The Anglo-Persian Oil Company was created in 1903. It was a British company that forged a tempestuous relationship with Iran that ultimately led to the Iranian nationalization of it oil resources in 1951. When the oil company was reborn, it became British Petroleum and is now known as BP. The relationship between the British government and BP is long-standing–for a long time, there were always two representatives of the British government on the Board of Directors, and the British government had a veto over all company operations that affected British foreign relations. That formal cozy relationship over time became more “Americanized” as the institutional links between government and oil companies became a matter of personal relationships and unstated assumptions for both government and companies. The legacy of that relationship is quite pronounced in the current operations of BP. The issue is quite delicate when it comes to the public concerns over carbon emissions.
Malaysia and Indonesia have stated that they are willing to offer “temporary” assistance to Rohingya refugees, but that they would not take any more refugees other than the 3,000 already rescued. The move is a partial victory for the refugees who have been sailing around in search of any country to take them in. Thailand has refused to offer even temporary shelter. The rich countries, such as the US, are willing to grant financial assistance, but have not indicated any willingness to offer sanctuary to any of the refugees. The tragedy continues.
Seven years after the onset of the Great Recession, some have begun to ask the question of whether any lessons were learned from the near-collapse of the financial industry. There have been some efforts, most notably in the Dodd-Frank legislation that attempt to regulate the worst behavior of the financial firms that cost the global economy close to $7 trillion in 2008-09. Unfortunately, the answer seems to be no. A report by the University of Notre Dame, commissioned by the law firm Labaton Sucharow “surveyed more than 1,200 people in the financial-services industry—account executives, wealth advisors, financial analysts, investment bankers, operations managers, and portfolio managers—in both the U.S. and the U.K. to look at whether increased regulations, along with calls for a cultural change, have had any demonstrable effects.” According to Bourree Lam:
“So how does the financial-services industry view its own behavior, legally and ethically? Not so great, it turns out. Nearly half of the respondents felt that it was likely that a competitor has engaged in unethical or illegal activity in order to gain an edge. Perhaps more shocking are those who say they’ve witnessed such wrongdoing: 23 percent reported personally observing or having firsthand knowledge of misdeeds. That number jumps to 34 percent when looking only at those earning more than $500,000, suggesting that enhanced status and earnings bring a higher likelihood of witnessing wrongdoing.”
I suspect we should prepare to get ready for the Great Recession, Part 2.
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