Oh, the ease of blaming others in a crisis
When earthquake experts are sentenced for bad predictions and lenders accused of bad calls on mortgages, society needs a reminder that individuals are responsible for their actions.
Anyone purchasing a car these days does more than kick the tires. Buyers can easily find second opinions, from auto mechanics to Internet reviews. Such diligence is part of being responsible for one’s actions.Skip to next paragraph
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Yet that fundamental idea of taking personal responsibility in a risky venture can easily be thrown to the winds in times of tragedy, such as a natural disaster or a financial crisis. Blaming others then becomes the norm.
A few recent court cases illustrate the point.
One is last week’s sentencing in Italy of six seismologists and an ex-official to six years in prison on charges of manslaughter for their alleged failure to predict a 2009 earthquake that left more than 300 people dead.
The seven men were convicted of “inexact, incomplete, and contradictory” information about the risks posed by tremors in the weeks before the magnitude-6.3 quake. No one was charged for not following standards in building houses with quake-resistant materials.
That case is being compared to a string of lawsuits in the United States against banks for allegedly failing to reveal the quality of home mortgages sold to investors as securities.
The latest suit, brought by the US Justice Department, charges officials at Bank of America and its subsidiary, Countrywide, with not providing adequate information to Fannie Mae and Freddie Mac about home loans sold to the mortgage giants between 2007 and 2009.
In other words, Fannie and Freddie, two of the world’s largest financial institutions, were allegedly duped by the bank after deciding not to “kick the tires” – or review the mortgages themselves to see if they might be shaky investments.
In a similar suit against JPMorgan Chase, the biggest US bank, the government claims the bank “failed to fully evaluate the loans, largely ignored the defects that their limited review did uncover, and kept investors in the dark about both the inadequacy of their review procedures and the defects in the underlying loans.”