How to Fix a Fundamentally Broken Global Financial System
by Theodore Roosevelt Malloch and Jordan D. Mamorsky
SINGAPORE, April 26, 2013 – In this new book by Theodore Roosevelt Malloch, Research Professor for the Spiritual Capital Initiative at Yale University and Jordan Mamorsky, attorney and Yale University postdoctoral fellow, The End of Ethics and a Way Back makes an impassioned call for an end to corrupt and irresponsible practices and the restoration of a more virtuous, ethics-based version of capitalism. It delivers a penetrating, at times controversial analysis of the demise of virtuous capitalism, and a road map for achieving a return to ethics, virtue, and sustainable economic growth. The End of Ethics and a Way Back is a must-read for lawmakers, financial regulators, financial advisors and auditors, journalists and media commentators, and all thoughtful observers of current affairs.
The authors explore some of the most outrageous recent examples of financial vice, including the London Interbank Borrowing Rate (LIBOR) scandal, the demise of Lehman Brothers and Bear Stearns, ratings agency corruption, John Corzine’s MF Global, Tyco, and Bernie Madoff’s two-decade Ponzi scheme, among others. In a series of compelling case studies, Malloch and Mamorsky chronicle how those organizations and their leaders lost their way and the havoc their reckless, often criminal activities wreaked globally, before offering a set of structural and holistic solutions for our current ethical crisis in global governance.
They propound well-reasoned solutions to problems deeply embedded in global markets and corporate cultures, including:
- Restructure the U.S. Securities and Exchange Commission and staff it with better qualified, better compensated investigators
- Institute new rules of the financial game, beginning with reinstitution of Glass-Steagall
- Take the exotic derivatives market in hand, including the aggressive regulation of Credit Default Swaps
- Devise aggressive new accounting rules to curtail accounting gimmickry and “shadow banking” leading to off-balance sheet risk
- Reign in the commodities markets with better and more frequent regulatory audits and smarter corporate governance
- Implement stronger fiduciary standards and enhanced transparency for retail investors
While overwhelming pressure is placed on the modern-day large corporations, critics of capitalism view them as insatiable masters of the universe, answer only to shareholders, with no consideration for the human rights, social and environmental issues. According to Malloch, “To appease investors and shareholders, executives have turned to the proverbial performance-enhancing drugs: what we will call economic vice. Economic vice produces artificial home runs for shareholders and creates unrealistic market expectations.”
The End of Ethics and a Way Back is now available for purchase online and at retailers nationwide in both print and all e-book formats. For a list of retailers, visit http://www.wiley.com/buy/9781118550175.