Trust Digest 13 (July 20, 2013)

Miami Charged With Fraud in Bond Offerings
The Securities and Exchange Commission charged Miami and its former budget director with securities fraud, saying the south Florida city misled investors about its financial health in an alleged scheme to gain better terms on $153 million of bond offerings in 2009.
Key Word: Securities Fraud
Trust Issues: Integrity, Ethics, Responsibility, Accountability, Transparency

Reputation Risk: More important than ever
The public's view of the banking industry has been increasingly unfavorable. In 2011, 86% of opinions shared on social media about European and U.S. banks were negative. Today's challenging climate, however, actually presents banks with an opportunity: Those that actively manage their reputation can generate more value from this intangible asset.
Key Word: Reputation
Trust Issues: Responsibility, Accountability

Oil-Spill Claims Saga: BP Keeps Paying, Corruption Probe Continues
U.S. District Judge Carl Barbier of New Orleans today ordered BP to continue paying claims related to the 2010 Gulf of Mexico oil spill, even though the judge has brought in ex-FBI chief Louis Freeh to probe whether the claims process is infected by fraud.
Key Word: Kickbacks
Trust Issues: Integrity, Ethics, Responsibility, Accountability

The People's Choice: Distrust
There is a collapse of public confidence in government across all fronts. In the most recent Wall Street Journal/NBC News poll, just 17% said they have confidence in the federal government, less than half of the 36% found in 1990. In Gallup's latest poll, confidence in Congress has shrunk to an almost comical 10%. The presidency does better at 36%, but that is down from 58% a decade ago.
Key Words: Political Paralysis, Permanent Congressional Dysfunction
Trust Issues:
Accountability, Responsibility

The Value Of Trust Deposits
When companies engage in actions and behaviors that nurture strong public relationships with all their key constituents, and they do that in a consistent manner, they are building trust reserves not unlike bank deposits, which they can redeem when hard times come.
Key Words: Non-Financial Intangibles, Goodwill, Trust Deposits
Trust Issue:
Top tech firms seek transparency on data requests
The leading technology companies are urging the U.S. government to improve transparency surrounding national security requests for customer data. In a letter addressed to President Obama and top lawmakers, the companies want to report information on how many requests they receive for customers using Internet, telephone and Web-based services.
Key Words: Transparency, "Comprehensive Transparency Reporting"
Trust Issues: Accountability, Responsibility

Poll: Mutual Distrust Grows Between China, US
A new public opinion survey indicates that Chinese and American attitudes towards each others’ countries have dimmed in the past two years. The Pew Global Survey, released Thursday, shows that only 37 percent of Americans expressed a positive view of China, down from 51 percent two years ago.
Key Words: Shift In Perception, Reputation
Trust Issue: Reputation

U.S. SEC staff morale low, atmosphere marked by distrust -study
The U.S. Securities and Exchange Commission is not the best place to work among federal agencies in Washington, according to a new study by a government watchdog.
Key Words: SEC, Government Accountability Office (GAO), "Siloed" Culture
Trust Issues: Competence, Communication

Trust in Global Financial Institutions in Second Quarter 2013 Diverges Across Regions but Remains Steady Overall
Thomson Reuters, the world's leading source of intelligent information for businesses and professionals, today announced the second quarter results from its proprietary TRust Index that measures trust in the top 50 global financial institutions.
Key Words: Trust Index, Corporate Governance Policies
Trust Issues: Accountability, Responsibility

Denver launches financial transparency website, displays checkbook
The city and county of Denver launched "Transparent Denver" on Wednesday afternoon, a website displaying city finances that before were only available through public-records requests and deeper digging.
Key Words: "Transparent Denver", Transparency
Trust Issues: Responsibility, Accountability

How the Voice of the People Is Driving Corporate Social Responsibility
The business case for corporate social responsibility (CSR) is becoming easier and easier to make. You can argue that it boosts a company's brandmanages risk, and just plain saves money. But perhaps most importantly the general public is clamoring for companies to enact good, fair business practices undefined and most of that public pressure comes through social media.
Key Words: Corporate Social Responsibility (CSR), Social Media Backlash
Trust Issues: Responsibility, Accountability, Integrity, Ethics

Judge lets U.S. pursue $5-billion fraud lawsuit against S&P
The U.S. government may proceed with its $5 billion lawsuit accusing Standard & Poor's of misleading investors by inflating its credit ratings, after a federal judge rejected the rating agency's effort to dismiss the civil fraud case. In a written decision late on Tuesday, the judge said the government could pursue claims that S&P manipulated ratings to boost profit, and in doing so, concealed credit risks and conflicts of interest.
Key Words: Conflicts Of Interest, 2008 Financial Crisis, Manipulated Ratings
Trust Issues: Integrity, Ethics, Accountability, Responsibility

Bravo, Elizabeth Warren -- American Hero
Elizabeth Warren first proposed a federal agency to protect consumers from defective loan products in a Summer, 2007 article in an obscure policy journal, Democracy: A Journal of Ideas. She put forth a simple, but elegant concept: If the government protects consumers from defective manufactured products costing a few dollars, why shouldn't it protect consumers from defective financial products costing tens or hundreds of thousands of dollars?
Key Words: Too Big To Fail Banks, Consumer Financial Protection Board CFPB, Dodd-Frank Financial Reform Bill
Trust Issues: Benevolent Concern, Responsibility, Integrity, Ethics

SEC takes Goldman's 'Fabulous Fab' to trial in civil fraud case
The U.S. Securities and Exchange Commission heads to trial Monday against a former Goldman Sachs bond trader in a case it says highlights what went wrong on Wall Street in the financial crisis. Jury selection begins in federal court in New York in the civil fraud case against Fabrice Tourre, 34, who the SEC says misled investors in an ill-fated mortgage securities investment called Abacus 2007-AC1.
Key Words: "The Greatest Trade Ever", Civil Fraud Case
Trust IssuesIntegrity, Ethics, Responsibility, Accountability

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