In-House Counsel

Quote of the Year: 2008 in a nutshell

By Hanna

At their core, recessions are the ugly process of fixing imbalances that have come about because of unwise decisions by businesses, individuals or government leaders (or, often, all three).  People tend not to make the exact same mistakes repeatedly, instead finding new ones to make.

Neil Irwin, Washington Post Staff Writer, “Fed Looking at Another Rate Cut to Stem Crisis,” Washington Post, December 16, 2008.

Financial risk and legal risk often go hand in hand.  The headlines for most of 2008 were atrocious.  It started with rogue trader Jerome Kerviel in France at Societe Generale SA and a senior management more content with “profits” than the warnings flashed by its compliance system.  It ended in December with Madoff’s mother of all Ponzi schemes resulting in part by regulators more content with the status quo than the warnings.  In between were gigantic financial meltdowns, bankruptcies, and bailouts too numerous to name.

On the legal side of the coin, you can safely bet the mortgage that there will be more regulations than ever before once all of the financial life preservers have been handed out.  And before you think those bailouts are “gifts” you might want to note that the money does come with big strings attached, often with the practical effect of making Uncle Sam your new business partner.  Yes, the legal dimension can make a bad business situation worse.

In trying to find the bright spot amid the wreckage of 2008, I look to Aesop who said:

better to be wise through the misfortune of others than by your own. 

You know, the more I think about it, the more I like it.  It’ll make a good New Year’s resolution.  The only exercise it requires is an open mind.  Large portions are good for you.  You can partake any time and anywhere.

I’m in.  How ’bout you?

Have a joyful and blessed new year.

Cheers!

Hanna, The No Nonsense Lawyer

Full post as published by Legal Literacy on December 31, 2008 (boomark / email).