TheCharlie2323
  • Satirical Shorts
  • Other Tales
  • Banterer
  • Poems / Archives

Lead Abatement

5/22/2013

0 Comments

 
When viewing the toxic effect a leader is having on an environment, a cover-up is often seen as the first course of action.  If enclosure doesn't make sense, steps are taken to remove power.  The cost involved may be the best way to determine which method to apply.  Last but not least, clean-up of all the invisible relics must be done to prevent further damage of the stripped lead.

In the case of the IRS targeting Republicans, a cover-up is the first topic investigated by all journalists in hopes of a good story.  The White House claims they couldn't intervene, since they were not made aware of the scandal until it had passed.  Republicans have always pushed for fewer taxes.  The move to target republican names for tax exempt status, while a bold one, was claimed to derive from mismanagement rather than criminal behavior.

A cover-up's highest cost is reputation.  The IRS may not be concerned with how favorable they appear in the eye of the public, however the case reflects poorly upon the administration and President Obama.  A man in his position could definitely see the savings of calling for the inspector general's resignation.  Republican Speaker of the House, John Boehner, wants to see jail time as opposed to resignations.  (Dixon, 2013)  President Obama's efforts in working with the republican house may have been made more difficult with news of the IRS targeting.

As for the clean-up, IRS official Lois Lerner has pleaded the 5th.  While Stating that her lawyer had advised against her answering questions that may be self-incriminating, she did take the time to read a statement declaring her innocence.  (Cohen, 2013)  Perhaps her entire appearance should be stricken from the record, but kudos to her for concealing a matter while leaving in the mind of the jurors the statement of innocence.

A brighter tomorrow is not always a greener one.  Once this scandal is behind us, there may be less green in the IRS environment, as an increase of tax exempt status for the republicans' means less tax dollars collected.
  

Works Cited
Cohen, T. (13, 05 22). IRS official takes the 5th at congressional hearing. Retrieved 05 22, 2013, from CNN:
http://www.cnn.com/2013/05/22/politics/irs-targeting/index.html?eref=rss_mostpopular
Dixon, M. S. (13, 05 16). Tax chief forced out in IRS scandal. Retrieved 05 22, 2013, from Reuters:
http://www.reuters.com/article/2013/05/16/us-usa-obama-irs-statement-idUSBRE94E1EA20130516

0 Comments

The Coal Train

5/8/2013

0 Comments

 
“Every coach, every executive, every leader: They all know right from wrong.  Even those Enron guys. When someone uncovers a scandal in their company, I don't think they can say, "I didn't know that was going on." They're just saying they're too dumb to do their job! And if they really are too dumb, then why are they getting paid millions of dollars to do it? They know what's going on.” ― Bo Schembechler, Bo's Lasting Lessons: The Legendary Coach Teaches the Timeless Fundamentals of Leadership (Quotes about Enron, 2013)

The procession of the board directors at JPMorgan Chase is illustrated by accusations of the major bank rigging energy markets.  This board encourages voters to keep the locomotive running along the same track, as a vote for reelection approaches for the board of directors.  However, the Institutional Shareholder Services (ISS) along with Glass Lewis and Co., a major shareholder advisory firm both suggest a derailing. They suggest voting against the current risk management committee, as well as less power for President and CEO, Jamie Dimon. (Vardi, 2013)

Charles Peabody, president of an independent research firm which also provides analyses on banks, disagrees with disturbing Mr. Dimon’s dual roles.  Mr. Dimon had previously mentioned that he wouldn’t have accepted the position of CEO, if he wasn’t also on the board of directors.  Mr. Peabody suggests that removing the board of directors role could cause Mr. Dimon to cut ties early with the bank.  Since the bank’s stock currently holds a premium value, according to Mr. Peabody, that value may be diminished. (Kopecki, 2013) 
 
The bank has been able to hedge losses and continue to profit with Jamie Dimon in a dual role.  How important is the role of risk management, when the hedge is the energy market.  In determining the appealing pricing for the energy markets, they may have counted on the monsoons to replenish the renewable energy sources, while forgetting about the downside of blackouts.  Market manipulation of energy plants was the cause of the electricity shortage during the Enron era.  Rolling blackouts led to the discovery the company was hiding debt in the billions from their investors.  Even with the Enron lesson over a decade ago, JPMorgan Chase may have seen it has a way to profit after the London Whale loss of 2012.  
 
In the scenario where Jamie Dimon is CEO, but another is Chairman, CEO Dimon has someone to answer to.  The man with the giant ego resigns with the loss of power.  The current risk management team is fired for not being properly educated on what is considered risk.  The bank’s assets are saved.  Mr. Peabody is still fixed on the idea that the stock is no longer premium.  He’ll say, “This isn’t Enron, it’s the biggest bank in America and you’re destroying the stock.”  Never mind you, before Enron’s stock was worthless it held a value of more than $90 per share.  
 
With the scenario in which this train doesn’t switch tracks, Jamie Dimon keeps the power of both positions.  He continues to brush off those who suggest trouble on the horizon with his investment risks.  He keeps his current risk management team, who has the ability to overlook risk and take a chance.  They have a few options for investments, hedge funds or proprietary trading, they’re both risky but hold the potential for big profits if bet on correctly.  “Oh, no, another loss, how did the risk team miss that one?”  The bank fails.  After numerous senate hearings, hindsight indicates the importance of the Volkner Rule, “which would bar most proprietary trading by deposit-taking institutions.”  (Erik Schatzker, 2013)  Several of the chief officers and board of directors do time for the white collar crime that led to the big bank’s bankruptcy.  
   
A device set to detonate from the top of the rail car, is meant to signal danger for the crew members, not blow up in their faces.  The investors were given a warning in 2012, with the London Whale loss.  It seems the torpedo has fired off a second warning, with the recent news of rigging the energy markets.  We will learn the shareholders decision for the board of directors, once all the votes are in on May 21, 2013.  It is then up to the board of directors, if they would like to vote along the lines of the shareholders or keep going down the same track.  
 
Works Cited
Quotes about Enron. (2013). Retrieved May 07, 2013, from goodreads:  http://www.goodreads.com/quotes/tag/enron
Erik Schatzker, D. K. (2013, June 14). Jamie Dimon's Risky Business. Retrieved May 08, 2013, from Bloomberg:
http://www.businessweek.com/articles/2012-06-14/jamie-dimons-risky-business#p2
Kopecki, D. (2013, May 04). JPMorgan Investors Urged to Split Chairman Role, Oust Directors. Retrieved May 07, 2013, from Bloomberg: http://www.bloomberg.com/news/2013-05-04/jpmorgan-should-name-chairman-to-watch-ceo-iss-tells-investors.html
Vardi, N. (2013, May 07). The Revolt Against Jamie Dimon. Retrieved May 07, 2013, from Forbes:
http://www.forbes.com/sites/nathanvardi/2013/05/07/the-revolt-against-jamie-dimon/




 
0 Comments

    Author

    My banter was on current affairs and ran from 2011 - 2016. I currently enjoy writing satire and horror shorts.

    I chose themes to run against each current event to bring some entertainment to my Banters. I began writing the banter in February 2011, and wrote my last in February 2016.

    Archives

    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011

    Categories

    All
    2011
    4th Amendment
    5-4
    Aaa
    Administration
    Aer Lingus
    Aol
    Arizona
    Bailouts
    Barclays
    Bassar Al-Assad
    Benghazi
    Berlusconi
    Bin Laden
    Boehner
    Bryson
    Buffett Rule
    Caucuses
    Cheif Of Staff
    China
    Chris Christie
    Citibank
    Citigroup
    Commerce
    Daley
    Deutsche
    Dez Bryant
    Draft
    Economy
    Engagement
    Euro
    Facebook Ipo
    Fannie Mae
    Fed
    Federal Reserve
    Freddie Mac
    Ftc
    "Game Change"
    Geithner
    Gingrich
    Goldman Sachs
    Gop
    Governor Walker
    Henry Paulson
    Huffington Post
    Hugh Culverhouse
    Immigration
    Iran-Contra
    Ireland
    Italy
    John Paulson
    Jon Corzine
    Lew
    Lockout
    Madoff
    Mets
    Michael Grimes
    Michael Hayden
    Millionaire Tax
    Mitt Romney
    Monti
    Muddy Waters
    News Of The World
    Nfl
    Nothaus
    Obama
    Ochocinco
    Pay For Performance
    Pelosi
    Picard
    Presidential Race
    Rakoff
    Referee Lockout
    Richard Grenell
    Romney
    Romneycare
    Russia
    Sarah Palin
    Sec
    S&P
    Technocracy
    Trust In God
    Union
    Veto
    Vikram Pandit
    Wisconsin

     Subscribe in a reader

    Thecharlie2323.com Pagerank