World Economy Crisis – Ethics and the World Of Finance

World Economy Crisis – Ethics and the World Of Finance

‘Bankers more accountable to society’
Express News Service
First Published : 29 Aug 2009 09:56:53 AM IST
Last Updated : 29 Aug 2009 12:46:27 PM IST

ANANTAPUR: Reserve Bank of India (RBI) Governor Duvvuri Subba Rao today said there was no evidence to show that people in the financial sector were inherently less ethical than people in other professions. However, given the larger temptation and more opportunities, the power of context to be short, there could be greater incidence of unethical behaviour in the financial sector, he remarked.

Delivering the keynote address at the inaugural function of a two-day conference on ‘Ethics and World of Finance’ at Sri Sathya Sai University in Puttaparthi, Subba Rao said: “Because of the very nature of the financial sector, leaders and the top management in the sector have an extra obligation to be sensitive to larger societal obligations. Economics, as an academic discipline, is losing its value base, and conjectured, if that could be at the root of the malaise in the financial sector.”

In his indepth analysis of the present economic recession and the role of ethics, the RBI Governor outlined how a sense of responsibility to larger societal good underpins on the mandate of the RBI. “All of us as individuals, families, social communities and faith communities confront ethical dilemmas everyday, and we resolve them in our own ways. We take the value of ethical behaviour to be axiomatic,” he observed.

Subba Rao referred to financial scams that shocked the world and led to the collapse of markets, from Nick Leeson, Bernie Madoff, Dennis Levine to our own Satyam Ramalinga Raju.

On the RBI role, Subba Rao said the bank had a broad mandate. “We are the monetary authority, issue currency, regulate banks and non-bank finance companies and the financial markets. We regulate the payment and settlement system. We are the debt manager for the Central and State governments and the gatekeeper for the external sector. What guides us in fulfilling this broad mandate was a sense of institutional values and professional integrity. One of the core aims of monetary policy was to maintain price stability. By maintaining price stability, we are safeguarding the well- being of the poor in society,” he said.

In recent years, the RBI was concentrating on financial inclusion and financial literacy. The financial inclusion campaign was to provide access to financial services to people in remote and rural areas and poorer segments of society. The financial literacy programme was to educate people on the type of services that they could get from the financial sector, on the rights that they have and on the grievance redressal mechanism, the RBI Governor explained.

Earlier, Sri Sathya Sai Baba formally inaugurated the two-day conference. Former RBI governor YV Reddy, University Vice- Chancellor Viswanath Pandit and 24 chairmen and chief executives of commercial banks, insurance companies, regulatory authorities and a host of academicians and economists attended the conference.

Express Buzz Reference

RBI chief seeks more ethics from top brass
Mail Today
Mumbai, August 29, 2009

Drawing on the inherent difference between the financial sector, where trust is of utmost importance, and other businesses, the Reserve Bank of India (RBI) governor Duvvuri Subbarao said those running banks and financial institutions have a greater responsibility of being more ethical than those leading other businesses.

Speaking on ‘Ethics and the World of Finance’ at Sri Satya Sai University at Puttaparthi in Andhra Pradesh, Subbarao said, “The (sub-prime) crisis has exposed an issue of moral hazard in the banking system – something that has come to be called privatisation of profit and socialisation of costs.” He was referring to the bailout of failed banks with the help of public funds.

Subbarao said that if, say, a soap manufacturing company became an astounding success, the company’s shareholders and management would benefit. However, if it failed, the same people would lose.

“If banks make huge profits, they can reward themselves with generous pay packets and bonuses. And if loans sour and balance sheets crash, no worry, since the bank will be bailed out at the tax payers’ expense,” the governor added.

This is true regardless of whether a large segment of the banking sector is owned by the government as in India, or whether the banks are privately owned as in most other countries, Subbarao pointed out. Governments, regardless of their political affiliations, can hardly afford large institutions to fail. This ‘too big to fail’ syndrome enables financial institutions to take risks that, say a soap manufacturer, cannot take, the governor said.

India Today Reference

Prof. Vishwanath Pandit Assumes The Mantle Of Vice Chancellorship At Sri Sathya Sai University, Prasanthi Nilayam

Sri Sathya Sai Baba

Prof. Vishwanath Pandit Assumes The Mantle Of Vice Chancellorship At Sri Sathya Sai University, Prasanthi Nilayam
August 06, 2008

Poornachandra Auditorium that has a glorious tale of hosting events in Prasanthi Nilayam was yet again privileged to host a glittering ceremony, the changing over of the Vice Chancellorship of Sri Sathya Sai University. In a ceremony presided over by the Chancellor of the University, Bhagawan Sri Sathya Sai Baba and attended by a capacity crowd including students from all the three campuses, Prof. Vishwanath Pandit, a leading economist, has been handed over the mantle as the 8th Vice Chancellor of Sri Sathya Sai University.

The stage that was decorated matching the grandeur of the occasion had the hallmark message from Bhagawan highlighted, for one and all to imbibe the true meaning of Education. “Saa Vidya Ya Vimuktaye”, meaning, ‘True Education grants you Liberation’ was the apt message adorned the stage that welcomed one and all when Bhagawan entered the auditorium at 9:50 a.m. On stage were the outgoing Vice Chancellor, Sri Anil Gokak, Mrs. Anil Gokak and the new incumbent Prof. Vishwanath Pandit. The programme began with Mr. Gokak and his wife being garlanded by the principals of the Prasanthi Nilayam and Anantapur campuses respectively. Recounting the instances wherein Mr. Gokak had shown a lot of care, concern and character at the expected lines set by Bhagawan, Sri Srirangarajan, faculty member from the School of Business Management, delivering his introductory speech, expressed profound gratitude to the outgoing Vice Chancellor for his yeomen, dedicated service to the institution.

Mr. Giri who addressed next, spoke of the glory of the story of the Institute. He highlighted on the sterling qualities of Mr. Gokak and Prof. Vishwanath Pandit. Overwhelmed by the grandeur and the magnitude of Bhagawan’s all conquering love, the outgoing Vice Chancellor, who spoke next, recounted how his father, Dr. Vinayak Krishna Gokak had experienced Bhagawan’s Divinity that resulted him to finally reaching at His Divine Lotus Feet. Speaking with overwhelming emotion, he expressed his firm conviction that Bhagawan would be with him always and he would be serving Him all through his life. As a conventional practice Bhagawan facilitated the couple with “Suvarna Kankanams” (golden bracelets).

Bhagawan commenced His Divine Discourse with a poem praising Bharat (India), saying that Bharat was such a sacred land where people were born, who were reputed across continents, who had driven away enemies attaining freedom, adding ‘concern’ that now people in the country have become like elephant that does not realise its strength.

The need of the hour is not merely education, but Educare. Educare means to manifest the innate noble qualities from within. Education is related to the outer world whereas educare is related to the inner world, said Bhagawan delivering His Divine Discourse blessing the occasion. Following are the excerpts from His Divine Discourse.

God is One…Goal is One…
Here are the main points from His Divine Discourse

• Man is the embodiment of God, endowed with all powers, but is unable to realise his innate powers as he is deluded with worldly feelings; He is living in grip of fear and is unable to face even small problem. Main reasn for this is the modern education.
• Modern Education helps you to eke out your living and earn money. Modern Education will give comforts to the body which is ephemeral. One may be having any amount of money, but it does not confer peace of mind. One can experience peace and happiness only by taking to spirituality. Bhagawan sang the first line of the Bhajan, “Bhajana Bina Sukha Shanti Nahi, telling that only through contemplating on God one can experience peace and happiness…
• In spite of all his learning a mean minded person cannot give up his evil qualities. What is the use of education, if it fails to confer peace of mind and coming to your rescue when your end approaches? Acquire that knowledge which will make you immortal. To acquire that knowledge one needs to have five human qualities, namely, Sathya, Dharma, Shanthi, Prema and Ahimsa, that is, Truth, Right Conduct, Peace, Love and Non-violence.
• The need of the hour is not merely education, but educare. Educare means to manifest the innate noble qualities from within. Education is related to the outer world whereas educare is related to the inner world.
• Man is essentially Divine. Because of his attachment with the body he considers himself a mere mortal, due to which he is unable to give up his evil tendencies.
• Whenever one gets evil thoughts one should remind himself that he is not an animal but a human being.
• One may be a scholar or an educated person but cannot be called a human being if he lacks evil qualities. Bhagawan cited the example of King Alexander.
• Gokak was the first Vice Chancellor who was an ardent devotee of Bhagawan and students and the institution is enjoying the benefit of his good work. He would obey My command in letter and spirit. Anil Gokak is the worthy son of the worthy father. He has completed there years of his tenure and today he is retiring. But, wherever they go, Bhagawan is always with them; Both husband and wife are ardent devotees.
• We do not give send off to anybody here; we always welcome everyone… welcome….welcome. They are not going anywhere away from Bhagawan.
• The entire world is created out of truth and merges in truth. Even tiny ants and insects, everything is embodiment of Divinity. There is no place where one cannot find God. Hence even if you are protected or punished, think that it happened because of God’s will. It is only God who does everything.
• People may put you to suffering, but still you should love them considering them as your own because the same Atma is present in all.
• Whether you go to America, India, Japan, Germany or Pakistan, Sun is one and the same. it is the same God who is present everywhere. When you think and contemplate on Rama and Krishna you can certainly see them.
• Do not think that God is different from his devotees. Always think that you are God.
• You say that this is my body, this is my mind…questioning yourself who are you? Once you give up the feeling of I and mine, you will know your reality.
• When there are thousand pots filled with water you will see the reflection of the sun in each pot. But once the pots are emptied, there would not be any reflection…similarly when you transcend your mind you will go beyond the feeling of I and mine.
• Today Vishwanath Pandit is taking over as the new Vice Chancellor. He is a good person, travelled all around the world. Many Vice Chancellors have come and gone. But, they have come and gone at the physical level. I am present in all of them as the Atma. Hence there is no question of anyone coming or going. However, one has to discharge his duties at the physical level. This duty is meant to establish relationship with God at physical level. Duty is God. Gokak has done his duty very well. He used to seek clarification from Me. I need such people in My Mission.
• One should always have the unity of thought, word and deed which is the hallmark of a true human being. Educare brings out the unity of these three. You do not need to search for a text book outside to understand Educare. Your heart is your text book. Follow your heart. Only then you become good boys and good people. Good people are God’s Own People.

Prof. Vishwanath Pandit, a noted economist, was earlier the adviser to the World Bank/advisor to Govt. of Srilanka, Dean at the prestigious Delhi School of Economics apart from holding various other distinguished positions and have more than hundred articles published in various international journals.

Prof. Vishwanath Pandit who was asked to address towards the end started with stating that being a man of few words, he had fewer words on such an overwhelming occasion. He thanked his predecessor for all the wonderful works done and prayed to Bhagawan to make him a worthy instrument. As he concluded, Bhagawan blessed him profusely before Arathi was offered to Bhagawan.

Reference (With Pictures)

RadioSai: Wednesday, August 6, 2008 – This morning, an auspicious shower preceded the change of Vice-Chancellor of the Sri Sathya Sai University at the Poornachandra Auditorium. As announced yesterday, the ceremony got underway at 10 o’clock with the students singing bhajans as Bhagawan arrived onstage. Swami sat there, flanked by the incumbent and outgoing VCs, with Mrs. Gokak beside her husband. Ten minutes of bhajans were followed by an invocatory Vedic hymn by the students. Mr. and Mrs. Gokak were garlanded by the principals of the Prasanthi Nilayam and Anantapur campuses respectively. Sri. Srinivasan Srirangarajan then gave a speech, outlining Mr. Gokak’s term as VC, highlighting his transparency, helpful nature, and attention to detail. Sri. S. V. Giri, former Vice-Chancellor, spoke next, bringing out the contributions of both Sri. Anil Vinayak Gokak and his illustrious father, Dr. Vinayak Krishna Gokak, the first Vice-Chancellor of the Sri Sathya Sai University. Sri. Gokak spoke next, praying for Swami’s blessings in his next endeavour, which is to organise the centenary celebrations of his late father.

Bhagawan stood up to deliver His Divine message after Sri. Gokak’s speech. Swami stressed that He is always with each and every one of us, and that with Him, there are no “goodbye”s, only “welcome”s. He urged all of us to remember that we are divine, though we use different names for our bodies for worldly convenience. After His 45 minute Discourse, Bhagawan asked the incumbent, Prof. Vishwanath Pundit, to speak. Prof. Pundit humbly stated in his short speech that he was only an instrument in the Divine Hands.

Swami blessed Mr. and Mrs. Gokak with bracelets. The function concluded with Arati ten minutes past noon while prasadam was distributed.

The Himachal youth had another musical presentation this evening. Bhagawan came onstage at 5.15 pm and the concert for the evening got underway. Ms. Sunanda Sharma sang in Hindustani classical style for an hour. Bhagawan then called her up and blessed her with a chain. The students sang a bhajan while the lady members of the Himachal group readied themselves for a musical presentation, with a couple of group songs. Bhagawan blessed the performers with clothes and chocolates while the students sang a couple of Bhajans till Arati at 6.50 pm.