Parsons Provides Angst, Insight
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NEW VIDEO Coverage of the ASUH elections THE VOICE KALEEOO Serving the students of the University of Hawai‘i at Mānoa since 1922 THURSDAY to SUNDAY, APRIL 9 to 12, 2009 www.kaleo.org Volume 103 Issue 90 Parsons provides angst, insight Kris DeRego News Editor For Richard Parsons, controversy is inescapable, even in paradise. Chosen by University of Hawai‘i at Mānoa Chancellor Virginia Hinshaw as the 2009 Dan and Maggie Inouye Distinguished Chair in Democratic Ideals, Parsons, chairman of the board at Citigroup Inc. and former chief executive of Time Warner, is at the heart of the national economic crisis. For many members of the university community, that distinction should have disqualifi ed him for an award that, in the past, has honored champions of the oppressed. “Parsons has a deserved reputation as a corporate leader who has been willing to devote considerable time to charitable and civic causes,” said economics professor Sumner La Croix. “That said, he has been a director of Citigroup since the mid-1990s and bears direct re- sponsibility for failing to rein in Citigroup’s reckless business decisions over the last six years.” Ira Rohter, a professor of political science at UH Mānoa, agreed, adding that the selection was likely made to boost the institution’s bottom line. “One of the roles of the chancellor is to raise funds to run the university, so obviously you go to those connected to the elites who run things to do that successfully,” he said. “Parsons has lots of finance and political connections, including being an asso- ciate of New York City mayors and an economic adviser to President Obama, which explains how all the guys who caused the financial crash are bailing out their buddies.” Some faculty members felt that honor- ing Parsons, who co-chaired former President Bush’s commission on social security, will enhance the reputation of the Mānoa campus. See Parsons change, page 2 KENT NISHIMURA/KA LEO O HAWAIʻI 2 Thursday, April 9, 2009 [email protected] UH Mānoa’s American studies pro- Parsons gram. “Because of the controversy RICHARD PARSONS surrounding Citi, though, we asked Position: Chairman, Citigroup Inc. Mānoa Minute from page 1 him to change the topic of his keynote Age: 61 “Richard Parsons is a very good speech from business management to Job history: Chairman, Time Warner Inc., 2003-2008; CEO, Time Warner, 2002-2007; president, Time Warner, 1995-2001; choice,” said Vance Roley, dean of the financial crisis he is part of.” Compiled by Glendalyn the Shidler College of Business. “He To Perkinson, events held by chairman and CEO, Dime Savings Bank of New York, 1990-1995. Junio was just appointed as the Citigroup Parsons this week are an opportu- Honors: 2009 Dan and Maggie Inouye Distinguished Chair in Associate News Editor chair about three months ago and nity to ask tough fiscal questions Democratic Ideals, UH Distinguished Alumni Award (1997), was not part of the problem, but will of one of the nation’s highest finan- UH Honorary Doctor of Humane Letters (2003). hopefully be part of the solution. cial executives. Source: Businessweek.com, University of Hawai‘i at Mānoa “LIFEBRIDGE: FREE This should help our public image.” “Just because he’s been asked LIFE INSURANCE FOR Participants in the award’s to serve as the Inouye Chair doesn’t “An honorarium is offered to all mated at $65 trillion.” PARENTS” nominating committee, composed mean the committee agrees with Inouye Chair holders,” Takayama Bankers are being unfairly tar- of faculty from the department of everything that he and Citi have said. “Again, this honorarium is not geted by the public and the media, Thursday, noon to 1 p.m., American studies and the William done,” Perkison said. “For example, funded through UH, but through Parsons said. Queen Lili‘uokalani Center S. Richardson Law School, asked it was recently reported that Citi’s the Inouye Chair endowment.” “There’s no doubt the compen- for Student Services 411 Parsons to address the financial CEO, Viktor Pandit, received $38.2 Established in 2005, the Dan sation structure that Wall Street Info: Teresa Bill, (808) 956- meltdown in his keynote address million in total compensation last and Maggie Inouye Distinguished has implemented needs to and will on April 7, however, because of his year and, as it turns out, Richard Chair in Democratic Ideals has undergo some serious change and 8059, [email protected], relationship with companies affect- Parsons chaired Citi’s compensation raised nearly $3 million from more modification,”he said. “That said, manoa.hawaii.edu/student- ed by the recession. committee at the same time.” than 1,000 donors, said Margot to demonize the bankers alone for parents “When we selected Parsons, No state funds were used to Shrire, director of communications creating this financial meltdown is who is known as an excellent cri- bring the business leader to campus, for the UH Foundation. The honor both inaccurate and shortsighted.” sis manager in the business world, according to UH Mānoa spokesper- recognizes the public service of Instead of pointing fingers, “THE WORD: HELPING our intent was to bring in someone son Gregg Takayama, who said that Senator Inouye to Hawai‘i, as well Parsons believes people need to look STUDENTS AVOID to discuss the business of media in all expenses were paid through a as his late wife’s work in education. inward and examine their own role PLAGIARISM” a time of economic turmoil,” said privately funded endowment hosted Parsons, who attended UH in amplifying the recession. Thursday, 1:30 to 3 p.m., Robert Perkinson, graduate chair of by the UH Foundation. Mānoa from 1964 to 1968 and met “Everybody participated in Kuykendall 106 his wife at the college, did not pumping up this balloon, but now address questions surrounding his the balloon has deflated,” he said. Presenters: Kenton Harsch, THE VOICE reception of the Inouye Chair dur- “Everybody, in reality, shares some English Language Institute; KALEEOO ing a meeting with reporters, but part of the blame, but it’s much Duane Henry, General Edu- EDITORIAL instead focused on the causes and more in the culture to find a villain cation Offi ce; Neal Milner, Ka Leo O Hawai‘i Editor in Chief Taylor Hall consequences of the recession. and vilify the villain.” Ombuds Offi ce University of Hawai‘i at Mānoa Managing Editor Vanessa Sim “As financial engineers began Restoring confidence in the Info: Duane Henry, (808) to see a desire for higher yields market should be the primary goal 1755 Pope Road, 31-D Chief Copy Editor Kyle Mahoney 956-6660 or duane.geo@ Associate Copy Editor Nichole Catlett on investments, they began to cre- of federal officials, according to Honolulu, HI 96822 gmail.com; CTE, (808) 956- News Editor Kris DeRego ate products to match that desire,” Parsons. Parsons said. “Then, guys who cre- “In an economy where 70 per- 6978, [email protected], cte. Newsroom (808) 956-7043 Associate News Editor Mark Brislin Associate News Editor Glendalyn Junio ated new products and models con- cent of gross domestic product is hawaii.edu Advertising (808) 956-3210 vinced rating agencies to rate those based on consumer spending, you Features Editor Yasmin Dar Facsimile (808) 956-9962 products at the level they wanted.” need people people to spend money Associate Features Editor Carly Yonamine “FLOURISHING ON THE E-mail [email protected] Collectively owned sets of for the market to recover,” he said. Opinions Editor Chris Mikesell FRONTIER: TRADE AND Web site www.kaleo.org mortgages, called collateralized Speaking about his time at Sports Editor Ashley Nonaka mortgage obligations, hastened the UH, Parsons, a history major, said URBAN GROWTH IN TANG Associate Sports Editor Russell Tolentino economic crisis once the real estate he experienced culture shock when DYNASTY GUANGZHOU, ADVERTISING Comics Editor Will Caron market plummeted, Parsons said. he attended his first class. 618-907 CE” Design Editor Nicole Gilmore “With collateralized mortgage “I was wearing a suit and tie, Ad Manager Erica Hwang Thursday, 2 to 4 p.m., Saka- Photo Editor Kent Nishimura obligations, the poison got outside and I sat next to some kid who had maki A-204 Business offi ce parallel to the bottom entrance of Associate Photo Editor Austin Larson individual bank portfolios and was on a bathing suit and a surfboard he the Bookstore. Web Editor Alexis E. Jamison sold to investors all around the left outside,” Parsons said. “He was Info: (808) 956-8500 Associate Web Editor Michael Oshita world,” he said. getting sand on my suit.” Credit default swaps, which Ultimately, Parsons credits his “DRUMS & DRAMA: Ka Leo O Hawai‘i is the campus newspaper of the University of Hawai‘i at Mānoa. It is published by the Parsons referred to as “nothing more time at UH with expanding his world MASK DANCE FROM SRI Board of Publications three times a week except on holidays and during exam periods. Circulation is than insurance policies for invest- view, which he deems crucial to oper- 10,000. Ka Leo is also published once a week during summer sessions with a circulation of 10,000. Ka ments,” are also part of the problem. ating in an era of globalization. LANKA” Leo is funded by student fees and advertising. Its editorial content reflects only the views of its writers, “Companies like AIG started “Coming from New York, I was Saturday, 8 to 10 p.m., Ken- reporters, columnists and editors, who are solely responsible for its content. No material that appears in issuing billions and billions and bil- surprised by all the different races nedy Theatre Ka Leo may be reprinted or republished in any medium without permission.