Those cows trusted us!

Sir Peter Schwartz in “Right question that has several possible answers” December 2, rephrases the Queen’s question of “Why did nobody see this coming?” into a “What would it take to make decision-makers both believe and act?”

Absolutely the most valuable lesson we could take out of the current mess is to get a better understanding of why people can turn blind and deaf when they are warned on impending disasters.

In this particular case I would like to go back even a decade or so to ask the regulators of how come they in Basel could come up with such a crazy idea of sending out in the financial markets their City Slickers (1991), the credit rating agencies, knowing well these would, sooner or later, cause a stampede; and how come they still believe they could keep on using them without an even worse stampede ensuing in the future?

I can still hear one of the slickers saying “Those cows trusted us!

Hurrah for the Queen!

Sir, facing the need of a career move, it was interesting to read in The Economist, two weeks ago, an announcement, by the Buckingham Palace, requesting an Assistant Private Secretary to H.M. the Queen. I finally did not send my c.v. to www.royal.gov.uk., not because it was not tempting, but because I thought that although I could offer good global perspective on many issues, the Queen might really be looking for someone with more local know-how (cricket) than what I (baseball) could provide for.

That said, Buckingham’s announcement is noteworthy as it evidences that, even in the Monarchy, good governance issues are deemed so important that they include the statement “The Royal Household is committed to equality of opportunity”. And so, in terms of transparency and equal opportunity in hiring, how does the IMF currently stand up in its search for a Managing Director when compared to the British Monarchy? Perhaps, even though born republicans, should not refrain from a “Hip Hip, Hurrah” for the Queen.

Sent to FT, April 17, 2004