Risky business! Impacts of rogue brokers on firms and Amy Domini talks ESG Episode 45
Episode Summary
The recent passing of ‘the baddest broker of all time,’ Bernie Madoff, reminds us that one bad broker can bring ruin to a firm. Ben Edwards, law professor at UNLV, joins to discuss the ‘one bad broker’ rule and more. Amy Domini also chats with Jeff and Bruce about her historic career as one of the originals of ESG and why the overnight rise of ESG isn’t so overnight.
Episode Notes
Interview with Ben Edwards 0:00-24:40
How to talk about risk in light of Archegos – Agency Cost Theory
- The LGM Preservation case — where could compliance have played a role?
- The importance of knowing what a fund does and who it’s for
- Lessons from Archegos and similar events
- The Charles Schwab and Citigroup transfer snafus
Interview with Amy Domini 25:45 – 53:20
The ‘overnight’ rise of ESG investing
- How Domini came to the sector and the origins of ESG investing
- Confusion around the profusion of ‘types’ of ESG investing
- The crucial role of finance in ESG goals
- COVID
Guest Bios
Benjamin Edwards joined the faculty of the William S. Boyd School of Law in 2017. He researches and writes about business and securities law, corporate governance, arbitration and consumer protection. Prior to teaching, Edwards practiced as a securities litigator in the New York office of Skadden Arps Slate Meagher & Flom. At Skadden, he represented clients in complex civil litigation, including securities class actions arising out of the Madoff Ponzi scheme and litigation related to the 2008 financial crisis.
Amy Domini: A prolific author, entrepreneur, and thought leader, Domini is known around the world for her pioneering work in SRI, shareholder advocacy, and impact investing. She founded the Domini 400 Social Index, one of the first socially responsible investing indices.
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