Supreme Court Ethics: A Comparison with Wall Street Standards
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Chapter 1: Ethical Dilemmas in the Supreme Court
The ethical turmoil surrounding the U.S. Supreme Court has become hard to ignore. Numerous instances have shown that the highest bidders seem to have undue influence over the justices. It's important to note that this corruption appears to be concentrated among the conservative justices; if the liberal justices, like Kagan, KBJ, or Sotomayor, were involved, it would likely be evident by now.
Their blatant disregard for public trust is alarming, compounded by their rationale for such behavior. They want us to believe they possess the intellect to interpret the Constitution but are oblivious to the expectations that come with lavish gifts from wealthy patrons.
Some stories about the Court's ethical lapses are so outrageous they seem almost fictional. For instance, imagine a comedy centered around a Supreme Court Justice whose mother lives rent-free in a mansion funded by a billionaire donor. How can that not be amusing?
Consider a show about the wife of a Chief Justice transitioning to a new career to benefit from her husband's position. Just two years after John Roberts took his seat as Chief Justice in 2005, his wife, Jane Sullivan Roberts, reinvented herself as a legal recruiter. This shift allowed her to connect job-seeking lawyers with firms and corporations, resulting in significant earnings.
Between 2007 and 2014, internal documents indicated that she earned an astonishing $10.3 million in commissions from law firms seeking high-caliber legal talent. These revelations stemmed from a whistleblower complaint, highlighting that the earnings of the spouse of the most influential judge in the country should be transparent.
The ethical conundrum presented by the Supreme Court has prompted me to reflect on the ethical standards and disclosure practices of my previous profession. Surprisingly, the financial sector has established rules addressing conflicts of interest, unlike the Supreme Court. Major investment firms, such as JP Morgan, have their own codes of conduct.
As I navigated my over thirty-year career in finance, I rarely encountered situations requiring disclosure. However, I often reviewed the disclosure records of my colleagues, some of which contained troubling revelations. While most disclosures involved dubious financial dealings, others were more severe, such as arrests linked to illegal drug activities. Regardless of how unsavory these disclosures were, potential clients had a right to be informed.
However, as with any set of regulations, loopholes exist.
The Supreme Court: 'The highest court in the land cannot have the lowest ethical standards.' This video discusses the ethical challenges faced by the Supreme Court, showcasing how their behavior reflects poorly on the judiciary.
Section 1.1: Wall Street's Ethics Compared to the Court
While I was never in a position to offer clients extravagant gifts, I did have a significant advantage in business—my travel and entertainment budget. As the head of a trading operation, visiting clients across the country was a primary responsibility, accompanied by regular client entertainment.
Despite my firm's modest size, I spent thousands each month on wining and dining clients, from attending sporting events to hosting lavish dinners at top-notch restaurants.
An example comes to mind involving a client from a California pension fund. My boss suggested I take him to a Sacramento Kings game, but he declined, citing state ethics rules that prohibited accepting such gifts. He understood the implications of accepting free tickets and how they could lead to expectations of trading business in return.
Unlike other federal officials, the Supreme Court justices are not bound by a strict code of ethics. While high-ranking federal officials must report outside income and certain gifts, personal hospitality—like free meals or accommodations—often goes unregulated. Justices themselves determine whether to recuse from cases with potential conflicts.
Section 1.2: The Grey Areas of Business Entertainment
My experience in finance also revealed that even Wall Street adheres to certain ethical boundaries. I once worked with a brilliant individual who owned an investment firm and a downtown Manhattan building. He ingeniously transformed his basement into a workout facility, inviting clients to join him for early morning sessions.
His innovative approach extended to hosting weekly poker tournaments on the penthouse floor, where no actual money was involved, yet the atmosphere felt genuine. The event attracted numerous traders from major hedge funds, and the firm saw a significant uptick in trading activity following these gatherings.
While the firm could cover various entertainment expenses, there were still restrictions, particularly regarding travel costs for clients. I vividly recall sharing a cab with a client from a public pension fund, where he insisted on splitting the fare due to his fund’s ethics policy.
He understood well the implications of accepting free meals or outings. Nothing comes without strings attached, a lesson every Supreme Court Justice should be aware of.
Chapter 2: The Need for Ethical Reform
The New Ethics Code Is So Much Worse Than You Think - This video explores the shortcomings of the current ethics code and suggests necessary reforms for better accountability.
In conclusion, the ethical standards of the Supreme Court appear lacking when compared to those of Wall Street. The expectation of accountability and transparency is crucial for both institutions, and there is a pressing need for reform in how ethical conduct is managed in the highest echelons of power.