October 24, 2009

Deep Thought

If, as Aristotle says, it's impossible to do injustice to oneself (since no one suffers injustice willingly) then is it also impossible for a corporation to do injustice to itself?

If so, then the only ethical obligation any person (or corporation) has is toward others.

October 20, 2009

Volcker seeks return of Glass-Steagall

And it's about time! Here's an excerpt from the full NYT article:

"Glass-Steagall was watered down over the years and finally revoked in 1999. In the Volcker resurrection, commercial banks would take deposits, manage the nation’s payments system, make standard loans and even trade securities for their customers — just not for themselves. The government, in return, would rescue banks that fail.

On the other side of the wall, investment houses would be free to buy and sell securities for their own accounts, borrowing to leverage these trades and thus multiplying the profits, and the risks.

Being separated from banks, the investment houses would no longer have access to federally insured deposits to finance this trading. If one failed, the government would supervise an orderly liquidation. None would be too big to fail — a designation that could arise for a handful of institutions under the administration’s proposal.

“People say I’m old-fashioned and banks can no longer be separated from nonbank activity,” Mr. Volcker said, acknowledging criticism that he is nostalgic for an earlier era. “That argument,” he added ruefully, “brought us to where we are today.”"