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Saturday, March 18, 2017

European Officials at the G20 Grapple with a New American Trading Position: Beyond the Joint Communiqué

It is perhaps only natural---only human—for us to take ourselves and our produced artifacts too seriously. Diplomats and other government officials, for example, fret arduously over mere words. When those words are etched in governmental or treaty parchment, the effort is understandable. The flaw of excess is evident in all the time and effort that go into the joint communiques of international conferences and meetings. I submit that the real politic at such occasions is much more significant even if nothing shows from it for some time.
At the March 18, 2017 meeting of the Group of 20, which includes the E.U. and U.S., the joint statement “became an unlikely focus of controversy” issuing in “a tortured compromise stating, in effect, that trade is a good thing.”[1] I submit that the use of such language is spurious—certainly much less than the attendees and even their principals back home supposed. The real politic was instead that the U.S. was “overturning long-held assumptions about international commerce,” and such transformational change takes time even just to register in minds ensconced in the status quo. That is to say, the real shift in power would need to play out in actual negotiations on trade, rather than in how to word a meeting’s joint statement.


A European official, Wolfgang Schauble, perhaps straining at the meeting to understand the new American position. (source: NYT)

The full essay is at "European Officials at the G20."


1. Jack Ewing, “U.S. Breaks With Allies Over Trade Issues Amid Trump’s ‘America First’ Vows,” The New York Times, March 18, 2017.

A Religious Stockholder-Test for Wells Fargo: Confronting Mediocre Accountability

Orienting executive compensation to accountability is easier said than done. For example, it might be supposed that the cause of accountability was aptly served by John Stumpf’s forfeit of $41 million in unvested stock when he resigned under pressure as Wells Fargo’s CEO because of the bank’s systemic overzealousness in signing customers up for unwanted services. Unfortunately, he “realized pretax earnings of more than $83 million by exercising vested stock options, amassed over his 34 years at the bank, and receiving payouts on certain stock awards.”[1] In other words, the man who presided over unethical business practices at the expense of customers received double that which he was forfeiting. How can accountability have any meaning against $83 million? This figure connotes reward rather than punishment. Tim Sloan, who succeeded Stumpf as the bank’s CEO, received compensation in 2016 of $13, up from the $11 million in 2015. Interestingly, it may have been religion to the rescue.







[1] Stacy Cowley, “Wells Fargo Leaders Reaped Lavish Pay Even as Account Scandal Unfolded,” The New York Times, March 16, 2017.