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TechnoratiGolden Parachutes Instead of Accountability
One of the most noticed photographs in the newspapers last week was that of a well-dressed Pakistani lawyer on the streets hurling back a tear gas canister toward the soldiers who were suppressing a demonstration by lawyers protesting the martial law (called "emergency rule") of Gen. Pervez Musharraf.
Can anyone remember anywhere in all of modern history, large numbers of lawyers leading the resistance as they did on the streets of Pakistani cities way ahead of the workers, peasants and even the university students?
Pakistani police and troops rounded up the mass protests of lawyers and pushed hundreds of them into trucks on the way to the prison. Lawyers were willing to go to prison and endure beatings, while demanding the re-establishment of the rule of law and the independence of judges right up to the Supreme Court, a rare display of professional courage and duty.
What about lawyers in the United States standing up to the Bush regime's regular violation of our Constitution, the imprisonment of thousands of people without charges and without attorneys, the assault on due process, probable cause, habeas corpus, the spying on Americans without court approval and the defiant, illegal use of torture?
No demonstrations yet. No resolutions by bar associations saying that Bush and Cheney should resign or be impeached.
Except some dozens of active civil liberties' lawyers, law professors and the former head of the American Bar Association, Michael Greco, the 800,000 or more practicing lawyers have been pursuing business as usual. Given their canons of ethics and their status as officers of the court, this looking the other way is not very professional behavior.
Professional behavior also has been in short supply on Wall Street. Once again, the accountants, the corporate lawyers, and the Boards of Directors of such giant companies as Merrill Lynch and Citigroup either were paid to go to sleep on the job or cared less.
Both Merrill Lynch and Citigroup have announced that thus far they are writing off a total of $20 billion on subprime mortgage paper in the housing sector. At the same time, the bosses of these companies, Stanley O'Neal and Charles O. Prince, have been fired and awarded vast golden parachutes totaling $360 million for their mismanagement in taking on reckless levels of risk for short term premiums.
But where were the highly paid watchdogs for these companies in the accounting and legal professions? Professionals are supposed to prevent trouble, not just profit from it. This looks like a repeat of the previous busts during the savings and loan scandals and the dot com collapses.
Once again, see the bitter fruit of de-regulation or non-regulation by the federal and state governments. It will happen again and again to worker pensions, small investors and the workers, who are laid off, until there is regulatory law and order and the investors are given more dedicated legal authority over the corporations which they own.
This week, a new book titled Corpocracy (Wiley Pub.) by veteran corporate governance champion, Robert Monks, will be released to shine a bright light on this lack of shareholder rights and the passivity of large institutional shareholders (like pension funds, trusts and university endowments) toward meeting their fiduciary duties.
The gross greed, power and unfairness of this whole rigged system of non-accountability for the top bosses, who mess up big time but leave with the riches of Kings, were the subject of a remarkably forthright article in Sunday's Washington Post by William S. Lerach-until recently, a very successful litigator against corporate scan artists.
Lerach pleaded guilty last month in federal court to a conspiracy charge regarding payments made to investor-plaintiffs in lawsuits brought against corporations claiming fraud and other misdeeds. For this behavior he will have to pay $8 million in fines and go to prison for at least one year.
Who was damaged by Lerach's crime? The court was misled because it was not told that monetary incentives were given to ready-to-sign-on plaintiffs in the race to the courtroom to become the lead law firm in such class action lawsuits.
Compare this violation with the trillion dollars looted or drained from millions of workers, investors and pension-holders by the corporate crime wave of the past ten years. Lerach and his firm recovered billions of dollars for defrauded investors over that same time span.
Lerach can be forgiven for wondering why so many reckless bosses were rewarded at the expense of shareholders and company profits. Especially, since these big bosses of the huge losses through their rubberstamp, selected boards of directors, essentially decide what to pay themselves while they are in their suites and when they leave.
Top mismanagement of many U.S. companies-consider the domestic auto manufacturers, for example-is rife with rewards for bad jobs done. Big rewards. In any fair system of corporate governance and SEC regulation, these bosses at least would have had to give up their undeserved pay and cancel their golden parachutes.
Even though O'Neal and Prince have admitted to "mistakes" and "flawed risk models," O'Neal leaves Merrill Lynch with $160 million in addition to over $100 million he received in pay for the past two years.
Reports have Prince leaving with $100 million along with the $100 million he was paid as Citi's CEO. Both companies' stock value has fallen sharply in recent weeks.
In his article, Lerach mused about how the "legal system is a lot tougher on shareholder lawyers than it appears to be on Wall Street executives."
During his time in prison, maybe the determined Lerach can plan his next moves to bring corporate crime, fraud and abuse against all too trusting individuals, institutions and government purchasers to systemic accountability.
Maybe he'll take his strategies to a level far beyond the occasional class action suits that get through all the interference that indentured legislators and conservative judges put in their way.
For if we the people do not have a say, we will continue to pay and pay.
Ralph Nader is a consumer advocate, lawyer, and author. His most recent book is The Seventeen Traditions.
24 Comments so far
Show AllI'm hoping to see a free trade agreement that outsources lawyers! Think of all the money the corporations could save if the used lawyers from India!
Many of the world's problems could be easily and inexpensively solved given a little creative thought. For example the problems of mad cow disease in England and unexploded land mines in Cambodia suggest that we simply send the cows to Cambodia to roam the countryside and detonate these mines. A twofer.
The problem of morally crippled, BMW hotrodding American lawyers can also be solved together with the immigration problem. Instead of rounding up and deporting hundreds of illegal border crossers every day, we should round them up and send them to law school. Soon we would be up to our eyeballs in socially aware $8/hour lawyers willing to work long hours without their heads up their asses.
"I'd suggest a little-less hostility towards Lawyers, in-general, though."
"The first thing we do, let's kill all the lawyers." Bill Shakespeare, King Henry VI
You think we show hostility?
"For if we the people do not have a say, we will continue to pay and pay."
Ralph now channeling Cochran? [g]
What blessing and rare-treat are people like Nader (albeit there are so-few).
Thanks, again, Ralph...
Love the 'golden-showers' and 'toxic/dropped lawyers' lines...CD is becoming a training-ground for a new host of comedic-pundits!
I'd suggest a little-less hostility towards Lawyers, in-general, though. Regardless initial-motives, those taking on those studies by pursuing this profession (like Ralph, here) are exposed to some of the most laudable and wise precepts and teachings to be found in secular-studies [so, too, for the Pakistani-lawyers discussed in article]. Yes, many subvert those 'learnings' to vile self/client-Interests...but MANY never-do.
The joke about 'half the lawyers at the bottom of sea' is well-framed -- if only such would come to pass, with they followed-shortly by half the Politicos, half the CEO's, half the Lobbyists...and so-on. [Just, please -- see to it that these are the 'right-Half'!]
'Know them by their fruits...'
Anarcho..6:52 PM...So, your idea is to somehow work outside the system and TAKE what we want, rather than work with the system and discard the rotten apples, following Jefferson's idea that the Constitution had to be renewed every few years....which is, of course, long overdue. Maybe you are correct. Which idea has a better chance of gaining a foothold...ANARCHY or RENEWAL?? How is a referendum asking something to be given. It's exercising the American Citizen's right to petition the government when it is not responsive to the will of the PEOPLE. Something tells me it's not quite time for anarchy...we've seen more than enough blood shed and civillian deaths. The journey of a thousand miles starts with the first step. Eventually, anarchy may be the answer, but let's give a more passive way a chance right now. This is simply a method to get more Citizens involved and heard.
ruthru; Excellent!
commanderchimp,
might as well start over with a new title. you've become a joke.
I think commander chimp is like an annoying little imp that gets his kicks by posting his predictable Nader bashing comments. He probably sits back and chuckles as one by one people fall for his bait and start defending Nader, while the genuine issues that Nader has raised often get sidelined.
I ignore him whenever I see his posts. There are so many other interesting comments, why waste time with a monkey brain, (apologies to the monkeys).
willybill November 13th, 2007 4:05 pm
"Commander_n_chimp……DO NOT SPEAK FOR COMMON DREAMS. Try to become a contributor of value."
I'm with you willybill. However, since we can't see each other, it's very likely that commander is fairly young and relatively naive. Something to keep in mind as we think about how we "discuss" with each other.
Chimp, give it up, man, present a reasoned argument, not a thoughtless diatribe. Learning to hold yourself back from folly is a skill like any other.
Democrats have been just as guilty as Republicans in deregulating everything. The system is corrupt, not just one party.
As for greedy CEO's and boards of directors I can only say this; your day is coming, keep up the good work and this nation will become Socialist and you'll lose it all.
Bang on Ralphie boy! I've had far too many jobs at 8$/hr and seen too many employees sacked because the till was out by a penny to have any tollerance for the rich getting away with stealing millions. Steal a loaf of bread and get life in jail, steal a million get the golden parachute (but only if you don't use a gun when doing it...).
What a great lesson to teach the kids, eh?
Nader is just another reformist idiot who isn't advocating any serious change. According to him we should reform the corporations, the IMF, the World Bank, and capitalism in general. I say get rid of all of them, they are all repressive institutions which serve no good to anyone. It's funny how Nader talks about how horrible these corporations are but he never goes too far in detail, he would never of course describe the slavery which workers are subjected to, no no, that would be bad. He would never call for the abolition of the capitalist system which creates so much inequality and oppression, no, he just wants to reform everything. He doesn't call for the abolishment of the wage system, or classes. I agree that corporations are corrupt, and unethical, Nader is right on with a lot of his criticisms, it's just the solutions that he advocates that are wrong. He himself is a stockholder of Cisco which is by no means the most honest, and ethical corporation, but he has no problem investing in them. Never does criticize them for their unethical actions either. And as far as him stealing an election, what does it matter it anyways? This system is corrupt, no matter who you vote for, nothing seroius will change. It may be too far back for you liberals to remember but your hero Al Gore also advocated for war with Iraq, and said that they were a grave threat to the safety of the United States. John Kerry just felt that the war was being handled wrong, didn't want to end it. And Clinton did just as extreme of things as Bush, so don't act like he was that much better, the anti-terrorism act of 96, anyone, anyone? This is taken from democracy now! from 1999, "In announcing new anti-terrorism initiatives, President Clinton last week warned that it was highly likely that a terrorist group will launch a biological, chemical or cybernetic attack on the continental U.S. in the next few years. Saying that he had been persuaded by intelligence reports, the president said that he was considering a proposal from the Defense Department to establish a commander in chief for the defense of the continental United States, a step that was met with concern by civil liberties defenders. The Pentagon has commanders overseeing regions around the globe, but its jurisdiction does not extend to the United States itself.
Responding to questions on whether his measures could represent a loss of individual rights, Clinton insisted that such erosion would never occur, and asked Americans to trust him on the issue. Many voiced skepticism that these assurances came from a President who approved the biggest expansion of the government's use of wiretapping, contained in the Anti-Terrorism Act of 1996."
Ooops, I guess that wasn't supposed to come out. Democrat, Republican, Independent, Libertarian, their all the same, just more capitalist pigs that want to screw us over. Voting is a waste of time, and is by no means a representation of anyones freedom.
I wish Nader would run for Congress in 08. He'd be useful in Congress. We need to elect new faces to Congress in 08 if we would remain a democracy. This status quo enabling bunch of semi-permanent insiders close ranks around the big money and each other (no impeachment).
Nader would make a good Congressman.
Just ignore commander n chimp, he's always spitting his delusional hatred. Oh and by the way, once he stops blogging on CD I WILL throw a party too. (I don't go as low as him to wish him to be dead)
willybill-
another government isn't what is needed. All governments are the same, and so long as we have them, we will never truly be free. It is time to take a stand against all governments, we don't need them and the world will be better off without them. Furthermore, a ballot? Cmon, do you honestly think the government will listen to you? Even if the majority did believe this government should be dissolved, there is no way that this government is going to allow it to happen. Stop asking for things to be given, and start taking them yourself.
Commander_n_chimp......Get informed......read a book.....learn to reason.....DO NOT SPEAK FOR COMMON DREAMS. Try to become a contributor of value. Your vitriol against a man of Nader's integrity is quite borish and unsubstantiated.
Hey Ralphie Boy. None of this would be happening if you hadn't helped the Republicans steal the election in Florida. You directly enabled an administration that violates our constitution and international law. You directly enabled an administration that unashamedly advocates torture and war crimes. Shame on you. Your idiotic articles posted on Commondreams are not appreciated. Please die soon of a natural disease so that I can throw a party.
Maybe the USA should air drop all the US lawyers over Pakistan to join their bretheren?....maybe even provide parachutes...
Again, Nader- a true American hero- speaks the succinct truth that will never make it to mainstream awareness; therefore, the numb, brainwashed, victim/perpetuators, all those status quo supporters, will never trip over that incessant alarm in one's mind which, once triggererd by a glimmer of truth, never quits. Nothing will change in any great hurry, with the way the truth is suppressed from the masses. Yes, people are talking in their living rooms, and elsewhere, amongst family/friends, and the tide is shifting, ever-so-slightly, but with little momentum, compared to the free-for-all (in the game, that is) attitude promoted by the current US administration. Those huge sums, the "golden parachutes" (does seem more like hush money), expose the hideous contrast between rich and poor in the country like nothing else. That kind of money does not get funneled down to the working poor in this country, where it belongs (for example, decent health/dental care). That US lawyers are doing nothing to promote fairness/justice is no surprise at all- sure there are some decent ones out there, but the rest of them are too busy, helping the rich, to make a stand for justice/democracy. How many parents encourage their children to become professionals so that they can some day, say, help the poor? No, you hear, become a lawyer, or doctor, because those professions earn a good income. So, from the outset, we have a group of people in that field that were encouraged to pursue their line of work primarily for the financial benefits. Lawyers, coming toegether as activists in the US? That's like having a similar scenario with activist doctors in the US. Doctors are also too worried about their financial motivation to do anything about the terrible health care situations this nation faces. Like lawyers, doctors are typically much too busy maintaining the status quo, which keeps them so very comfortable, so while both groups plainly see the health and justice systems of our country degrade, as long as they don't feel the pinch, things will only get worse for the rest of us. ATTN: Baby Boomers: go ahead, be extremely afraid, because the nursing home scenarios, while never stellar in the US, are becoming worse, and no groups of doctors are out there in protest to try to change things in time for the unavoidable, overcrowded scenes of hell awaiting you in your "golden" (but with no "parachute" for you) years.
ATTORNEYS ON THE DEFENSE
Nader is right on target.
Attorneys used to line up their occupations with their civil aspirations. Doing what one loved to do, like defending consumers against anti-competitive practices, which used to be a respected position in society.
Not that the opposing side was necessarily not respectable -just that the playing field for both sides was more level.
Particularly in public utility regulation, when a utility tried absurd, over-the-top incredulous stunts designed to abuse its monopoly power, a good attorney backed up by technical staff could lay it bare for all to see. Even the most corrupt regulators would tend to back off in the face of such public evidence.
That's also why it was essential when many attorneys turned explicity against Ashcroft and Gonzales in public.
But such individual acts of courage have become the exception instead of the rule among attorneys. The "fix" is usually in and rocking any boats has become far more costly than joining the crowd and filling up the billing hours.
Meanwhile, mere mortals as non-attorneys cannot bypass the legal barriers that prevent the rest of us from filing otherwise perfectly legitimate claims of all kinds. The firebrands that used to do it for us are a dying breed, many converted to the celebrity-rubber-chicken circuit.
Below is a repeat post of a link several articles back on CD citing an incident by Walmart, which chided some out-of-house attorneys for charging too much at $1,000/hour and $160,000/year.
"Oh, your Honor, the indignity ... the humiliation ... the slander and libel ... from WALMART no less ... have they no shame? ... what's next your Honor, walk-in retail legal services over the internet from COMMUNIST CHINA? ... WE WANT A MINIMUM WAGE ... UH, HOURLY FEE ... "
http://blogs.wsj.com/law/2007/11/02/wal-mart-strikes-back-at-associate-salary-increases/
Lawyers = our legislators = war criminals
They are "in" the game, and doing quite well, thank you.
"Maybe the USA should air drop all the US lawyers over Pakistan to join their bretheren?"
That's just sick!
What would any nation have to do to receive such an inhuman and depraved response? Do you realize how toxic detonated lawyers would be? Their society would be finished!
Having had a few opportunities to be on juries and sit through trials, I have absolutely no faith in lawyer's ethics. Every performance was basically out-maneuvering the opponent, distorting the facts to make them look other than they were and an unbelievable amount of obfuscation. It was pathetic, annoying,and scary--especially to see judges allowing this and other jury members completely incapable of any degree of critical thinking to help them navigate the deliberate manipulation of facts.
These are the people Nader hopes will get out there and fight for our rights? Come ON, Ralph! They're too invested.