch handcuffed individuals. And I do understand that being cussed at by a suspect who is stomping and spitting for five minutes is going to get on my last nerve.

Should the public have influence over hiring and firing decisions concerning police officers?

The situation here was complex but I find the amount of citizen action appropriate and the commission response appropriate. However, it is easy to see where there could be situations where police were more immune to public discontent or where public opinion was allowed to influence matters of professionalism. I’d like to see some more writing long these lines.

James Pilant

From around the web –

From the web site, JSOnline (Journal Sentinel Online):

In 2009, Milwaukee County Sheriff’s Sgt. Scott Krause punched a handcuffed suspect in the face in the back of a squad car. In 2011, Milwaukee police Officer Richard Schoen did the same thing. Both incidents were captured on squad car video.

Krause was fired, convicted of a felony and served 18 months in prison.

Schoen ended up with a 60-day suspension and no criminal charges.

Amid an outcry from elected officials and members of the public, the Fire and Police Commission will meet Tuesday to review its decision to overturn Chief Edward Flynn’s firing of Schoen. But civil rights advocates continue to question the decision by the Milwaukee County district attorney’s office not to charge him in an incident they say is strikingly similar to the earlier case against Krause.

There are a few obvious differences in the cases: Krause worked for the Sheriff’s Department and struck a white male. Schoen worked for the Police Department and struck a black female.

If Schoen had been convicted of felony misconduct in public office, as Krause was, the commission would not have had the discretion to reinstate him because people convicted of felonies cannot serve as law enforcement officers in Wisconsin.

From the web site, Urban Milwaukee:

We all recognize the difficult job with which Milwaukee police officers are tasked. The City of Milwaukee spends significant taxpayer resources on ensuring the department can deliver quality, professional services. When officers get it right, we must applaud them. When officers exercise the kind of brutal disregard for regulations and human well-being displayed by Officer Schoen, we must hold them accountable. This ensures the protection of our citizens’ most basic rights, as well as the ability of the rule-abiding, vast majority of police officers to ensure residents’ safety.

And finally, from the web site, JSOnline:

The digital video recorders installed in Milwaukee Police Department squad cars are experiencing “unacceptable” rates of failure and 136 will have to be replaced at a cost of up to $900,000.

As a result, the Common Council will consider a plan to spend that money from the city’s contingency fund to replace the devices purchased in 2006 and 2007.

The disclosure comes as videos from those devices have played a critical role in at least two recent cases involving allegations of police misconduct.

In one high-profile case, Derek Williams died in July 2011 after gasping for breath and begging for help for about eight minutes in the back of a Milwaukee police squad car. The incident was recorded on the car’s digital video recorder.

An inquest into Williams’ death will be held Feb. 11.

In another case, the Fire and Police Commission voted to fire Officer Richard Schoen this week after a squad-car video showed he punched a handcuffed woman in the face. The decision was a reversal of a decision to suspend the officer for 60 days.

That video shows Jeanine Tracy stomping her feet, spitting and cursing before Schoen punches her, drags her out of the car by the hair and strikes her in the stomach with his knee after she is on the floor of the police garage.

 

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Ants and Lions in Entrepreneurship

Ants and Lions in Entrepreneurship

What They Don’t Teach in Business School about Entrepreneurship – YouTube

This is from the Stanford School of Business, a panel discussion from the 2010 Conference on Entrepreneurship. This video is deliciously titled “What they don’t teach you in Business School about Entrepreneurship.”
The discussion about “ants and lions” comes along about thirty minutes in. Don’t miss it. It’s perceptive. The panelists are Mike Cassidy, Chuck Holloway, and Nazila Alasti.
James Pilant
From around the web –
The Lion?
The Lion?

From the web site, Center for Entrepreneurship:

The previous blog  introduced two important questions any time-management process starts with. Here are a few tricks I found useful when aligning our time investments to our core objectives and principal goals.

But, the challenge of an entrepreneur and change leader is she is pulled in all different directions at the same time, which makes it extremely difficult to continually create success. Instead of racing and gaining, the entrepreneur lies on her back and is trampled by ants.  Every day is filled with tens and hundreds of actions and activities all of which seem important somehow, but together nearly immobilize her. Like with so many, the passion slowly drains out of the entrepreneur, and her goals start fading. Instead of looking to the big goals, moving forward, the small things in life take over.

From the web site, Arnonuemann – Thought Leadership: (I highlighted the text beneath the pretty graph and the graph came with it. It looks nice, so I’m keeping it but if there is a problem, let me know and I’ll pull it immediately. jp)

Lessons from the ants : all for one ( mission ) and one is there for all ….

“But ants aren’t nature’s only high-functioning teams. Packs of wolfs, pods of dolphins, and prides of lions all share remarkable strategies in terms of leadership, connectivity, execution and organization. For nature’s teams, mission matters most. Bioteams are the physical manifestation of a mission. They organize on the fly, adjust strategies in real-time and redefine membership based on environmental demands. Just Google “unicoloniality” to learn more about how some of nature’s teams inherently understand what many human teams essentially do not: membership is a function of achieving the mission and not the other way around.”

And finally from the web site, IllimunationZZ:
There is so much confusion in the air. A lot of people do not even know what they want in Nigeria and you can’t really blame them! Do people have ambitions any longer or they just want to work and get salaries on pay day? Are there counselors aiding, guiding, and moulding the interests of young students in primary and secondary schools; and in Universities? Are parents interested in, and supportive of their children’s ambitions or they just want to bask in the vicarious “glory” of those big names (Engr, Esq, Dr, Pharm, Arch…) for their own ego fulfillment? Are there still career fairs in our secondary schools and tertiary institutions? The system is so dysfunctional that we are busy struggling to accept anything slapped on us simply because there is a salary. Each time I watch National Geographic Channel, the question I keep asking myself is: “how is it that a human being dedicate his / her life time to studying butterflies, ants, birds, lions etc if not passion?” Let s/he who has a passion to bake cakes go on to become a brand; let s/he who loves flowers go on to become a brand florist; let s/he who loves to bake bread go on to become a household baker; let s/he who wants to be a great restaurateur go on to cook great meals; let s/he who sees a niche in mobile toilets go on to fill the void, let s/he who wants to be a great photographer go on to capture the memories etc. That will be Entrepreneurship and it won’t matter if you have chains of degrees or not. Passion would be the catalyst but certainly not running to grab a steering out of frustration from not getting relevant jobs.
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Doug Guthrie addresses Business Ethics

Doug Guthrie addresses Business Ethics

Business Ethics and Social Responsibility – YouTube

I listened to this video and enjoyed it, particularly the discussion of Adam Smith and Milton Friedman early in the lecture.

Dean Guthrie’s background in Chinese studies is particularly interesting to me, since I also have a great interest in the nation’s culture. I am less sanguine about that nation’s prospects than he is. China’s long term geographical and political ambitions are not compatible with continued economic cooperation with the United States.

James Pilant

The glacier like movement of business ethics
The glacier like movement of business ethics

From around the web –

From the web site, Capitalism and Friedman:

There’s no way to appreciate fully the contributions of Nobel Prize-winning economist Milton Friedman (1912-2006), who would have turned 99 years old this weekend, to the growth of libertarian ideas and a free society.

This is the man, after all, who introduced the concept of school vouchers, documented the role of government monopolies on money in creating inflation, provided the intellectual arguments that ended the military draft in America, co-founded the Mont Pelerin Society, and so much more. In popular books such as Capitalism and Freedom and Free to Choose, written with his wife and longtime collaborator Rose, he masterfully drew a through-line between economic freedom and political and cultural freedom.

From the web site, Lisa Richards, Rock and Roll Politics:

The federal government appears to be under the impression Wall Street CEO’s are better at managing the United States Treasury than trained economists.[26] [27] [28]  America has over two centuries of proof that bankers and legislators cannot be trusted with the people’s money,[29] yet, despite forewarnings from Adam Smith to Milton Friedman, Washington ignores the experts and continues helping itself to the Treasury. 

     America has gained and lost many times,[30] learning repeated lessons the central government continues committing: monetary stupidity.  In truth it is useless to wonder why Washington continues creating and wreaking economic havoc when it is obvious that human nature has proven those with power will continue doing harm[31] as long as mankind exists.  It is for this reason economics was invented, is practiced and taught: too often, lack of common sense has been in charge of money and the need for fiscally wise minds analyzing trade and industry is cost effective to society overall.  That being said, financiers tend not to listen to the money-wise discussed here: men who forewarned disaster if certain fiscal policies were not implemented, and devised solutions to resolve and repair monetary failure.  

And finally, from the web site, UNLADTAU:

To all fellow men and women out there who may have deep fondness for the liberal capitalist model of economic adaptation, I hope that you can make some adjustments in your cognitive banks. Capitalism is not a permanent facet of human life, but merely one among various epochs that will come to pass. Only impermanence is sacrosanct in the cosmos, so please refrain from singing hallelujah to a world system that is on its death knell as I articulated in a previous article.

And please refrain from swallowing hook-line-&-sinker the contentious propaganda of Francis Fukuyama about the ‘end of history’, that accordingly history had concluded with the galvanization of liberal capitalism, that history makes no more sense. Fukuyama’s theory is a slapstick narrative of hyper-valuation of the ‘mad economics’ of late capitalism and hypo-statization of reality that has no relation at all to the real in the world out there. Fukuyama had taken as ‘real’ what is actually ‘virtual’, and froze time much like unto a fairy tale of timelessness, of history-less Nietzschean moment that is fit more for infants than for adult humans. 

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Mortgage Industry as the Wolf?

Mortgage Companies as Wolves
Mortgage Companies as Wolves
Mortgage Industry as the Wolf?

Foreclosure Review In New Settlement Leaves Homeowners In Banks’ Hands

For more than a year, housing advocates and their allies worried that a review of foreclosed loans managed by banking regulators was vulnerable to mortgage industry interference.

On Monday, the Office of the Comptroller of the Currency and the Federal Reserve Board — the two regulatory bodies that had taken the lead in making the nation’s largest banks accountable for rampant foreclosure fraud — announced that homeowners no longer need worry about the independence of the reviews. The regulators, essentially admitting that the reviews were too difficult to conduct, and that assigning appropriate compensation to those most harmed by the banks was no longer a priority, said the mortgage companies themselves will determine how to distribute $3.3 billion to more than 4 million homeowners forced into foreclosure in 2009 or 2010.

Housing advocates, while acknowledging that the foreclosure reviews were flawed, said they don’t understand how turning the process over to mortgage companies improves a system already insufficiently independent.

“The regulators have decided to replace the fox in the henhouse with the wolf,” said John Taylor, president of the National Community Reinvestment Coalition, a Washington-based housing nonprofit. “It is just incomprehensible to me that they could not find a third party that has the wherewithal and independence to fairly determine what the damage is to homeowners.”

Foreclosure Review In New Settlement Leaves Homeowners In Banks’ Hands

Is this good business ethics? Well, let’s look at it from the mortgage companies’ point of view. They made an enormous profit by misleading courts and mortgage holders as to who actually owned the property. In many cases, they told clients that they should skip payments, usually three payments, explaining to them that they would then qualify for government programs like HAMP. Once the home owner had skipped the payments, the bank immediately foreclosed. It terms of money, it was an incredible success.

Let’s analyze based on the Social Responsibility. Social responsibility rests on four pillars: economic, legal, philanthropic, ethical, and philanthropic.

Did the mortgage companies profit? Yes, but it depends on which stakeholders you look at. The shareholders did well. The employees did very well. The customers, at least as far as mortgage holders, were crushed. They are unlikely to ever be customers again. It is very difficult for families to buy a home in the first place. A second bite after foreclosure is not likely. The community was hurt badly by the thousands of empty homes, the collapse of the housing industry and the larger economic bust.

But let us have a special look at our last major shareholder, the regulatory agencies. They came, they saw, they said it was too difficult and gave it all back to the banks after extracting a promise that the banks will be good and give back 3.3 billion of the money they stole in the first place. It would appear the regulators are doing okay. They have shed their responsibilities to the public, which is always much easier than doing your job.

Was it legal? No. The banks violated the law thousands of times, perhaps hundreds of thousands. They lied routinely in official documents requiring affidavits and, for all intents and purposes, were in the business of stealing homes. They have, however, walked away unscathed.

Was it ethical? You have lying on a cosmic scale and theft of the property in the many billions of dollars. I don’t feel further analysis is required here.

And finally, was it philanthropic? Did they give back to the community? This is a pure case of negative philanthropy. The banks often had no concept of what to with the homes they took. They often didn’t care for them. Sometimes, they found it cheaper just to bulldoze them. They took value out of the community and replaced it with negative costs.

This is another sorry episode, which I will wonder if it is wise to mention to my business students? Should I tell them that stealing people’s homes will make you enormously rich while you with virtually no penalties? I am honest. I will. But I would rather not have negative business ethics taught so well by the mortgage companies. It makes what I do look foolish.

James Pilant

From the web site, The Support Center:

Major banks have once again agreed to a settlement, this time worth $8.5 billion, to compensate homeowners whose homes were fraudulently foreclosed upon in 2009 and 2010 through practices such as “robo-signing.” JP Morgan Chase, Bank of America, and and Wells Fargo will pay $3.3 billion to homeowners, and the remaining $5.3 billion will reduce mortgage bills and forgive principals on homes that were sold for less than what the owners owed on their mortgages. 3.8 million homeowners will be eligible to receive compensation ranging from a few hundred dollars to a maximum of $125,000.

In another settlement, Bank of America has agreed to pay the federal housing finance agency, Fannie Mae, $11 billion for selling the agency bad mortgages that defaulted, causing Fannie Mae to assume all the losses. $3.6 billion will be used to compensate for the bad mortgages, and $6.75 billion will be used to buy back mortgages.

Both of these agreements are part of a process to mitigate the impacts of the housing crisis and to hold the banks accountable for their role in both creating the housing bubble and in using questionable, if not fraudulent, methods in servicing their loans and processing foreclosures. Having faced significant losses, Bank of America continues to move out of the mortgage market, and in the deal with Fannie Mae, it agreed to sell the servicing and collection rights for 2 million loans, totaling $306 billion. Some economists and analysts are concerned that as the major banks shift away from mortgage lending, the industry is being consolidated into the hands of a few banks. However, though the housing market is recovering slowly, banks, such as Bank of America, might not be in a position to compete, given the losses they’ve already incurred and the problems they’ve had in servicing loans.

From the web site, Buzz Sourse:

Housing advocates, while acknowledging that the foreclosure reviews were flawed, said they don’t understand how turning the process over to mortgage companies improves a system already insufficiently independent.

“The regulators have decided to replace the fox in the henhouse with the wolf,” said John Taylor, president of the National Community Reinvestment Coalition, a Washington-based housing nonprofit. “It is just incomprehensible to me that they could not find a third party that has the wherewithal and independence to fairly determine what the damage is to homeowners.”

Regulators said the review process, which sought to determine if specific loans were unfairly foreclosed upon, was too costly and time-consuming. Under the new deal, 10 mortgage companies, including Bank of America, Wells Fargo and JPMorgan Chase, will pay $8.5 billion. Of that, $3.3 billion is earmarked for direct payments to “eligible borrowers” whose foreclosures were handled improperly. The remaining $5.2 billion will help struggling borrowers with programs such as loan modifications.

And finally, from the web site, 4Closure Fraud (reprinted from ProPublica):

The Independent Foreclosure Review was supposed to be a full and fair investigation of the big banks’ foreclosure abuses, and it was trumpeted as the government’s largest effort to compensate victimized homeowners. Federal regulators, who designed the review, forced banks to spend billions to carry it out. Millions of homeowners were eligible and hundreds of thousands submitted claims. But Monday morning, the very regulators who launched the program 18 months ago announced that it had all been a massive mistake and shut it down.

Instead, 10 banks have agreed to pay a total of $3.3 billion in cash to the 3.8 million borrowers who had been eligible for the review. That’s an average of around $870 per borrower. But typical of a process that’s been characterized by confusion, delays and secrecy, regulators said the details of how the money will be doled out were not yet available.

The headline number for the settlement is $8.5 billion, but that includes $5.2 billion in “credits” the banks will receive for actions they take to avoid foreclosures, such as providing loan modifications. That’s very similar to the separate $25 billion settlement reached last year between five banks, 49 states and the federal government. That settlement has been criticized for awarding credit to banks for things they were already doing.

 

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Robert Dolan and Business Ethics

Robert Dolan and Business Ethics

Robert Dolan Teaches Business Ethics – YouTube

This is a brief video in which Robert Dolan, at that time, Dean of the Ross School of Business at the University of Michigan, held forth on a number of issues particularly business ethics. He begins the discussion by talking about the slow down in hiring in the financial sector and the effect on the students, moves into a discussion of how business ethics should be ingrained into the courses rather than a set of separate courses, and he ends with a good discussion of executive compensation.
His idea of action-based learning is used at the Ross School of Business and explained in some detail on their web site. I recommend you watch the video and, if an educator, read the web site explanation.
James Pilant
Wall_Street_SignFrom around the web –
From the web site, Stacy Blackman Consulting:
The most commonly asked question–How is Ross going to maintain its competitive advantage with its action-based learning and what is the school’s high-level strategy going forward?–elicited this response:

“While there was some recent debate surrounding whether or not we should abandon our action-based learning as the cornerstone of our brand and pick a ‘new horse,’ the faculty has chosen to ‘feed and care for the horse we’ve got.’ In other words, the school recognizes that we do action-based learning better than any of our competitors and it should prevail as our primary differentiating factor. Moving forward, Ross looks to grow this strategy by taking it abroad.”

Dean Dolan is also committed to boosting Ross’s global footprint via the strategic placement of international offices, starting in India and then China, the MSJ reports. Having offices in Hyderabad, Mumbai or Bangalore will help Ross better source field-based Multidisciplinary Action Projects (MAP), and offices with local roots will facilitate placement of Ross students in India better than efforts based in the U.S.

From the web site, Big Think:

Question: How does the Ross School integrate real world business problems in the classroom?

Robert Dolan: Well, there’s a number of ways. I guess I’ll start out by talking about the way that we do it is maybe as a little bit distinctive among business schools. I think the signature element of our school, our MBA program in particular, compared to others, is what we call action based learning. 

So right now, for example, all of our 425 first year MBA students would not be found in Ann Arbor.  They would be scattered around the globe in about 90 teams, working on real world problems. So what we’ve done to try to differentiate our students and really provide value added was probably about 10 years ago, slightly before I got to the school, we instituted what we called, this map project, which we call multidisciplinary action projects. So we, since, built that up and really invested in it as our point of differentiation.

And finally from the web site, See Sunshine:
For the second time in three years, the Stephen M. Ross School of Business has been named the No. 1 business school in North America by the Wall Street Journal.The Ross School is one of only two business schools to be ranked in the top four every year since the Wall Street Journal began its rankings in 2001.

“We’re happy the Wall Street Journal has again ranked us as the best MBA program in the country,” said Ross School Dean Robert J. Dolan. “The Journal’s ranking is particularly gratifying as it reflects the sentiment of hiring companies that see our graduates at work every day.”

 

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British Haves and Have Nots

British Haves and Have Nots

Beveridge and the Royal Family

Sara Ibrahim
Sara Ibrahim

There are two things that have really struck me this week: Osborne’s proposals to make real term cuts to welfare and the impending arrival of a new royal baby. To my mind these things are inextricably linked. Before you ask this isn’t bourn of too many mince pies and mulled wine before Christmas.

We are increasingly living in a polarised society of haves and have nots. The Tories are trying to weave a narrative that pits ‘strivers’ against ‘scroungers’. However, our attitude to the news of a royal baby to me shows how confused our attitude to the state and state provision has become. The British Monarchy is a cornerstone of our social structure but one that is arguably funded by the public purse. Currently, the monarchy receives 15% of Crown Estate income amounting to about £200 million a year.  Debatably this land isn’t private land but land kept in trust for the public. Further, there are myriad costs of running the monarch including security and special occasions such as the Jubilee celebrations. While the public subsidy for the monarchy has been subject to trimming, few have expressed anything but delight at a new addition to ‘the firm’.

This piece doesn’t seek to make the case for a Republic but instead to probe why we can express unreserved joy at the impending royal birth and simultaneous disgust at so called scroungers and their families. Osborne’s decision to increase welfare benefits by 1%, under the rate of inflation will mean real term cuts for many. One of the groups who will be adversely affected by these cuts are mums (and dads for that matter) who will be hit by below inflation rises to child benefits and working tax credits. This has been termed the mummy tax by Labour. The term seeks to highlight the impact of Osborne’s tax cut on real families who rely on these benefits to work and support their families.

The author, Sara Ibrahim, works in law like me. I find her juxtaposition of royal family and welfare recipients to be clever and I recommend you read it in full.

The problem of haves and have nots is not a purely British phenomenon. The United States has increasingly become two societies with different laws, expectations and responsibilities for the different classes. Single mothers with three convictions for marijuana possession can wind up with fifteen years in prison while bankers who launder nine billion dollars in drug money are unprosecuted.

Business ethics under these circumstances become more and more a matter for humor. Business ethics cannot exist in a moral vacuum. There has to be support from the press, the church and the state. Having two societies moving in different directions complicates that support and promotes the moral vacuum.

There maybe some of my readers who may find some justification for very large differences in income. But is it so easy to justify two standards of law, one for the great mass of Americans and another for the one percent?

James Pilant

From around the web –

From the web site, The Guardian:

There’s nothing new about the attempt to divide “benefit claimants” from deserving working people. Tough settlements for the welfare system have long been justified by claims to be cutting largesse from an undeserving poor. But neat categories like these have long been confounded by reality, and changes in the welfare system over the past 20 years have made them all but nonsensical. As Resolution Foundation analysis shows, 60% of the chancellor’s benefit squeeze hits working households. Whatever the rhetoric, it’s so-called strivers that bear the brunt of the cuts.

Why is the formula of “skivers and strivers” showing signs of age? One reason is Labour’s system of tax credits, which changed welfare by supporting low and middle income working households – the group the chancellor claims to be talking to. Tax credits themselves were in part a political move, to change the debate about welfare and poverty. But they also reflected new economic realities: childcare costs had soared, and many parents, particularly women, could not afford to work. Meanwhile, low pay had crept up to epidemic levels. For the one in five working people who now earn below £7.50 an hour, in-work support is vital.

From the web site, Alex’s Archives:

Plenty of political announcements made at this time of year are little more than conference fodder. They grab a headline and a round of applause and that’s the last we hear of them. But George Osborne’s proposals to cut another £10bn from welfare don’t fall into that category. They were buried in the detail of previous policy statements and it was only a matter of time before they bubbled to the surface. Conference season is the ideal time because it allows some posturing against the modern folk devil – the feckless scrounger.

We only have media reports of Osborne’s speech at the moment, and we’ve no idea what’s going on behind the scenes, but a key element to this story is going to be how it plays out within the Coalition.

Clearly the New Victorians of the Conservative party are full-speed ahead for cutting welfare, with a strongly Malthusian undertone that if we lose a few scroungers along the way through starvation then that’ll save us a bit of money.

And finally from the web site, Liberal Conspiracy:

At the Autumn Statement we were told that the Chancellor is increasing spending on infrastructure whilst cutting spending on welfare. Such statements are confusing “infrastructure” for “lumps of rock”.

There are two reasons that you would increase spending on infrastructure. The first is that you believe that the spending itself will be good for the economy: the money will create jobs, the newly employed people will buy new things, shops will employ more people, etc.

The second reason might be that you believe that the underlying framework of your system could be more efficient. The classic example would be that late trains cost people time working, so you invest in better train lines.

However, in practice, I see very little notable difference between what Osborne sees as ‘welfare’ and what he sees as ‘infrastructure’ – other than who it is for. What the Chancellor calls infrastructure, I could call corporate welfare.

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Police Theory, Manoje Nath

Police Theory, Manoje Nath
Police Theory, Manoje Nath
Police Theory, Manoje Nath

Musings, the web site of Manoje Nath:

What Law? Whose order?

Law and order is a tricky business and the best of us are sometimes tested and found wanting largely because of the ambivalence of the mandate of police. Law is codified, made formal in various acts-the IPC, CrPC, evidence, etc. But what is order? Is there a permanent, ordained, immutable order? A preferred order? An ideal state of order? The construction of the meaning of order is exclusively the area of police expertise.

The law obligates a police officer of appropriate rank present on the scene of trouble to do everything within his legal means to prevent trouble and disperse the mob. It is a responsibility, not a privilege and powers to discharge this responsibility inhere in him; he does not enjoy it during the pleasure of somebody. Now the DGP says it was on his orders that the police force did not react. That says it all. Law must take a bow before the dictates of order

Musings

I have great respect for the thinking of my colleague and friend, Manoje Nath. We in America should pay more attention to the ideas and philosophy of criminal justice. Surely, the experiences of policing in a nation of 1.4 billion people have have some valuable lessons.

The short excerpt above does not do justice to the article. It is constructed in a carefully designed pattern, very fine writing. So, I recommend you go read the article in its entirety. In addition, I couldn’t help but notice that his remarks were published in a good number of Indian publications.

James Pilant

P.S. This may seem off the pattern of business ethics but I also teach criminal justice courses and justice is a critical element in ethical analysis.  (JP)

From around the web –

From the the Recommendations of the Malimath Committee on reforms of Criminal Justice System: (This is a very small piece of a very large set of recommendations.)

1. Need for Reforms
It is the duty of the State to protect fundamental rights of the citizens as well as the right to property. The State has constituted the criminal justice system to protect the rights of the innocent and punish the guilty. The system, devised more than a century back, has become ineffective; a large number of guilty go unpunished in a large number of cases; the system takes years to bring the guilty to justice; and has ceased to deter criminals. Crime is increasing rapidly everyday and types of crimes are proliferating.

The citizens live in constant fear. It is therefore that the Govt of India, Ministry of Home Affairs constituted the Committee on reforms of Criminal Justice System to make a comprehensive examination of all the functionaries of the Criminal Justice System, the fundamental principles and the relevant laws. The Committee, having given its utmost consideration to the grave problems facing the country, has made its recommendations in its final report, the salient features of which are given below: …

From the web site, Daily News and Analysis, from an article by Rakesh Bhatnagar.

Way back in 1604, House of Lords Judge Sir Edward Coke ruled that “the house of everyone is to him as his castle and fortress, as well for his defence against injury and violence as for his repose.” There was serious concern for the privacy of a living a being as the contested and universally acceptable verdict says “The midnight knock by the police bully breaking into the peace of the citizen’s home is outrageous in law’. Agreeing with him, Justice Douglas explained that the Free State offers what a police state denies – the privacy of the home, the dignity and peace of mind of the individual.

“That precious right to be left alone is violated once the police enter our conversations,’’ the two thinking judges said as they unwittingly laid the foundation of the hope for a nation “where the mind is without fear and the head is held high…”

It’s a pleasant surprise that Lord Coke’s concern was echoed recently by Indian Supreme Court judges AK Patnaik and Swatanter Kumar as they examined the significance of the Right to Information Act.

And finally from the web site, a PDF file, MEASURES FOR CRIME VICTIMS IN THE INDIAN CRIMINAL JUSTICE SYSTEM by Kumaravelu Chockalingam: (This is a very brief section from a 13 page paper. jp)

II. OVERVIEW OF THE INDIAN CRIMINAL JUSTICE SYSTEM
India derived its criminal justice system from the British model. There is a clear demarcation of the role
and powers and functions of the Legislature, Executive, and Judiciary. The judiciary is independent and there
is a free press. The penal philosophy in India has accepted the concepts of prevention of crime and treatment
and rehabilitation of criminals, which have been reiterated by many judgments of the Supreme Court.
Victims have no rights under the criminal justice system, and the state undertakes the full responsibility to
prosecute and punish the offenders by treating the victims as mere witnesses.

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American Violence

American Violence
American Violence
American Violence

Jon Eig: Lincoln and Django: The Way of the Gun

I started out to write about gun control. Halfway through, I realized I know little about the issue. I should probably read more on it before I write on it. So instead, this is about Westerns. Django comes from a deep American tradition. Even though it is nominally based on the Italian form of that American tradition, the Italians like Sergio Leone and Sergio Corbucci (who directed the original Django in 1966), were just borrowers. The classic American Western is built on classic American ideas: That the individual, and not the collective, is the most important component of a society, and that violence, especially gun violence, is the most legitimate way to settle both societal and personal grievances. Anyone wishing to have a meaningful dialogue with those who support gun ownership in this country had better understand that fundamental ethos.

I have often told my students that a great paper could be written tracing the last century of American culture by examining seminal Western films. From Stagecoach (1939) to The Searchers (1956); from The Wild Bunch (1969) to Unforgiven (1993), each says something profound about the way we see ourselves. John Ford’s Stagecoach was the first fully mature Western of the talking era, and its message is clear. The banker is evil, the bourgeois ineffectual. As the heroic couple (outlaw and prostitute) ride off at the end, they are said to be “free from the blessings of civilization,” perhaps the most succinct statement of the Western philosophy.

Jon Eig: Lincoln and Django: The Way of the Gun

Our moral choices are very often not made based on reason and judgment but by habit and practice. American history has left us patterns of behavior that we habitually use. The history of the American West has left several problematic behavior patterns. First, we have a worship of outlaws. Vicious scum like Jesse James and Billy the Kid occupy volumes of complimentary literature, films and television.

I was interviewing a criminal once while I was working at a U.S. Probation office. I asked him why he committed crimes. He told me that he was an outlaw, a man who could not be limited in his behavior by society, a man outside the law. I was looking at a pathetic wrongdoer, a man who had brought misery and pain into the lives of everyone who knew him, but in his mind he was a heroic figure out of the Old West. It is not unusual in criminal justice to encounter criminals who consider themselves heroic figures, who were only doing what they “had” to do.

There isn’t much allure in doing the intelligent, rational thing when your culture prefers irrationality and violence.

Fortunately, America has counterbalancing traditions as well. Democracy, the ballot over the gun, is also a force embedded in this culture.

To act ethically and morally, reason is a critical factor, but there must also be an awareness of the cultural habits that often (always?) influence our decision making. Historically, Americans tend to lean toward gun use when confronted with problems. This may have been more appropriate in the Old West than now. It probably made more sense at the time.

Acting with reason, using logic, understanding history, will eventually undermine the culture of violence. We have advanced as humans by limiting the use of violence by ritualizing it, making it inappropriate in most circumstances. That struggle continues.

Business ethics is as much propelled by culture and habit as it is by intelligence.

We by our writing and our actions are creating a different perceived reality in ethics. It will one day take its place as cultural habit.

Let us live in the knowledge that our action and beliefs in many ways create perceived reality. That a heavy responsibility that we should take seriously.

James Pilant

From around the web –

From the web site, Eyewitness Blues:

I think most Americans – left, right and center – can at least agree that there is something disquieting happening at the core of American public culture these days. It’s something that often pops up as public displays of anger and vitriol that many times flirts with paranoid delusion. Maybe it’s always been there and we just never were exposed to it on a mass scale before the Twitterverse.  Regardless, we live in a culture where violent rampages against strangers, though never condoned, are now simply not beyond the pale of American daily life. We call such acts unacceptable, and then by our continuing inability to address how to stop them, we quietly accept them.

Yeah so, humans are occasionally capable of unspeakable violence. News flash. Still, the nature of these incidents and their commonality suggest that this is an American thing, a revelation that puts an ugly stain on that old trope of American exceptionalism.

From the web site, Transition Times:

But I want to know why, as Americans, we tolerate and indeed seem to relish representations of violence, while at the same time we’re so fearful of actual violence that some of us are stockpiling weapons in our homes to prepare ourselves for the worst.

In the old days—not that long ago, in the scale of human history—a whole town used to turn out for a festive viewing of a hanging.

Today in places where conservative Islam reigns, women are stoned to death in public spectacles of participatory violence.

But how different is that, really, from the great American past-time of engaging in virtual violence of the most vicious sort?

America is the most violent, militarized society on Earth and Americans are the greatest exporters of violence, both physical and virtual, to the rest of the world.

Most perpetrators of violence—again, both real and virtual—are men.  Men are the greatest victims of violence too, though women and children bear a disproportionate share, given that they are far less likely to be pulling the triggers.

We need to start looking much harder at the way our culture encourages violence by selling us the story that real men enjoy violence and can handle it with insouciance.

From the web site, 90.9 WBUR:

The real solution however, Gilligan says, is treating violence as a public health issue or as part of preventive medicine.

“In preventive medicine, we learned 150 years ago that cleaning up the water supply and the sewer system was much more effective in preventing epidemics of cholera and other infectious diseases than all the doctors and medicines and hospitals in the world just dealing with people one individual at a time.

“And I say here too, rather than focusing on primarily, say, trying to identify which individuals are maybe most at risk of becoming violent, the more efficient method of reducing the level of violence in our society would be to look at our environment and change it,” Gilligan said.

It’s no easy task. Gilligan said a first step for him would be to ban assault weapons and large capacity magazines. But he said the bigger picture is to tackle socioeconomic issues.

“We do have epidemics of violence when the unemployment rate increases, when economic inequality increases … And these tend to come down when we either ameliorate the effects of unemployment — for example, unemployment insurance — or find ways to protect people from utter humiliation and loss of status,” he said.

He went even further, saying that society as a whole needed to adopt a perspective “that we will not abandon or neglect or ignore anyone, that we will regard ourselves as responsible for the welfare of everybody.”

“I realize this sounds like pie in the sky … But I think it is possible to create a less aggressive and less violent society,” Gilligan said. “It’s just that it’s a matter of generations. It’s not something that happens overnight.”

And finally from the web site, Reflections – Deepak Tripathi’s Diary:

While all eyes are on Newtown for a few days, killings continue around the United States without much notice. Trigger happiness is an instinct difficult to separate from the ease with which guns can be obtained. Their availability in America is in abundance, price is cheap, the reasons to possess them many. To show off as trophies, to hunt, to “protect,” to satisfy one’s macho instinct; or because it is every American’s right to carry arms. Such mindset is absolutist. Such faith in the superiority of culture, which feeds on the idea of “American exceptionalism” that gives the United States a divine mission, is fatally flawed. For man cannot remain unaffected by what he does to fellow humans. At this time of sorrow, it would be appropriate to also think of the many young and the innocent killed in America’s foreign wars.

In a Boston Review article titled “The Power and the Glory: Myths of American Exceptionalism” in the Summer 2005 edition, Howard Zinn wrote these words: “Divine ordination is a very dangerous idea, especially when combined with military power (the United States has 10,000 nuclear weapons, with military bases in a hundred different countries and warships on every sea). With God’s approval, you need no human standard of morality.” It is this state of mind that haunts America today.

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