Category Archives: corruption

What is wrong here

X-posted at my class blog.

“Retention bonuses” would seem to be bonuses by any other name.  Obviously, public and political scrutiny is at super high levels as we reel from the financial crisis.

This little nugget caught my eye about a joint venture between Citigroup and Morgan Stanley:

According to the newspaper [The WSJ], not all of the joint venture’s 20,000 brokers would get retention payments. It said a broker who brought in $1 million in revenue last year might expect to get $500,000 to $1 million, depending on how much he continues to produce.

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Filed under Banking, corporate governance, corruption, economics, Government, Political Economy

Wolfowitz’ Hypocrisy

Paul Wolfowitz, apparently a genius, “architect” of the Iraq policy,  former Deputy Secretary of Defense, placed fighting corruption at the top of his World Bank Agenda.  And I agree with him.  Corruption weakens the institutional framework for democracy and effective markets.  Too bad he is bald-faced hypocrite:

Wolfowitz Apologizes For ‘Mistake’ – washingtonpost.com
World Bank President Paul D. Wolfowitz publicly apologized yesterday for the “mistake” of personally orchestrating a high-paying job and guaranteed promotions for a bank employee with whom he is romantically involved, as new details of his role in the arrangement emerged and staff members angrily demanded his resignation.

Will his super star status among the media and policy elites finally come down a notch?  Not only do his actions smack of nepotism and corruption, but he arrogantly commanded the World Bank to guarantee  her the highest possible performance review.  Is this the kind of meritocracy and integrity he learned in that vaunted temple of free market economics, the Univeristy of Chicago?   I hope not.  The best we can hope for is he developed this coat of slime in the normal gutters: government and politics.  What a great choice to have to make (sarcastically).

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