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Wednesday November 4, 2009

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Past Event

The Economic and Political Implications of the Crisis in Corporate Governance

Cooking the Books

Business, Corporations


Event Summary

The fall in the stock market was caused in part by a rash of headline-grabbing cases of corporate mismanagement at WorldCom, Enron, Qwest Communications, Andersen Accounting, Global Crossing, Tyco International, and other companies. At the same time, the overall national economy, which seemed to be turning upward after a slowdown, now may be sagging again. At this forum, a number of Brookings scholars will discuss the implications of this crisis in corporate governance for public policy.

Event Information

When

Wednesday, September 04, 2002
9:30 AM to 11:00 AM

Where

Falk Auditorium
Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC 20036
Map

Contact: Office of Communications

E-mail: communications@brookings.edu

Phone: 202.797.6105

Issues for discussion will include: Can we estimate the direct effects of the corporate scandals on the U.S. economy? What are the effects on the federal budget? What are the implications for retirees? What is the role for public policy if workers as well as investors create valuable assets for corporations? How can policy—and the direct involvement of the public—enhance the effectiveness of transparency systems, including those that address financial disclosure and health and safety risks? How do recent changes in the state of the economy alter public perceptions of the role of government and of the images of the political parties? Has this altered the climate for the mid-term elections? What are the implications beyond our borders?

Scholars will speak on the following topics:

  • William G. Gale: Budget and Retirement Issues
  • Carol Graham: Economic Costs, International Impact
  • Mary Graham: Transparency Issues
  • Thomas E. Mann: Political Implications
  • Charles L. Schultze: Corporate Governance in Historical Perspective

Copies of Brookings Policy Brief #106 on the costs of the corporate scandals will be distributed at this Forum.

To be webcast live.

Transcript

MR. STROBE TALBOTT: I'm Strobe Talbott. I want to welcome all of you to the first public event of the fall season here at Brookings. It's going to be a very busy fall and I can't imagine a more appropriate subject in which to begin than the consequences for the economy and American politics of the corporate governance scandal.

This discussion is indeed public, not just for the benefit of those of you who have been good enough to come out here morning. But it will also be available in a WebCast on the Brookings web site which is "www.brookings.edu" and in due course there will be a full video available, also through the web site, as well as a transcript of the proceedings.

I'm joined here this morning by five colleagues and I'll briefly introduce them in the order in which they're going to be addressing the issue. Then after about a half an hour or so of opening presentations by them we'll have some dialogue among them and then go to a discussion involving all of you.

Carol Graham who is a Senior Fellow in the Economics Department here at Brookings has just become the Vice President and Director of our Governance Studies Program. She will be speaking about the cost to the American economy of the corporate governance scandal, an issue that she has addressed along with several of her colleagues in a policy brief that is in your press kit and has gotten some attention over the last couple of weeks.

Bill Gale is a Senior Fellow in Economic Study, he is also the Deputy Director of our Economic Studies Program. He will be talking with somewhat more specificity about the effect of the scandal on the federal budget and also on the nation's ability to meet the retirement crunch.

Mary Graham is a Visiting Fellow here at Brookings and she will look at this episode as a case study in the ongoing debate over public transparency which is the principal theme of her new book, Democracy by Disclosure several copies of which are outside and it's also on sale in the Brookings book store.

Charlie Schultze will offer a historical perspective on this most recent series of events. He of course, in addition to being an extremely distinguished scholar here at Brookings has had some role in the history of economic policy himself.

And Tom Mann who is a specialist on American politics will talk about the political implications of the scandal, particularly as we head into the fall election.

With that, Carol, if you'd please get us started.

The complete transcript is available in PDF form (PDF?74KB)

Participants

Moderator

Strobe Talbott

President, The Brookings Institution

Panelists

Carol Graham

Senior Fellow, Foreign Policy, Global Economy and Development

Charles L. Schultze

Senior Fellow Emeritus, Economic Studies

Mary Graham

Visiting Fellow, Governance Studies
Author, Democracy by Disclosure: The Rise of Technopopulism

Thomas E. Mann

Senior Fellow, Governance Studies

William G. Gale

Vice President and Director, Economic Studies


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