Bank of America Board Ignores a Binding Resolution: Fiduciaries Seizing Power from Shareholders

Corporate board directors have a fiduciary duty to act in the shareholders’ financial interest. What if a board’s directors think they know better that the stockholders as to their interest? In such a case, the directors would be acting like elected representatives who vote contrary to the wishes of their constituents for their own good. While valid from the standpoint of representative democracy, I’m not sure the principle has legitimacy in the corporate context, wherein property-rights are being represented. Simply put, an owner gets to decide how his or her wealth is used, within legal parameters of course. The case of Bank of America’s board may suggest that directors essentially work for their managements while being shamelessly dismissive of even binding directives from the stockholders as a group.

The complete essay is at “Corporate Governance at Bank of America.” 

The man of the hour. Brian Moynihan, Chair and CEO of Bank of America as of 2015. His power exceeded even that of the stockholders, whose concentrated wealth he managed. Lest it be maintained that a CEO with such power optimizes corporate earnings, consider that his predecessor, Ken Lewis, had the bank purchase Countrywide, whose fraudulent mortgages played a vital role in bringing about the financial crisis of 2008. Perhaps CEO/chair duality is of value simply in reducing a corporation's systemic risk. Hence, Congress may legitimately intervene.(Simon Dawson/Getty Images)

Pope Francis Puts Up A Syrian Refugee Family: An Opportunity to Clean House

During wars, houses of worship have become temporary hospitals meeting very practical needs. Caring for the suffering is particularly close to the message and example that Jesus provided. In response to Pope Francis’s call for each parish in Europe to take in at least one refugee family amid the tremendous influx of mostly Syrian refugees in 2015, the pope himself arranged to take in a family. Leading by example is certainly fitting for a follower of Jesus. I submit that the pope could have gone even further to drive home the message of what it means to be a Christian.

The complete essay is at “Pope Francis Puts Up Syrian Refugee Family.” 

Pope Francis washing the feet of men and women in a juvenile detention center on Holy Thursday in 2013. That he washed women's feet flustered some people in the Vatican who missed the main point of the ritual. 

Gay Marriage: God’s Law, Legal Reasoning, and Ideology

Mixing religion, jurisprudence, and ideology together is one potent drink. Ingestion can cause palpable heart-burn as well as migraine headaches. In the case of gay marriage in the U.S., sorting out and evaluating the three elements can be rife with controversy and thus confusion. In this essay, I discuss the county clerk in Kentucky who refused to grant marriage licenses to gay couples because doing so would violate God’s law and thus betray Jesus. Her religious rationale makes for interesting legal reasoning. I then look at the U.S. Supreme Court’s gay-marriage decision. I contend that a natural-right (and thus human right) basis clashes with ideological anger. Human nature itself is on display throughout, particularly as it wades into religion, legal reasoning, and ideology.

The complete essay is at “Gay Marriage: God’s Law, Legal Reasoning, and Ideology.”

Why the E.U. is Compromised in Handling the Refugee Crisis

At least four E.U. states, including Hungary, the Czech Republic, Slovakia, and Poland, rejected a federal plan on September 11, 2015 that would have imposed refugee quotas on the states. The failure to come up with a fair allocation of migrants by state threatened to undo the borderless travel within the E.U. The tremendous influx of mostly Syrian refugees exacerbated differences between the states; given their power even at the federal level of the E.U., the infighting was a risk to the viability of the E.U. itself. I contend that structural flaws in the E.U. itself unnecessarily compromised the Union from quashing the risk to itself by solving the refugee problem. The state governments were clearly not in unison in dealing with the problem themselves.

The complete essay is at Essays on Two Federal Empires.

Refugees held up in Hungary because the state's government was overwhelmed. Why didn't the E.U. step in to help? (Mauricio Limo/NYT).