SEC Action re Fiduciary Duties Relating to Municipal Bonds
A recent action by the Securities and Exchange Commission (SEC)
against the city of Harvey, IL, a poor city of 30,000 just south of
Chicago, deals with a different sort of fiduciary duty than the
usual government ethics case. In a complaint dated June 24, 2014
(attached; see below), the SEC alleges that the city's comptroller
acted as financial adviser in three bond issues for a hotel development, diverted some of the funds to himself, and also diverted
funds to the city's general fund. The comptroller is acting as
Ginny Looney
<br><br>One of the most important figures in local government ethics passed
away last week at the young age of 61, after a relapse of ovarian
cancer. Virginia "Ginny" Looney was Atlanta's first Ethics Officer.
She was appointed by Mayor Shirley Franklin, who conceived and
pushed through the ethics program back in 2002. <br>
<br>
Ginny helped turn Franklin's ideas and an inadequate ethics code
into an excellent ethics program. She held the ground against
Patronage in Illinois, or Shakman Is Dead, Long Live Shakman
It's the end of an era. Last week, according to <a href="http://www.chicagotribune.com/news/local/breaking/chi-rahm-emanuel-shak…; target="”_blank”">an
article in the Chicago <i>Tribune</i></a><i>,</i> a federal
magistrate declared that Chicago was released from the 1972 Shakman
consent decree, which was supposed to end patronage (for a long
Ethics Commissions Need to Look at the Reasons Behind Gift Rules
The Washington state Legislative Ethics Board has been discussing
how many meals a state legislator should be able to accept from
lobbyists and lobbyist-employers under the "infrequent" meals
exception in the state ethics code. The exception allows legislators
to accept food and beverage when their attendance is "related to the
performance of official duties" on "infrequent occasions." The board
has apparently never defined "infrequent."<br>
<br>
Why Government Ethics Programs Have Limited Subject Matter Jurisdiction
An individual who was asking me government ethics questions
recently became angry when I said that codes of conduct that go
beyond conflicts of interest are outside of my field. He said that
those who engage in bad conduct will probably also engage in bad
ethics. He referred to my exclusive focus on conflicts of interest
as "compartmentalization."<br>
<br>
This reminded me how important it is to make it clear why government
ethics programs deal exclusively with conflicts of interests and
Quote of the Day - Soft Money
<h4>Old soft money was associated with <i>access</i>, like a wad of
cash that you’d slip to a nightclub bouncer to get in the
door. The new soft money is more like a bulge in one’s jacket
pocket, an implied <em>threat</em> against those who refuse to
comply.</h4><br>
—Dan Tokaji and Renata Strause in <a href="http://electionlawblog.org/?p=62486" target="”_blank”">an Election Law Blog
Lobbying Central to Upcoming HBO Series
The portrayal of lobbying state and, hopefully, a few local officials will
soon be in the hands of Lawrence Wright, the Pulitzer Prize-winning
author of <i>The Looming Tower: Al Qaeda and the Road to 9/11</i>
and, most recently, <i>Going Clear:
Scientology, Hollywood, and the Prison of Belief</i>.<br>
<br>
The People's Pledge in Mayoral Races
In 2012, Elizabeth Warren and Scott Brown signed a People's Pledge
in their U.S. senatorial race in Massachusetts. The candidates
agreed to donate to a charity of the other candidate's choice a sum
equal to 50% of any advertisement run by any outside group or PAC.
The goal was to let the candidates control their own race and to
prevent outside groups from changing the nature of the race,
especially by running negative ads, as they tend to do. The pledge was successful
Risk and Government Ethics
Thinking in terms of risk is a great way not to take responsibility
for your actions, including your inactions. As soon as you start
thinking about the chances that, overall, you might win or lose from
a transaction, you have begun thinking in terms of your personal
interest. This makes it very difficult to think in terms of the
public interest.<br>
<br>
You have also begun thinking in terms of consequences rather than in
terms of rules. And it is rules, not consequences, that underlie the
The Costs of Corruption
According to <a href="http://www.governing.com/topics/politics/gov-corruption-politics-spendi…; target="”_blank”">an
article this week in<i> Governing </i>magazine</a>, a report in <i>Public
Administration Review</i> found that "more corrupt states tended
to spend money on construction, highways, and police protection
programs, which provide more opportunity for corrupt officials to