Society

Holding: Corporate America loves its bad Boies

10 Nov 2017

The lawyer David Boies may have helped disgraced mogul Harvey Weinstein try to hide his abuses, but don’t expect more than a shrug from the business world. In a realm that prizes results, the defender of the likes of ex-AIG boss Hank Greenberg will remain the go-to consigliere.

McKinsey needs to run a matrix on itself

10 Nov 2017

The consulting firm has been facing tough questions over hiring in Saudi, and work in South Africa. Neither helps its image. But more worrying is how data is making consulting a commodity. Doling out advice looks less valuable when one’s own business is struggling.

Review: The economic common good is hard to find

10 Nov 2017

Jean Tirole won the Nobel Prize for his work on regulating tricky industries. In “Economics for the Common Good” he takes on broader themes. Newcomers to current debates can learn from his general discussions, but the highlights are subtle descriptions of his area of expertise.

Yahoo ex-boss shows everyone’s in dark on hacks

8 Nov 2017

Marissa Mayer told senators she still doesn’t know who was behind a 2013 data theft affecting 3 bln users. Equifax’s CEO said the same of a breach involving 145 mln consumers. And Congress struggles to draft cyber rules. Amid such cluelessness, the epidemic can only get worse.

Ritz roundup is dark side of grand Saudi ambition

5 Nov 2017

The detention of elites including Prince Alwaleed in an anti-corruption drive may head off opposition to the crown prince's reforms. It could clear the way for initiatives like his $500 bln desert city. But it also makes needed underpinnings, like the rule of law, less credible.

The Exchange: Ellen Pao

2 Nov 2017

The investor sued Kleiner Perkins for discrimination, becoming a canary in the coal mine for a raft of sexual-harassment and gender-bias allegations rocking Silicon Valley, Hollywood and beyond. She discusses if this is a turning point for what she describes as a systemic problem.

UK gender pay equality drive is too easy to skirt

30 Oct 2017

Bigger employers have less than six months to disclose any difference between how much men and women earn. Transparency is supposed to help close the gap. But Austria has tried something similar to little effect. Only the threat of eventual sanctions will make a real difference.

Hadas: Greed is best indicator of financial crisis

26 Oct 2017

New research casts small-time property investors as the secret villains in the 2007 U.S. house price collapse. As usual, the love of leverage was the root of financial distress. Balance sheets are stronger today, but investors still haven’t learned the virtue of moderation.

Italy’s north teaches Catalonia a self-rule lesson

23 Oct 2017

Areas which bring in 30 pct of Italian GDP demanded more autonomy in a referendum. Lombardy and Veneto want to keep more tax revenue. But unlike the Spanish region they stopped short of demanding independence. Orderly voting and a clear outcome will force Rome to negotiate.

Hadas: Time to slay the free market-myth monster

19 Oct 2017

The oft-told story of vibrant private companies as economic heroes isn’t right, and the common tale of the incompetent state is equally wrong. A new group at University College London can help create a more accurate – and more complex – narrative. The economy is a shared project.

Sexual harassment forces way into the board room

18 Oct 2017

Harvey Weinstein’s movie studio is in tatters. Mighty Amazon is wrestling with the fallout from alleged misbehavior of a top executive. They're not alone. The mistreatment of women has swiftly moved from an HR issue to a serious business risk deserving of attention from the top.

Hadas: Economists need more psychological abuse

11 Oct 2017

Insights from the study of the mind helped Richard Thaler win the Nobel Prize in economics. The dismal science would benefit from more thoughtful analysis. Rules of thumb could help with investments, statistics would become less alien, while ethics could illuminate big decisions.

Review: Dani Rodrik gives economists a better name

6 Oct 2017

The mildly iconoclastic Harvard professor’s “Straight Talk on Trade” runs through several controversial claims, from praise of diversity in economic models to support for curbs on capital flows and unfair trade. His humility is admirable, even if his pessimism may be overdone.

Economic odds stacked against Catalonia breakaway

6 Oct 2017

On paper, independence looks viable for a wealthy region with GDP roughly the same as Finland’s. In reality, divorcing Spain would trigger harmful disputes over tax and debt. A Catalan central bank would lack the reserves to maintain confidence outside the euro zone.

Catalan banks fairly punished for wrong reason

4 Oct 2017

The prospect of Catalan independence has hit Barcelona-based lenders CaixaBank and Sabadell. A schism from Spain and the EU could trigger deposit runs and losses, but the risk of that is low. Stagnant interest rates and weak profitability are a bigger threat than self-rule.

Las Vegas tragedy strikes a U.S. inured to outrage

2 Oct 2017

Casino stocks fell and gunmakers’ jumped after the worst shooting in U.S. history left at least 50 dead. Horrific as it is, the incident is unlikely to impact gun laws, markets, political debate or voters’ minds. A deeply divided country will find it hard to mount a response.

Catalonia crisis is painful distraction for Spain

2 Oct 2017

Despite violent police intervention, the region’s vote to leave Spain is unlikely to trigger a breakup of the country. Yet the political unrest has damaged an already weak government and could strain public finances. Spain’s recovering economy needs a bigger political discount.

Equifax can’t even oust its failed CEO effectively

26 Sep 2017

Rick Smith is "retiring," as the euphemism goes, after a massive cyber attack and fumbled response - and with little financial penalty. The interim management plan makes clear the board hadn't planned succession adequately either. Equifax needs regime change at every level.

Cox: Donald Trump is failing America’s gun lobby

13 Sep 2017

The candidate's campaign messaging echoed the National Rifle Association's efforts to sow fear and sell weapons. Trump promised to "come through for" the NRA, which backed him. But a profit warning from Smith & Wesson’s parent and other signs suggest he’s not delivering.

Hadas: EU single economy eases way for separatism

13 Sep 2017

Catalan and Scottish nationalism have bubbled up recently. Besides sentiment, the European Union has played a part. The super-national single market not only provides economic protection, but opens up a new vision of sovereignty. It’s the same idea Brexit fans have rejected.