Juggling Dynamite

Recently some fellow 50-something friends and I were expressing the pure joy of riding our bikes.  Whether touring other places or around my home town, I reconnect with the energy and optimism of my 12 year old self on a bike.   Carbon-free, good for body, soul and mind–apparently such adoration has a long tradition.  This lovely article explains,  see Cycling as a cure for creative block:  a charming 1926 case for why the bicycle is the ideal vehicle for writers.  May we ride more and feel old less.

 “When I see an adult on a bicycle, I do not despair for the future of the human race.”                                             –H.G. Wells

Having laid back and surfed the wave of easy money during the late great commodities supercycle 2001-2011 (courtesy of the greatest consumer credit/derivatives/China bubble ever in history–now bursting), Canada missed retooling (under the oil-focused Harper government) to a more productive, diversified economy.  Now we are paying the economic price and are likely to continue to for some time.  It will be no easy or quick fix.  But with the overhang of excess capacity, goods and materials still mammoth in the world,  and the US dollar in a secular strengthening mode,  the next commodities boom is likely many years away.  Necessity is the mother of invention.  Luckily we really have no choice but to get a lot more efficient and creative from here.

The two-year oil slump has mired Canada in one of the weakest stretches of growth in its history. So there’s some urgency to the search for alternative models. Here is a direct video link.

Consolidating since April, the Canadian dollar may well wobble longer yet, especially as our high debt and vulnerable property markets become a topic of international concern.

This is truly a remarkable example to set:  a former risk officer,  Eric Ben-Artzi, turned Deutsche Bank whistleblower, has refused to collect his $8.5 million reward from the SEC.  He points out that levying a $55 million fine for illegal activities on the corporation has only served to penalize shareholders and employees while letting the firms executives and lawyers (the directing minds) keep all their status and proceeds of crime (bonuses and fees).  Bravo Mr. Ben-Artzi.  See We must protect shareholders from executive wrongdoing:

“Although I need the money now more than ever, I will not join the looting of the very people I was hired to protect. I never intended to turn a job in risk management into a crusade, but after suffering at the hands of the Deutsche executives I will not join them simply because I cannot beat them.

I request that my share of the award be given to Deutsche and its stakeholders, and the award money clawed back from the bonuses paid to the Deutsche executives, especially the former top SEC attorneys.

I would then be happy to collect any award for which I am eligible.”

Why does the SEC routinely choose to only fine offending corporations while letting the directing executives off scot-free?  Because the public allows outrageous nepotism and conflicts of interest to continue unchecked between finance/regulators/politicians. What will it take for we, the people, to force change?  Ben-Artzi lays it out it in plain language:

Deutsche’s top lawyers “revolved” in and out of the SEC before, during and after the illegal activity at the bank. Robert Rice, the chief lawyer in charge of the internal investigation at Deutsche in 2011, became the SEC’s chief counsel in 2013. Robert Khuzami, Deutsche’s top lawyer in North America, became head of the SEC’s enforcement division after the financial crisis. Their boss, Richard Walker, the bank’s longtime general counsel (he left the bank this year) was once head of enforcement at the SEC.

This goes beyond the typical revolving door story. In this case, top SEC lawyers had held senior posts at the bank, moving in and out of top positions at the regulator even as the investigations into malfeasance at Deutsche were ongoing.

This took place on the watch of Mary Jo White, the current chair of the SEC, whose relationship with Mr Khuzami and Mr Rice dates back 20 years. She bears ultimate responsibility for the Deutsche fine.