SOPping Wet

I heard the other day that the newest excuse reason banks aren't lending money to consumers with even good credit is that it's Freddie Mac's or Fannie Mae's fault. I guess previously the standard operating procedure (SOP) was for banks to seal the deal (in whatever means possible) and then do the hot potato shuffle before the mistakes were discovered.

You know, like sell a car with a faulty engine or not disclose the house sits on Indian burial ground.

Well the twins are done with that nonsense. Now they are telling the banks: hey, if you messed up on the paperwork or qualification process, you carry the loan on your books.

Awwww: poor banks being told they need to clean up their own shit. Not sure yet whether this Tough Love stance involves fines and penalties for passing bum loans.

Do business ethics need to be legislated? Guess so.

Now Playing at a Theatre Near You, thousands skim from their business coffers to feed an enormous spending habit and lavish lifestyle. The accountant and business managers probably notice first, and so are frequently fired. Bad news is not very popular when what you are doing is fun.

It's their business risk, their money, their choice, they say. Totally legal. Nobody's business but their own. And all those someones who are working and harvesting the business are relying on the fact that the owner appreciates their role in his success.

The owner continues his lavish habit until it becomes a lifestyle. When things start to dry up, the owner shrugs and says It Is What It Is, the economy sucks, when there is no money for a new work truck or quarterly taxes. But he continues to draw what he needs for private school tuition and fancy client lunches and builder payments on that big expensive house. I mean, would you relish the idea of going home and telling your wife the summer trip to the Bahamas is off?

In no time, that sterling reputation that took a decade to build begins to erode. The folks in the office start to notice efficiency layoffs, and field questions about the company's finances. They work harder than ever but can't deny the small talk in small circles, and the phone ringing less. The owner rebuffs employee concerns by saying it is nobody's business but his own.

He's wrong. It's everyone's business.