Showing posts with label Banking. Show all posts
Showing posts with label Banking. Show all posts

Tuesday, September 25, 2012

NFL Zebras Not the Only Animals in Owners' Sights

Hey, d'ja see the Packers-Seahawks game last night?  Cool how it ended, huh?

The NFL replacement officials are in way over their heads - so far that the integrity of the entire league is in question.  Evidence of their incompetence arises in every quarter, if not in every set of downs.  But, it's time to refocus: it's their employer, NFL Commissioner Roger Goodell, who planned the current lockout of the regular referees, in collaboration with certain activist owners; it's Goodell who hired the replacement refs, put them on the football field, gave them a whistle, and let them loose with insufficient training and experience; and it's Goodell and this handful of owners who are the only remaining parties to insist that nothing is wrong with the status quo.

There's obviously more to the NFL owners' posture in the current lockout of the regular referees than just the cost savings at stake, a relative pittance; else the league would have ended the lockout unilaterally after Week 1.  That they haven't suggests the following motivations:

(1) PRECEDENT: Not only does a hard-line posture toward the regular referees demonstrate the owners' resolve in the instant dispute; in their minds, it likely also sets a precedent for future contract negotiations with the Players' Association, a much bigger economic opportunity.  It also signals a strategic rigidity with respect to labor unions and salaried workforces in general, both in the owners' non-NFL businesses and in American society at-large.  The message: Negotiation itself is off the table.
 
(2) IDEOLOGY: The current generation of NFL owners came of age when President Ronald Reagan broke the Professional Air Traffic Controllers' Organization (PATCO) by hiring and training replacements.  As Paul F. Campos wrote today at Salon.com, appropriating the contemptuous jargon of ownership-class lionizer Ayn Rand and referencing her avid adherent: "Paul Ryan's beloved Packers were robbed last night -- because the owners are putting the 'moochers' in their place."

(3) PEER PRESSURE: Rigidity in the face of common sense allows the owners to display their boss-class status to and gain the affirmative, personal approval of their fellow sports team owners and business peers, whom they run into at Board meetings, Chamber of Commerce meetings, and country clubs and are, in fact, the only constituencies who actually matter to them.

(4) COMBATIVENESS: The hardened, combative societal attitudes evidenced first in America's so-called culture wars, then in its "red state-blue state" political divide now pervade all walks of life, including the business of sports.  An entire generation has grown up with categorical attitudes that are uninformed by critical thinking.

(5) LOMBARDI-ISM: (I could get exiled from Wisconsin for this.)  Former Packers coach and NFL demigod Vince Lombardi's famous line,"Winning isn't everything; it's the only thing [that matters]!" has been inflated to the status of received wisdom throughout American society.  It is, in fact, a sophomoric locker-room slogan, not an organizing principle for the modern world.

(6) VANITY: The owners continue, stubbornly and conceitedly, to deny a gross, strategic error that they have committed in public, as doing so would be an admission of their own fallibility; thereby compounding the problem.

(7) COLLUSION: The consistent pattern of the NFL, NBA, and NHL using nearly identical, hard-line labor tactics suggests that their executives are motivated by and doing the sector-wide bidding for the money-center banks, including Bank of America and Citibank, that serve the sports, media, and entertainment industries.  These financial players are often equity investors as well as the principal lenders to ownership groups.  Their influence in the sports world is an underreported story; whether they are also instigators in the recent spate of lockouts is a matter of speculation.

What troubles me most is that this infestation of hostile tactics toward players and officials could spread further.  In particular, Major League Baseball Commissioner Bud Selig's vaunted two-decade stretch of labor peace with the Baseball Players' Association, with no strike or lockout since the World Series washout of 1994, is surely threatened unless he and his eventual successor can wrangle MLB owners into a collective posture that does not rely principally upon the threat of work stoppages to achieve economic ends.

  *  *  *

UPDATE: After a 31-hour negotiating session following the Green Bay-Seattle game, the NFL and the NFL Referees Association agreed on the terms of a new, eight-year contract.



Friday, April 6, 2012

I See What He Did There

I'm through page 73 of For the Win, Cory Doctorow's 21st Century novel of multi-player virtual reality games and their intersection with bands of far-flung, carbon-based humans facing real, increasingly precarious predicaments.

Already, in fewer than 15% of the novel's rapidly readable pages, FTW has called to mind George Orwell's 1984, Norman Jewison's pithy short story, "Rollerball Murder" (later made into the violent future-sports movie, "Rollerball"), and Thomas Friedman's breathless economic globalism treatise, The World is Flat.

Then, without warning, Doctorow executes a perfect educational ambush and explains how financial arbitrage led to the mortgage and banking crisis of 2008, without ever using the words mortgage, banking, or collateralized debt obligations -- without even mentioning the historical events of 2008, in fact. He accomplishes this in only four pages, written at an eighth grade level, using vorpal blades, gaming gold, and other virtual treasure as currency to illustrate.

I'm now fully convinced of the author's powers. I'm hopeful that if I keep reading, I'll learn how to solve the Israeli-Palestinian conflict without using the word Jerusalem. I'm pretty sure a vorpal blade will be involved.


Friday, May 8, 2009

Jaguar Group

          Jaguar Group (allegedly)
          Borrowed millions from regional banks
          Secured by 92 properties
          To purchase subprime mortgages

          Jaguar Group (allegedly)
          Transferred or encumbered 52 properties
          Without telling the banks about it
          As was required contractually

          Jaguar Group (allegedly)
          Stopped making payments on the loans
          When the subprime mortgages
          Stopped performing economically

          The banks (understandably)
          Were surprised and none too happy
          When they learned that their collateral
          Wasn't there (allegedly)

          Lawsuit City (naturally)


Source: "Lenders Bitten by the Jaguar Group", Denver Business Journal, May 8, 2009.


Monday, April 13, 2009

You Never Can Lose, You Always Win

I'm not a jazz musician on a Saturday night bandstand. I don't have the talent to improvise nine or ten riffs around a recognizable theme before powering up with a Big Band flourish on the last verse while the beloved, Italian-American bandleader croaks out the familiar lyrics, wails out the climax, and takes a warm bow to scattered applause in the room.

But if I were, I'd arrange an 8-minute jam to the Schenectady Savings Bank's 30-second television commercial of the 1960's and 1970's, the one that's still lodged in my cranium like a crowbar:

          Get the most,
          Get the most,
          At Schenectady Savings Bank!
          It's the most,
          Yes the most,
          That's Schenectady Savings Bank!
          You never can lose, you always win
          When Schenectady's the bank you keep your money in!
          Get the most,
          Get the most,
          That's Schenectady Savings Bank!

God forbid this should be the last tune going through my mind when I pass away, but based on the commercial's reach and frequency when I was growing up, not to mention its penetrating melody and vocal harmonies, I wouldn't bet against it. It's not a bad little tune, actually; the syncopation is rather catchy. I'll take it over that cloying, ubiquitious Jared Jewelers jingle anytime. A toast to the composer -- wherever he may be banking now.

As for the lyrics: the careful observer will notice that there's some serious public policy embedded in the song's bridge, resulting in today's claims in perpetuity on taxpayer dollars. I'll bet Bernanke and Geithner wish they could musically improvise on that "never can lose" line right about now.

Schenectady Savings Bank eventually merged with Hartford Federal Savings & Loan in 1982; the combination was federalized and renamed Northeast Savings. Northeast Savings was bought out by Shawmut National Corp. in 1994; which merged into Fleet Financial Group in 1995; which in turn merged with BankBoston -- itself a 1996 merger of the Bank of Boston and BayBanks -- to form FleetBoston Financial in 1999. All of which was acquired by Bank of America in 2004.

In 2009, Bank of America, too big to fail, received $20 billion of taxpayer money and $118 billion in government guarantees against toxic assets.

Get the most? I'll say!


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