April 30, 2009 at 10:50 am
The ouster of Bank of America CEO Ken Lewis as its chairman is a turning point for shareholder activism at BofA, says School of Management Professor James Post, an expert in corporate governance and business ethics.
“The vote to separate the jobs of board chairman and CEO ends Ken Lewis’ record of unchallenged leadership at Bank of America. The shareholder vote that narrowly ousted him as chairman was the strongest signal of support for the board’s real independence and aggressive ‘watchdog’ role.
“One now can expect shareholders to exert intense pressure on Walter Massey, BofA’s new board chair, and fellow directors to oversee strategic decisions. There are huge operating issues to address before BofA recovers. Whether Ken Lewis stays on as CEO is a decision that he — and the board — will have to address soon.”
Contact James Post, 617-353-4162, jepost@bu.edu
April 29, 2009 at 5:01 pm
Law Professor Daniel Berman, director of the graduate tax program and an expert in international taxation law, was part of the Treasury Department negotiating team the last time the U.S. and Switzerland crafted a tax treaty in the mid-1990s.
With the two countries now in talks for an updated treaty amid pressure to crack down on "tax haven" nations, Berman says the U.S. political environment has changed so dramatically that negotiators will demand much more from Switzerland.
As he said in an interview with World Radio Switzerland, "It's no longer possible or it's no longer acceptable for some countries not to exchange tax information along the standards as everyone else."
Contact Daniel Berman, 617-353-3105, bermand@bu.edu
April 29, 2009 at 4:48 pm
Law School Professor Keith Hylton, an antitrust-law expert, says the Department of Justice is smart to review Google's settlement with authors and publishers over its Google Book search service. But what happens next, he says, is unclear.
"If the rumors of Google’s influence in the new administration are true, the firm is presumably better off with the book deal under the review of the Justice Department than under the FTC. The dangers appear to be speculative at this stage.
"Google should be expected to get some reward for its effort, and that is why monopolies are sometimes desirable in the short run. Perhaps the monopolization concerns could be allayed by treating this like a patent case in which the monopoly is allowed to exist unregulated for a limited period, after which the terms of the deal could be examined by the Justice Department."
Contact Keith Hylton, 617-353-8959, knhylton@bu.edu
April 29, 2009 at 4:39 pm
School of Management Professor N. Venkat Venkatraman, chairman of the Information Systems Department, says word that Apple may be expanding its iPhone offerings beyond the AT&T network to include the Verizon network shows Apple's market power.
"Apple is the market leader -- not because of share but due to its ability to define the rules of the game. With its iPhone, it redefined the rules of engagement with the network carriers. Over the last two years, they have succeeded in making sure that their point of view is embraced by the carriers.
"Now, as it seeks to expand beyond a niche market, Apple is again trying to write the new rules of engagement. Will it continue with exclusive links with AT&T and forego market expansion possibilities or offer different products for different carriers?
"I think it will offer different products for different carriers in the next go-around. And in doing so, Apple retains its role as a leader in setting the rules. It has huge power by virtue of its app store and billion downloads.
"The carriers have to decide if they are competitors to Apple’s app store or partners in co-creating the ecosystem."
Contact N. Venkat Venkatraman, 617-353-7117, venkat@bu.edu
April 29, 2009 at 4:33 pm
Law Professor Tamar Frankel, an authority on securities law, applauds the SEC's decision to turn to legal specialists to fight financial fraud.
"Staffing the Securities and Exchange Commission with specialized expert examiners and investigators is an idea whose time has come. Not only is the financial market far more complicated than in the past, it is also far larger and global.
"The agency needs experts not only as prosecutors but also as the police on the beat. The private-sector police, such as the accountants, attorneys and rating agencies, have failed to provide the information to the enforcement agencies and limit the spread of fraud. The time has come to remove their function to the government.
"If, together with government specialists, we have internal compliance officers within the corporation, we might achieve a better balance of power and a change in the culture and practice of the actors in the financial system. That, after all, is what is ncessary to ensure a thriving financial system and a stronger economy. The SEC should be complimented on its initiatives."
Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu
April 28, 2009 at 4:36 pm
College of Communication Professor T. Barton Carter, a communication law and FCC expert, says Fox Television Stations will likely eventually win its case concerning expletives for which the FCC was issuing fines, despite the Supreme Court's 5-4 ruling upholding the FCC's "fleeting expletive" rule.
"This decision prolongs the long battle over broadcast indecency. As a result of this decision, the case now goes back to the circuit court for a decision on the constitutionality of the policy. Although the lower court did not previously decide this issue, it did discuss it. That discussion indicated a reasonable likelihood that one or more of Fox's constitutional arguments will succeed."
Contact T. Barton Carter, 617-353-3482, comlaw@bu.edu
April 28, 2009 at 8:00 am
Dr. Audrey L. Holland, Professor Emerita of Speech, Language, and Hearing Sciences at the University of Arizona, will be the guest speaker at the inaugural Meredith E. Drench Lecture Series at BU this afternoon at 5:00PM. The Meredith E. Drench Lectureship Fund is Sargent College’s first endowed lecture series. The lecture will take place at BU's College of Health and Rehabilitation Sciences: Sargent College, 635 Commonwealth Avenue, Boston, Room 101. All attendees are invited to a reception following the lecture in the 2nd floor lounge. EVENT IS FREE & OPEN TO THE PUBLIC
April 28, 2009 at 8:00 am
The Howard Gotlieb Archival Research Center will host its Friends of the Libraries Annual Meeting, featuring noted mystery author Elizabeth George, this afternoon. An exhibition of Ms. George’s archives will be opened to the public, and she will be speaking about her work, Careless In Red. The lecture will be held at Metcalf Hall, 775 Commonwealth Avenue. The evening begins at 5:30 PM and is open to the public and free to BU students. For more information, call 617-353-1226 or email archives@bu.edu.
April 27, 2009 at 9:39 pm
April 27, 2009 at 4:56 pm
School of Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and former counsel to the Fed Board of Governors, says Treasury's "stress tests" for top U.S. banks is a mess because it only disclosed the test methodology just before the test results will be made public.
"For credibility purposes, this methodology would have been better had it been released at the beginning of the process rather than at the end. On the eve of the stress-test results release it reads more like a rationalization than a game plan.
"Indeed, the Treasury maneuvered itself into an almost impossible situation with the way it handled this issue. Absolve the banks and who would believe the results. Name the capital-deficient banks and the only thing that keeps them alive is the generosity of the U.S. taxpayer. Quite a mess."
Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu
