Column
Doug Roberts
The FreePassers Crisis
Overcoming the People and Practices
that will Undermine Your Company
in this Difficult Economic Environment
After this Presentation You Will Know:
• The REAL History of the Economic Crisis
• Why The FreePasser Mentality of
Unaccountability Was the Root Cause of
the Economic Crisis
• How to Eliminate the FreePasser from
Business, Government and Your Personal
Life
In times of crisis, there are two questions that need to be answered. How did we get here, and how do we get out of here? In our current economic crisis, the second question has been the focus of most economists, lobbyists, politicians, businesses and the public at large. From various stimulus packages to laissez faire, proposed solutions abound. But "how did we get here" requires identifying the responsible culprit: individual, societal, cultural, national, or ethical. To avoid repeating the same mistakes, we must determine how this multinational disaster occurred.
The Current Economic Crisis Was Created By FreePassers on Wall Street, Main Street and Our Elected Representatives: We Are All Complicit.
FreePassers reap the benefits of their position, but never suffer the consequences of their mistakes or misdeeds. They are the beneficiaries of a culture that rewards wretched excess and unaccountability. But as pervasive as they may be, their impact can be dramatically reduced by rewarding long term results rather than short term spikes.
In this riveting and timely keynote presentation, Doug Roberts offers important insights into the FreePasser mentality. He proposes concrete actions that American business and government need to take to avoid repeating this dreadful mistake.
Utilizing the skills, patience and detailed analysis he honed while working on Wall Street at Morgan Stanley and as a quantitative analyst for Bernstein; and as Chief Operating Officer of two successful pharmaceutical/cosmetic companies, Roberts analyzes this culture of irresponsibility. Then he seamlessly blends his analytical insights with his love of history to provide the perfect backdrop for this recurring problem.
The list of casualties is endless and imposing: Lehman Brothers, Bear Stearns, AIG, and General Motors, to name just a few. Combine this corporate greed with governmental permissiveness and cultural enabling, and you get the makings of a disaster the likes of which we haven't seen since the Great Depression. Doug Roberts saw it firsthand during his many years on Wall Street as an Analyst and an Investment Banker.
The current credit crisis offers a perfect example of the FreePasser mentality. Its roots lie in the packaging of sub-prime loans for sale to other entities. Many of those who originated these loans had doubts about the ability of the borrowers to repay them. However, since the fees were collected up front and the loans were then passed off as investment vehicles to third parties, the originators incurred no risk so it was not their problem.
This is quite different from an earlier time in our history when the local bank held the loan on its books and, therefore, was deeply concerned about the borrower's ability to repay. The institution's survival depended upon strongly considering the long term consequences of its lending policy, an incentive far more important than booking some short term gains.
The Salvation of Capitalism
Roberts provides a road map to return to the bygone days of cultural, corporate and governmental responsibility and accountability. He provides actual, successful examples of businesses that were not infected with this wretched disease. His insights into how to identify business practices that inadvertently promote this problem are invaluable. He can even demonstrate how ethical business practices support long term financial success. From the boardroom to the mailroom, every business needs to have a mission statement that provides each and every employee with a clear message regarding the appropriate business practices so that there is never any doubt about what is expected of them, and why. Doug's prescription for repairing our broken systems is a message that every company should hear.
Online
Doug Roberts is a regular Contributor to AOL's Money & Finance section.
He specializes in reporting on and interpreting Fed policy.
Click here to read his most recent column.
In The Media
Doug has become a familiar face on CNBC and the Fox Business Channel, and is called upon by the financial press for his insights on a regular basis.
Click Here for links to his video clips and articles.
Publishing
"Follow the Fed to Investment Success – The Effortless Strategy for Beating Wall Street" was published by John Wiley & Sons in April 2008.
Click Here to order.