Monthly Archives: January 2016

January Edition of the JSFB: “Order & Chaos”

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Complexity and volatility seem to be the defining characteristics for global markets as we experience an extraordinarily challenging start to 2016.  In this season of extremes, we digest China macro concerns,  the trajectory for commodity prices, and an evolving geopolitical and economic landscape.  All the while, we try to assess how the capital markets can… Read more »

“Legitimacy” in the Banking Sector – Revisited

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In January 2015, we published a report introducing a framework to enable analysis of the “legitimacy” of an institution by understanding its relationships with stakeholders. We used the banking sector as our test case given the recency of the Global Financial Crisis, but the framework can be applied to any industry or institution. Given this edition’s focus on “Order and Chaos,” we felt it would be relevant to revisit our previous work. This article is an excerpt from the report.

Philanthropy, Markets and Transparency

Strong foundation concept as the roots of a plant shaped as a butterfly and the leaves of a bush in the shape of flying butterflies as a creative base symbol and the power of freedom and imagination.

Part private, part public, philanthropic foundations live in a twilight world in which their desire to have impact while keeping a low profile increasingly collides with growing public expectations for transparency. How this tension is negotiated will be crucial to the future of how private wealth contributes to the public good in America and around the world.

Ordering the Unknown

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Order and chaos – given the choice, humans would usually choose order. Sure, we love to explore, but as we do so we also love to categorize, to organize, to create boxes and silos of knowledge. M.C. Escher summarized these tendencies by noting, “We adore chaos because we love to produce order.”

Wilson and Karp on “Shareholder Alignment” in American Banker

The-Networked-Corporation_Stakeholder chart

In the late 1990s, some shareholders became concerned that new practices in subprime mortgage lending could harm low-income borrowers. Companies like Wells Fargo received shareholder resolutions asking them to adopt anti-predatory-lending policies. Wells engaged in discussions with the shareholders and ultimately implemented practices that helped keep its mortgage origination business relatively free of “toxic mortgages.”… Read more »