DAVID MCCANN – At a time when news of banking scandals is uncomfortably frequent, a new report says that last year only 17% of global banking organizations â€œclawed backâ€ compensation payments previously made to employees. The survey of financial-services institutions by the consulting firm Mercer was not expansive, with only 42 banks participating (in addition to 18 insurance companies and three other types of firms). Still, the results may suggest that regulators are not achieving the objectives of their persistent calls for banks to implement clawback policies.
Obama Touts Transparency but Negotiates Secret Trade Deal
LORI WALLACH – On Sept. 6, as President Barack Obama promised jobs and transparency in his Democratic National Convention acceptance speech, his top trade officials were cloistered in conditions of extreme secrecy at the Lansdowne resort in Leesburg, Va., negotiating a massive â€œtradeâ€ agreement that will promote more U.S. job offshoring and ban Buy American procurement preferences.
Looks Like the 1% is Going to Get Away with It
PETER J. HENNINGS – The criminal investigation was prompted by a referral from the Senateâ€™s Permanent Subcommittee on Investigations, based on its 635-page report on the financial crisis that included details on Goldmanâ€™s transactions in mortgage-backed securities. The report highlighted potential conflicts of interest in how Goldman dealt with its clients and questioned whether Mr. Blankfein testified truthfully at an April 2010 subcommittee hearing when he said that the firm did not have a â€œmassive shortâ€ position to bet on a decline the housing market.