Common Sense Hailed As Innovation.

To give everyone an idea how backward healthcare administration is in this country, read the following report touting the bold innovation instituted by CIGNA, making Quicken software available to some its members.

Only now, under the treat of regulation, does one the nation’s largest carriers make a step to help members organize their own healthcare records by offering access to a software program widely available to the public for decades. We’ve got a long way to go to fix this mess.

Story:

http://www.healthcarefinancenews.com/news/cigna-makes-quicken-software-available-health-plans

A Root of the Problem

Great article below uncovering a root of our current financial disaster.  The euphoria of prosperity clouded reason.  Despite the hysteria, a few were wise enough to see the inherent dangers and voice their dissent.

We must never forget that the past is a guide to our future.

http://www.nytimes.com/1999/11/05/business/congress-passes-wide-ranging-bill-easing-bank-laws.html

Numbers without Meaning

Numbers without Meaning

I’ve been avoiding the furor over bailout spending and executive payouts for 2 reasons, previous coverage and exhaustion.  After dedicating much of this space to TARP earlier in the year, I was pleased to see the media push the issue into the spotlight.  The story is now ubiquitous, cavernous, incessant, and, despite my contempt for corruption, I’ve grown weary.  But the story below has blown my mind and made the wound fresh again.

Apparently Goldman Sachs is planning to return its TARP funds by mid-April.  The move is not the result of any newfound stability within the operation.  Instead, it is a means to avoid public scorn for being a corrupt, inept, and disorganized institution completely out of step with reality.  Rather than acknowledge nationwide frustration with a company that saw its net-worth plummet into oblivion while at the same time setting a record for executive compensation, Goldman Sachs hopes to obscure itself from its role in sinking the country by giving back the $10 billion in TARP funds that were absolutely essential for their survival just a few months ago.  By giving the money back, the bank hopes to escape from the public relations disaster.  And they are not alone, JP Morgan Chase, who plan to spend $138 million on two new corporate jets and a luxury airport hangar, also plan to return their TARP funds to the government.  Once they do, they’ll go ahead and finish their air travel upgrade, free of any public dissention.  After all, Jaime Dimon, JP Morgan’s CEO was quoted just two weeks ago saying, “When I hear the constant vilification of corporate America I personally don’t understand it.” Clearly.

Of course you don’t, Jaime, neither do any of your colleagues.  What is more troubling is that none of you are willing to understand it.  The bailout was intended to keep the foundations of our economy intact by keeping your businesses alive. Now, more than ever, it is clear you should have been allowed to fail (that would have been better for you, as then your bonuses never would have been under the threat of congressional rescission).  You refuse to learn from your mistakes and develop better, more efficient business models.  You are intent on running everything straight into the ground so long as you can continue to line your overstuffed pockets.  You claim that bonuses are essential to retain your top talent. Your companies have all devalued and eroded the global economy, you don’t have any talent.  You did not require government funding, you just got in line for free money that the government never should have offered.  But you took it, saying it was necessary.  Now, under pressure for inept practices, you are eager to return it, despite no considerable gains in your performance. You have no credibility, no integrity, and deserve no respect.  Oblivious to the frustration of millions, whose lives are stalled and even destroyed by your greed; continue on in your opulent, wayward, stupor.  You are worthless.

Goldman Sachs to Return TARP Funds by Mid-April:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aW2jw0bHcg3s&refer=home

JP Morgan Chase Spending Millions on New Jets and Luxury Private Airport Hangar

http://abcnews.go.com/Blotter/WallStreet/story?id=7146474&page=1

Chase Will Repay TARP Funds Before Making Jet Purchase:

http://dealbook.blogs.nytimes.com/2009/03/23/jpmorgan-to-proceed-with-new-jets-and-hangar/?hp

Rather Then Let It Crumble, Take It Down Brick By Brick

Rather Then Let It Crumble, Take It Down Brick By Brick

These days it is hard to look at the news without feeling daunted, dismayed, or disgusted.  Most stories, particularly anything involving financial services, cause us to feel all three.  I have been rendered inert by the preponderance of bad news flooding our society.  Revelations of corruption, extortion, and moral ambiguity by what were once seen as conservative pillars of responsibility have become so extensive that it is hard to know where to start.  Yet it is therefore a time when it has become more important than ever to be engaged and voice opinions.  Otherwise these travesties will continue on, and in greater number than they already have.  That is the lesson learned from the fleeting outrage brought by the collapse of Enron, Tyco, and WorldCom earlier this decade.  After only 5 years, we have been besieged by the complete pollution of the American finance, auto, and insurance industries.  Corruption is inherent in mankind and therefore eternal, but it can be tempered by an active society.  Technology has enabled us to find more forums, this blog being an example, but it has also allowed us to withdraw further into isolation with ipods, blackberries, and cell phones.  With multiple outlets, it is increasingly difficult to find a wide audience.  Major media outlets are all controlled by large corporations and have their own agendas, and when a comedian like Jon Stewart provides the loudest voice for journalistic integrity it is clear we are living in a state of decay.  But rather than succumb to the pollution that surrounds us we should root it out, reconstruct, and build anew.  This is an unprecedented time that requires renewed and profound vigilance.  All is not lost, there is still positive to be found, Jon Stewart being an example.  His frustration should inspire greater concert to us all to speak up and become involved.  Let the outcry shake out the corrupt in our government and our industries.  Let them hear from us on the streets and in our offices, as well as on the web.  This November marked a major step for change in our political system, but necessary work ahead will not be done solely by who in office.  We have to remain engaged for anything positive to take shape.  Prosperity will not be delivered, it is up to us to create it.

Ousted

Ousted

 

After solidifying Merrill Lynch’s depth charge acquisition by Bank of America, former Merrill CEO and unabashed bonus seeker John Thain is rightfully out of work.  After pulling in over $54 in 2007 from Goldman Sachs, Thain accepted a $15 million signing bonus to become CEO of Merrill Lynch.  In his short time there, he dutifully spent $1.2 million redecorating his office to ensure a comfortable perch to watch as the near century old Merrill steadily moved toward the brink of collapse.  In September, Thain and Kenneth Lewis negotiated the merger of Merrill Lynch with Bank of America; a move that has been nothing but an albatross to B of A.  Despite the precipitous decline of Bank of America based on the poor financial markets and toxic assets of Merrill Lynch, Thain still had the voracious audacity to request a $10 million bonus from the board for his efforts.

 

John Thain was formerly known as a Mr. Fixit, now he should be rightly seen as nothing more than an avaricious parasite seeking to gain from the world’s losses.  A man completely out of touch with his position, oblivious to the responsibility he held for his own workers as well as the general public.  Of course he has already made more money than can be spent in a lifetime, but he should not be allowed to disappear into affluent anonymity. He should rightly become a punchline.  The man is a disgrace who encapsulates the endemic greed that has poisoned and sunk our economy.   No, he is not alone, but his defiant gluttony has brought unwanted fame that business schools and mentors should never allow to fade.  Here is an example of what not to do, of who to guard against, in every business arena.  Think of the jobs that were lost under his distorted and myopic tenure.  Think of how many jobs could have been saved by remunerating just his 2008 signing bonus.  These are the kind of lessons we need to learn from this trying time.  Yes, greed is inherent in humanity and will never be rooted out.  But we can see the poison of greed in our corporate system as we pay its ever increasing cost.  Each day brings more headache and greater struggle to millions; people like John Thain are at the root of the evil.  Do not forget the trustees who granted these salaries, and all the other executives straining for their own share of the pelf.  This whole culture has to change, and that requires public outrage and vigilance.  We have not seen the worst of it yet, but each day someone like Thain is ousted is a step in the right direction.  Good riddance.

 

John Thain Agrees to Leave Bank of America

http://www.bloomberg.com/apps/news?pid=20601087&sid=apwXZlxMaUm4&refer=home

 

Initiative

Initiative

 

Today is certainly a day of change and progress in the United States of America.  President Obama’s unprecedented victory is cemented.  Now is the time for leadership and action.  Our new president made a bold step by immediately addressing the myriad of challenges facing our nation.  He did not shy away from a crippled economy, overtaxed military, and tarnished global reputation.  Yet he did relent in his pledge to lead this nation in overcoming these factors.  Change will not come overnight, and will not be single handed.  Our lethargy and pride have enabled captains of industry to hollow out our economy with their greed, and our previous leaders to dupe us into believing in an immediate military threat.  Now comes a time for shared vigilance.  Our new president has addressed these challenges, and asked us, as a nation, to respond in concert.   Progress will take time, and require maximum effort, but with that effort hope can overturn despair.  This is the promise of leadership.  There are no guarantees.  But the goal is outlined.  Today we begin anew.