Sunday, September 28, 2008

Where do I sign? - now that I'm a fiduciary (to the US Taxpayer)

Prudent fiduciary governance applicable to the US Treasury (for and on behalf of the US Taxpayer) requires a signed written acknowledgement of fiduciary responsibility from the Wall St firms, banks or other financial institutions which are to receive cash from the US Treasury.

Lets see how many firms do so.
  1. Let's see how the US treasury uses this historic event as a-once-in-a-lifetime opportunity for learning / educational tool for ALL investors.
  2. That an upfront planning process is critical.
  3. That the asset to liability match is critical.
  4. That full disclosure (Reg. FD) is the best disinfectant to financial accounting issues; off balance sheet financing / insurance is a slippery slope.  Let the analysts do what they do best; analyze board and management representations.
  5. That diversification is more important than profits.
  6. That a respectable business reputation is earned every day; the result of a cycle of evidence-based continuous improvement in people, process and philosophy.
  7. That fiduciaries raise their hands when they FIRST realize that they can't outperform a benchmark or other investment mandate; inform the beneficiary it's now time to consider another asset manager.
  8. That protecting, taking steps to insure the return OF and the return ON US Taxpayer monies is more important than supporting a financial institution or insurance company.
  9. That "protecting" US financial institutions does not require so much NEW regulation; NEW regulators; rather enforcing existing - example; not all banks got into trouble; JP Morgan is the most prominent example of a money center bank - it's management chose (an action verb!) NOT to use as much leverage as their competitors.
  10. That the interests of the US Taxpayer / beneficiaries be in UNdisputed first place; not best interests; SOLE interests.

It's all about protecting the interests of the US Taxpayer!
Prudent Fiduciary Governance is where it begins. 

No comments: