Praise For Stewardship
"This is a powerful and moving book that deserves to be widely read.The idea of stewardship captures powerfully what is needed today.I just hope the financial industry listens."
--Gillian Tett, U.S. Managing Editor, Financial Times, and author, Fool's Gold
"When I was asked by a good friend to read John Taft's manuscript with the possibility of providing a comment about it, I groaned at the prospect of reading another dreary, self-justificatory treatise. I could not have been more wrong. Mr. Taft draws on his considerable experience in the financial industry to produce an essay that is thoughtful, constructive, and, in a word I rarely get to use in the context of the financial crisis, inspiring. I am glad to recommend it."
--Barney Frank, Congressman (D-MA)
"John Taft demystifies the complex inner workings of the financial services industry. He provides a simple, but elegant, approach to restoring trust and confidence in the U.S. financial services markets."
--Ron James, President and CEO, Center for Ethical Business Cultures
"Like his father and grandfather and great grandfather before him, John is another Taft who understands we are all stewards and with that comes responsibility. Stewardship is not just a book for Wall Street. It's a book for you and me."
--Doug Lennick, coauthor, Moral Intelligence
"Timely, well-argued, deeply humane. Taft is the sort of leader financeneeds as it emerges from the crisis."
--Matthew Bishop, New York Bureau Chief, The Economist and coauthor, The Road from Ruin
John G. Taft is CEO of RBC Wealth Management-U.S. He is a leading figure in the U.S. securities industry and served as Chairman of the Securities Industry and Financial Markets Association (SIFMA) in 2011. He is a direct descendant of U.S. President William Howard Taft and Senator Robert A. Taft.
Chapter 1 Core Principles: The Ground Beneath Our Feet 1
Interlude—Learning from Failure: Acquainted with Grief 7
Chapter 2 Finance Run Amok: Selfishness Trumps Stewardship 9
Interlude—Occupying Wall Street: Too Rich and Too Poor 19
Chapter 3 Stewardship Defined: Feeding Your Flock First 23
Interlude—Greed, Glorious Greed 32
Chapter 4 World’s Safest Banking System: Canada, the New Switzerland 35
Interlude—Americans Are from Mars, Canadians Are from Venus 47
Chapter 5 Making the System Stronger: In Defense of Dodd-Frank and Basel III 51
Interlude—Too Small to Save? 74
Chapter 6 Making the Investor Safer: In Defense of New Fiduciary Rules 77
Interlude—An Obligation of Honor 84
Chapter 7 To Investors Standing on the Wings: Prepare for the Next Crisis 87
Interlude—Predatory Volatility 109
Chapter 8 Environmental, Social, and Governance Investing: Could It Be the Answer? 113
Interlude—It’s a Long Life: The Trouble with Short-Termism 129
Chapter 9 Communities, Caring, and Commitment: Reconnecting with Our Stewardship Responsibilities 131
Appendix A Balanced Financial Regulation 147
Appendix B Basel III Regulatory Accord 151
Appendix C Creating a Clear Path Forward 161
Glossary of Selected Financial and Regulatory Reform Terminology 179
Author’s Guide to Supplemental Readings 191
Additional Sources 197
About the Author 205