The Madoff conviction is no more than a Nuremberg Trial

Conservative estimates put the number of dead in the Holocaust at six million, the number of Nazis involved in these crimes as sixty thousand and the number tried and convicted at the Nuremberg trials was two hundred. Conservative estimates put global financial losses at $20 trillion of which Madoff’s share was $171 Billion and he alone has been sentenced to 150 years.

Trying and punishing Madoff while necessary and critical is no more than a token. His shame is the shame of an individual and was a far simpler swindle than the one created by the pillars of Wall Street. He is an old fashioned crook who used a ponzi scheme till the feeder pipe ran dry. But the chiefs of investment banks like Lehman Bros., AIG are guilty of creating a whole new system which is so complex and convoluted that even today there is no way to pin point the blame and the cause of the fall. They set in motion an avalanche the end of which no expert can predict. No financial model or historic precedent is capable of telling us when these “toxic assets” will be flushed out of the system so that clean money can start flowing again. Madoff was a tumor you could operate and throw out but these whiz kids and greedy people have created a cancer that has spread everywhere.

The chiefs of these institutions need to be brought under the scanner just as Madoff has been. Additionally, all those highflying executives who raked in not just handsome fees from clients, but also bonuses from their organizations, must share the responsibility. In their defense many of them say that they were merely carrying out orders. But so did all the Nazi guards who simply acted on command to save their own lives.

If these words seem a little harsh (after all we are talking about the loss of money and not of lives) it is time we looked at the human cost of these events. For millions of families this situation has had a very tangible effect- one that will live with them forever. Surely the conviction of one Madoff will never be enough to prevent this from happening again. So let us not congratulate ourselves on bringing to justice Madoff while the big criminals roam free.

State Bank of India- an unlikely mirror of Indian history

Most of us have dealt with this icon of Public Sector banking at some point or the other in our lives. Many of us happily and many grudgingly (yours truly belonging to the latter category). But despite its infamous babugiri , SBI is a surprising saga of Indian history.

It has, for example, as its subsidiaries Bank Of Hyderabad, Bank of Patiala and State Bank of Bikaner and Jaipur, all established at various times by the then Rajas of the Princely states to mange their finances. The Hyderabad subsidiary even managed the Osmania Sicca- the state currency of Hyderabad. At the time when the various Princes still ruled their roosts, these subsidiaries must have given them a sense of control, but now as the SBI looks to merge them into the parent company it is an indication of the maturity of the banking system of the country and how the country is leaving its past behind.

A look at what happened to PSU Banks and especially SBI during the past year also holds a mirror to our financial system and the Indian mentality. During the recent economic crisis the top IT companies of the country chose PSU banks over private sector banks to deposit over Rs.20, 000 Crore. While ICICI and HDFC Banks were reeling under the shock of steep rise in cash withdrawals, almost all PSU Banks saw a record jump in new accounts and deposits. So much so that led by the SBI, PSU Banks were the first to cut loan rates.

And this is what we Indians really are- we may talk of liberalization, efficiency of the private sector banks, the new approach to buying everything on credit- but when push comes to shove, we will trust the good old SBI and PSU banks. Why? Because we know the conservative Indian Government governs them, and we will put money in fixed deposits rather than risk them in the stock market. SBI was built by and for the Indian way of dealing with money.

As SBI moves forward with its consolidation and modernization efforts, it stands as an example of modern India- one that is learning to accept that competition today demands agility but at the same time understands that at a basic level nothing much has changed. An average Indian even today is still far more concerned with saving for tomorrow than spending today.

Micahel

Debt, mystery, rumors and uncertainty- all these marked his life and also the final hours of his death. The King of Pop moved into history surrounded not by his family or loved ones, but pain and strangers.

And perhaps that is the saddest part of his life. He is undoubtedly the most well known name in music around the world. No single artist has been able to inspire so many people in every corner of the world. As stories of vigils and tributes around the world pour in it is hard not to be amazed at how much love he inspired, but never really got to have that love at a personal level.

Haunted by his skin disease and an aching desire to be more “white” Michael Jackson’s personal life was marred by pain. The legal case against him of child abuse and also the incident with him holding his infant son dangerously over a ledge, caused him enough social suffering as well. He lived in public scrutiny and private pain and perhaps without a moment of peace.

As he goes to his final resting place, it can only be hoped the world will remember him more for his music, dance and passion and less for the outrages that his life had become.

Sarkozy and the Burqa- I say Bravo despite everything!

Since I read about it, news of the strong comments by the French President against the Burqa has been running in my mind. I am still debating whether he has taken an extremely bold step or just stirred up a hornet’s nest?

There is no doubt that the Burqa or any such garments or accessories (shoes, breast and waist bands as in the case of the Japanese) that restrict an individual’s physical freedom and are meant to curb their natural flow, should be done away with. But the question here is that if these are clearly religious symbols, is it the State’s place to do so? France is a secular nation, which means it treats all religions equally giving preference to none. But by actively commenting upon the religious practices of one community it is violating that very secularism.

Those favoring this move state that the Burqa is not a religious practice but a social one. Which is to say that the Quran does not require a Muslim woman to wear it but rather the conservative Islamic societies the world over promote this tradition. Therefore the State, as a preserver of societal values in a country, is right in commenting upon it. But we must not forget that Islam is a communal religion-, which is to say that unlike Hinduism, Jainism and such religions it focuses on the community life of the individual rather than his or her private internal faith and spirituality. Practices such as mass prayers, contributions of a part of the income to the community and even Sharia, all indicate that in Islam the lines between the social and the religious are unclear. So the Burqa must be treated as a religious practice in that sense and not just a social one. By that token Sarkozy may just have crossed the boundaries of Secularism here.

But what if a religious practice is anti-social and harms a section of society? Should the state remain silent on it? In India the practice of Sati and Human sacrifice were both quasi-religious practices, they were banned by the British and the ban was endorsed by the Governments of independent India. No one would disagree that this was the right thing for the Government of India to have done. Then by the same token, we must also support this step taken by the French Government. The public ban on the Burqa is an attempt to free Muslim women of the restrictions imposed by such practices and give them the equality and freedom they deserve. (Where the Indian situation maybe different from the present scenario in France is that the ban on Sati and Human sacrifice dealt with the majority community of India- Hindus. Muslims on the other hand are a minority in France and this action maybe viewed as discriminatory if not handled correctly.)

To conclude, this action of the French President and his Government will be debated and commented upon for a long time to come and only time will tell how the larger Islamic World reacts to it. In a Global atmosphere where it takes so little to injure egos, this could be seen as yet another step by the West to alienate the Muslims. But if the French have decided to set down the bold path where religion must be a private matter and all it’s overt signs (if in any way against basic Frenchness) restricted from public display, then it must take care to apply these rules to all communities. I for one would be curious to see what Sarkozy has to say about the use of head scarves by Christian nuns. But for now I am going to side with him and say, Bravo! Someone had to do it.

Is Jobs the Only Apple on the Tree?

Steve Jobs, the CEO of the Cupertino based Apple Inc., we are told, has just had another surgery. The WSJ confirms that he had a liver transplant and is well on his way to recovery. And so begins a fresh round of speculations and apprehensions of what will happen to Apple after Steve Jobs.

The fear that the Apple may rot
The paranoia amongst the general investor community seems so deep rooted that many newspaper reports (see here for MSNBC and the LA Times to name just two) actually spend close to half of their words illustrating in detail what his ailment is and what are the chances of his full recovery! Frankly all this would be mildly humorous if it wasn’t so off the mark.

Sure the health of a CEO at any company is of great importance. Especially if we are to believe that good leadership is as much to do with the individual, as it has to do with systems and methods he uses. And hence his/her absence will have a materiel effect on the workings of an organization. But surely none of us are naïve enough to believe that a world-class company like Apple has no plans in place for a scenario where the top leadership may not be there. Also if we are to question the very existence of Apple without Jobs, what does that really say about him as a CEO?

Jobs well done
There is no doubt that Steve Jobs has had a successful run. An analysis of several Silicon Valley based companies over the last five years shows that Jobs is by far the most successful at creating shareholder value as well as delighting customers with new gizmos. While Apple stock has appreciated by 727.77% in the past five years, Cisco, Sun Microsystems and Microsoft have each shown losses of –19.25%, -48.02% and –15.10% respectively for the same period. Only Apple’s smart phone rival Palm, is in the green with a positive return of nearly 40%. Most of this success at Apple can be attributed to the iPod and more recently the iPhone. Both considered to be brainchild of Jobs and aggressively promoted by him. He has lead the design, launch and promotion of these products with a fervor rarely seen and this level of personal involvement has made his personality inseparable from the image of Apple as a company. But is that really the case?

Deliberately planted
Apple has traditionally been tight lipped about its new products and strategies. In a hotly contested market such as this, it is perhaps suicidal to reveal names of key product team members because competitors can exploit them. Therefore all of the Apple communication, identity and product imagery has centered around and emanated from the one source- Steve Jobs. This has helped to give its new launches the added zing of mystery and created Jobs as an icon for the gizmo freaks of the world to follow. The PR machinery at Apple has perhaps deliberately cultivated him as the ultimate gadget guy who constantly churns out these amazing products. But why do we forget that it took more than just Jobs to make these legends come true? There are many who must be given credit, including product designers, marketing teams and the whole machinery that it takes to pull off a success story like this. Undoubtedly Jobs provided the vision but it was a team that executed on it.

Time to chew faster
Health is forcing Steve Jobs to retirement a little earlier than he planned. And this is not the first time his presence at the company has come under question. The 2007 stock grant scandal had raised these concerns even before. In this in-depth article about succession planning at Apple the writer talks about the steps the company is taking to mange this struggle. This piece was written in January of 2009 but as we edge close to June, the steps seem to be ineffectual. There is as yet no clearly recognizable alternative to the face of Apple and Jobs’ health continues to severely effect speculations about the future of the company. If it is to overcome the present hurdle Apple must divert from its current strategy and expedite the process of bringing forth alternative faces and names with whom the investors and the public at large can identify.

A lesson to be learnt from Bill Gates this time
Logically speaking the success of Apple is a combination of Jobs’ vision and a job well done by the team at the company. The infrastructure and framework for its continued market leadership exists. All it needs to do is leverage it with greater speed and as Bill Gates did at Microsoft, Jobs must ease in a transition while he has the time

On this Father's Day

Let’s start off by wishing all the loving and caring dads out there a very Happy Father’s Day. It is not every day that us kids take the to time thank our dads for all that they have done for us and today I want to talk about how special dads are by telling you about mine.

Now as dads go, my dad was like most dads I know. Besotted with his kids, wishing he could spend more time with them but also pulled into long work hours and the business of life so that he could take care of those kids. When we were growing up my Dad worked with his brothers in the family business. So it was work, work and more work. He was often the last one to come home and then too with worry lines on his brow. But even then he found a way to be with us. In the chilling Delhi winters we (mum, dad and three of us) would sit in a razaai and he would cut fruit for us and feed all of us. If you ever meet my dad look at his hands. They are not delicate. They are small, pudgy, rough and they shiver. But they can still cut an apple as deftly as the best chefs on TV. He loved feeding us and listening to what we had done that day and make plans for the future. That one hour he spent with us made us feel like he was part of our lives.

He also made sure that he not only fed our bodies but also our souls. Education was always his first priority and its only now that I realize what a heroic effort it took on his part to give me the opportunities he did. Growing up in a conservative extended family with almost fifteen members in the same household, I had very little flexibility to exercise my own choices. When resources were limited, higher education for the kids was not at the top of the list. Sure it was important to get that college degree but only in as much as it improved your over all prospects to land a good match. But despite all this family pressure my dad never compromised on my education. He sent my sister and me to a progressive boarding school in the beautiful town of Dehra Doon, and when I said that eventually I wanted to work, pushed me fiercely to take an advanced computer-programming course and get a Post-Graduate Degree in Business.

Its only now that I have some sense of what it took for him and my mother to do this. In this rather stifling environment my father not only gave me these incredible opportunities, he also shielded me from all the objections that the family must have had. And may be that is why even today, he is my safe harbour in many ways. I am sure if I sat down to document them there will be an endless list of things my dad has done for me and what’s more I would still never know about all those things which he did quietly behind my back.

So for all the things I know and don’t know that you have done for me and for the strong, modern and independent woman you have allowed me to become, I want to thank you. And for all the years that are yet to come may I ask that you continue to be the loving, thoughtful and brilliant man that you are and let your kids take care of you if you should ever need that. Happy Father’s Day Papa.

If Michelangelo were a young man today

I am not a big newspaper reader. Like most people I skim through the headlines and if something catches my attention I do a quick scan and then re-read if its really worth it. So when an article in the "Mumbai Times" promised to tell me who is the artist behind the graceful statue at Shirdi ( a bit of an unusual trivia), I decided to give it a read. The article was average but what really caught my attention were these lines “Most of the lucrative big statue orders are given to experienced sculptors who have a monopoly in the market. The best option for new struggling sculptors is to work with established ones or get into commercial art used in movie sets, hotels etc.”

Now if anyone has read the story of Michelangelo’s life you would probably see what I see. This describes exactly the situation and the challenge he faced over five hundred years ago. Not born into a family of sculptors, he had to struggle all his life to get commissions and risked everything he had to create art that was of his own vision, and did not adhere to the commonly accepted norms of the time. We know him today as one of the stalwarts of the Renaissance, but the man died amidst a life long struggle to be understood and accepted by his peers and the patrons of his time.

This unexpected parallel makes me ashamed. It would seem that in five hundred years we haven’t really grown much as a race. What happened in the Italy of the Renaissance is true even today. We have not developed enough of an appetite for art so that younger, newer artists can flourish. We do not have programs to really support novices who need both the emotional and financial support to hone their art and build a reputation. How many times has each of us been amazed at the price an average work by an “established” artist can command while a stunning piece by a new artist is listed for a fraction of that?

Whether it be in cinema, sculptor or any other form of art, connections it would seem are far more important than the skill. If you choose to be an artist you must accept that struggle is an integral part of your life. So if Michelangelo was a young man today he would still have to fight with MF Hussain to win commissions and most of us would have happily bought a horse painted by the latter over a piece of what Michelangelo created at the Sistine Chapel.