Tag Archives: core issues

From BP and Wall St – Corporate culture impacts performance

The examples in today’s news of the disconnect between the values a company states and the values it lives teach the lesson that poor company values can lead to poor company performance – and vice-versa.

BP is living the corporate image nightmare. A company with a terrific ad campaign “beyond petroleum” (you’d think the company was all about being green) and now another terrible disaster. But the core issues are not new and they are rooted in the culture and values of the company. BP was blasted in 2007 following a congressional committee investigation where they were found to have ignored audits and underspent on maintenance in order to meet aggressive cost cutting goals. Even in late 2009 BP made strong statements in a video about the safety of offshore oil drilling for the environment as the new administration appeared to be weakening on the issue, but now, today, no amount of ad dollars and slogans can quickly recover their reputation or their stock price.

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A New Approach to the Israeli-Palestinian Proximity Talks

The idea sweeping Washington over recent weeks has been the notion that the President should release an Obama Plan, or a set of Principles, or a Statement, outlining where the US stands on all the core issues in the Israeli-Palestinian dispute (Jerusalem, refugees, borders, and security). The National Security Advisor, James Jones, and many of his predecessors reportedly favor it; so do many Mideast specialists and former officials. This is a very appealing notion especially given the frustrations the US now confronts in trying to get both sides to talk, even indirectly, in “proximity talks” to be conducted by the United States. Since the administration has not been able to start negotiations, shake the two sides up, the argument goes, and force them to focus on the issues instead of the procedures for moving forward. Just shove an American conception in their face, and they’ll start paying attention alright.

There is no question that bridging proposals or American ideas privately presented can save talks, and will undoubtedly be necessary earlier rather than later once negotiations begin. The Clinton Parameters that such a plan might resemble were privately presented to the two sides in the last few weeks of the administration. They might actually have worked if the parties had reached that stage earlier in the President’s term. But in a situation in which the two sides, especially the leaders, distrust each other, are suspicious of the Obama camp, and both are preoccupied with their internal problems, the chances of either accepting an “Obama Plan” are slim indeed. The far more likely scenario is that both sides will reject the President’s approach out of hand, leaving him weaker than before and less able to organize talks. Once the President has released his own “plan”, and it is rejected, where do we go from there?

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Stopping Too Big to Fail is Vital to a Healthy Economy

Just because our financial system is becoming more complex and interconnected does not necessarily mean the institutions within it must follow suit by becoming larger. Complexity, interconnectedness, and size became core issues as the financial crisis unfolded and continue to plague our financial system. Despite assurances from federal regulators and lawmakers large financial institutions with concentrated positions in risky assets continue to pose a significant threat to our still fragile financial markets.

As a former Georgia State Senator along with having served several roles in the community banking arena, I understand the concerns of the small investor, the retiree, and even the student in need of a loan. And as these constituents continue to play a vital role in the framework of society, I find it critical that their desire for financial safety become a priority as our nation develops financial reform measures. I am inspired to lead the organization, ‘Stop Too Big to Fail’ for this reason; the root of reform must begin by breaking up too-big-to-fail banks, thereby ending the notion that a single institution can pose a systemic and catastrophic risk.

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