Subprime losses and more....

Baseline Scenerio, a newsletter I suggest you subscribe to, linked to an update from S and P on loan losses associated with sub-prime and alt A mortgages and the numbers are not pretty. I would love to go back to look at their estimates from 2 years ago but my gut tells me losses at these levels were unimaginable. We have become so numb to mind-blowing loss numbers that it seems like old news but just sit for a minute and ponder these statistics from calculated risk.

- Subprime 2006 - 40% losses, 2007 - 31%

- Alt A 2006 - 27%, 2007 - 21%

- Loss severities are expected to rise to 70% foor 2006 and 2007 sub-prime

If this is old news the new bad news is still to come around commerical real estate. The size of that market is north of a trillion and some are estimating that property values are going to tumble 50%. I will keep my eye out for some good reading on this topic but keep your seatbelt fastened regarding this financial crisis, it is not over....

Feminine Leadership and the Financial Crisis

My friend Kathy LeMay sent me this piece, "Can Feminine Leadership Mend the Financial Crisis in Iceland?" written by her friend Masum Mamay. It is a must read on this topic and her conclusions are very consistent with those in our paper "Women in Fund Management: A Roadmap to Critical Mass and Why it Matters." She says "the climate was ripe for and open to what has been called a ‘feminine’ way of leading characterized by balance, transparency, fairness, social responsibility, accountability and sustainability."

She features a woman wealth manager who bases her business on these principles: "We have five core feminine values. First, risk awareness: we will not invest in things we don't understand. Second, profit with principles: we like a wider definition so it is not just economic profit, but a positive social and environmental impact. Third, emotional capital: when we invest, we do an emotional due diligence - or check on the company - we look at the people, at whether the corporate culture is an asset or a liability. Fourth, straight talking: we believe the language of finance should be accessible, and not part of the alienating nature of banking culture. Fifth, independence: we would like to see women increasingly financially independent, because with that comes the greatest freedom to be who you want to be, but also unbiased advice."

I like it...........

Hedge Fund Wives - Learning to Cope....

Though I am not sure I would actually read this book I thought this article by the author was very entertaining. Hedge funds are (were) the modern day industrialists when it comes to wealth accumulation... like it or not. Though I have not actually counted how many of the FORBES 400 come from this industry, it is way more then a handful. I would love to cross reference the richest in America with the most generous in American both in absolute and relative terms. If you are going to be famous for making money how about being famous for giving it as well? Thankfully there are quite a few hedge fund wives who seem to be taking up that honor and responsiblility and doing it very well indeed. I hope they get mentioned in the book and not just the ones who spend all day shopping and planning parties. My feeling is that 'to those to which much is given, much is expected.' Happy summer reading...........

One book I did just read and really enjoyed is "The Day My Mother Left" By James Prosek. I met the Author at an art event in CT and he was really lovely.... An easy read and a touching story.

Off to Canada.....and a bit on the Markets

Sorry for the lack of posts this past week... it was a whirlwind. We travel to Canada in the summer and it is always craziness getting ready to go. This year was particularly busy because of the launch of the NCRW "Women In Fund Management Paper" on the 24th. We have been receiving great feedback on the report and CBS Evening News is working on a segment which should air in the next week or so.

I hope to settle in and catch up on all my financial reading. The unemployment number released yesterday was obviously horrible and the markets responded accordingly. I continue to be very bearish overall though I do not think we will test the lows of March 9th. The 'green shoots' remain quite difficult to find and if anything the news just seems to be less bad, not particularly good. Unemployment is the real killer which will continue to weigh heavy on forclosures and other credit related losses. There have been headlines in the news of late about bank portfolio credit card losses hitting 10% which is scary. The other big sector heading for big trouble are commercial real estate loans. Banks are trying hard to earn their way through the losses and some will, but some will not. This recession will stretch out and their be winners and losers. Enough bad news for a beautiful BC day.

Hope your summer is off to a great start. Take care....

“World’s Wealthy Lose Faith in Fund Managers”

I find it slightly ironic that the day we launch our report “Women in Fund Management : A Road Map to Achieving Critical Mass and Why it Matters”, the much anticipated Merrill and Capgeminis’ annual World Wealth Report was published saying that "almost half of the world’s 6.8 million wealthiest investors have lost confidence in their fund manager.” As reported by the New York Times "the report will trigger alarm bells in the city and other Financial Centers.” I suggest that the leadership of these financial firms call in talented women to be their rescuers.

As we clearly argue in this 40 page report the time is now for us to move boldly forward to implement action steps that will lead to a critical mass of women in fund management and in the financial services industry more generally.

As I have said many times before, this report could not be more timely!

Shattering the Ceiling, For Good

Tomorrow is the launch of "Women in Fund Management: A Road Map for Achieving Critical Mass - and Why it Matters." We have had over 300 rsvps to the event at Bloomberg and I am beyond excited. This is a project I have been working on for a very long time and one I am deeply passionate about. I feel so blessed to have had a career on Wall Street as a trader and I remain deeply committed to encouraging more women to enter this field.

Please click here to read my oped published at the HuffingtonPost. ( Shattering the Ceilings, For Good) Please post your comments and be part of the conversation. Many thanks to all my friends who supported this work!

"The Meaning of Enough"

I have been thinking about this a lot lately. What is enough? When is it enough? I have been thinking about this in so many different contexts. In working on this paper for the National Council For Research on Women I commented that women often leave their careers because either they have had 'enough' with the battles and challenges associated with being a woman ( and often working mother) at work, or because they have made 'enough' money to live comfortably and want to spend time with their family and serving their community. Next, I am reading John Bogle's book "ENOUGH. True Measure of Money, Business and Life" where he writes about the "gross excesses that have overwhelmed our financial system, precipitating the crisis we now face." Next I have been thinking about it in a personal context as we prepare for a possible move and I am purging through all the 'stuff' we have accumulated and I am asking why did we purchase so much? I keep telling myself 'enough with the stuff.' And just this morning I read this piece in Naked Capitalism by Leo Kolivakis, a founder of Blackstone, about why he is giving away $1 billion dollars. He suggests that we ask ourselves 'do you know the meaning of enough?" Some people, most people, will never have opportunity to ask themselves this question. Why? Because they live on less then a dollar a day. For those of us who have so so so much more, asking ourselves this question is truly important. I suggest, as does Leo, that it is in knowing the meaning of enough that we will be able to generously give and serve others. Thank you for setting a great example Mr. Kolivakis and I hope you are sharing this message with all the current partners of Blackstone and more broadly, as they are some of the richest men in the world and truly have the power and resources to be change agents. Then again.... so do we all.

The Securitization Process

This morning's BASELINE SCENERIO linked to a very good piece from JP Morgan on how securitization works. ( click here ) I am adding this to my 'investing 101" category on this BLOG. I am working on converting this BLOG into a web-site where I hope to provide access to some of my favorite articles and reference pieces on a whole variety of topics. Stay tuned.....

"Women in Fund Management: A Road Map for Achieving Critical Mass - and Why It Matters" plus The Historic Overhaul of Finance Rules

I have been working in partnership with the National Council For Research on Women for some time on this soon to be released paper called "Women In Fund Management: A Road Map for Achieving Critical Mass and Why It Matters." On June 24th it will be released and you are invited to attend the launch event. For more information click here. We hope to publish a number of opeds in the coming days related to this work so please stay tuned.

More generally this has been a big week for financial news. The Obama administration has announced broad changes to financial services industry the likes of which we have not seen since the 1930s. Though I have not yet had the opportunity to digest the 100 page report from first glance it seems ???????? No doubt changes are needed but whether the administration has had the time or the appropriate expertise to truly get this right is questionable. I will look forward to reading and sharing more. Here is the headline piece from the Wall Street Journal .

a new add - READ more here from BASELINE SCENERIO ( if you are not on their mailing list, you should be)

"Findings from the Layoff Lab" - guest link

My dear friend Deborah Siegel just wrote an insightful piece - a fathers day assessment of recession era dads for"The Big Money" on SLATE. Check it out by clicking here. Bottom like is that while tragic for many the gender shake-up on the domestic front can also have some positive effects. Great insights Deb!

For more great writing from Deb and her posse check out GIRLWPEN.COM .

A Poem - Walk With Me

I wrote the poem below some time ago, 2002 to be exact. I don't remember what was going on in my life when I wrote it, but I keep on pulling it out when I am struggling to make decisions and when I am struggling to understand exactly what God wants me to do with my life. There are so many forks in the road. So many. Sometimes too many. Should it be a coincidence that one of my fav songs has always been Galileo by the Indigo Girls? (click here for the amazing words) I hope you like it. Had to share....

Walk With Me

I am walking outside alone
And I begin to shake
I stop a sec and look around
Am I dreaming or awake?

The air it seems way too cool
For this time of year
I begin to get a sense
That the cool is my own fear

I keep walking straight ahead
Knowing not which was too turn
Thinking of all I have left behind
And all that I have learned.

I see something ahead of me
A bench is on the road
As if put there just for me
To help relieve my load.

I sit down to rest and think
As I can no longer stand
Suddenly I’m scared and turn
For there is someone holding my hand.

Do not be afraid he says
I’m here to show you the way
I wake up, get out of bed
And get down on my knees to pray.

"Get Ready for Inflation and Higher Interest Rates"

This OPED by Arthur Laffer on Wednesday caught my attention. He raises a number of issues that are of concern to me - a high budget deficit, huge government involvement without a clear exit strategy, massive unfunded liabilities and more.... What is truly educational in this piece is the walk through of what may likely occur as a function of the radically increased monetary base. He says "it's difficult to estimate the magnitude of the inflationary and interest rate consequences of the Fed's actions because, frankly, we haven't ever seen anything like this in the US." I agree......

Barron's - Mortgage Troubles - T2 Partners

Alan Abelson calls for "No Bottom in Housing" and I have to agree. He sites the latest research from T2 Partners, a group that has shown great insight throughout the crisis. The numbers highlighted from this report are shocking, including their estimates of how underwater mortgages are in various catagories. They think we are only two crests through the deliquency wave with the following three yet to occur - jumbo primes, 2nd liens and home equity lines of credit ( still mostly on bank books), and loans outside housing. (commerical real estate). Take a deep breath and read the piece......

My Washington Trip! - Tiffany Circle

Train to Washinton. Learnvest. Learn Earn Invest. Angel $. Women. Financial education. 25 yr old. House. Park City. Move? Residential real estate. No buyers. Change. Good? Arrive Washington. Check in. Red Cross Tiffany Circle Summit 2009. French Embassy. The Honorabole Pierre Vimont. Bonjour. Charming. 350 women. Concert. Kennedy Center. Amy Grant. Vince Gill. Michael McDonald. Melinda Doolittle. Darius Rucker. (Hooty and the Blowfish). Allison Kraus. Announcement. ChallengeAmerica.com. Wounded solidiers. Serving our country. Disabled. Heros. Sleep. Am. David Sanderson. Survivor Flight 1549. Survival = Teamwork + Leadership + Faith in God. “God’s hands were on the plane that day. “You never know when and if, one day, you have to cash in everything you have learned in life.” Humble. Grateful. Red Cross International Program. Measles. Today. 540 children will die. Answer? Vaccinations. National Women’s Memorial. Arlington Cemetery. Brigadier General Wilma Vaught. Most highly decorated woman in US History. Cool. Women serve. Supreme Court of the United States. Justice Anthony Kennedy. “Law and freedom are linked together. The law should be a hope to be embraced. Not something to be feared.” History. Red Cross. Chairman Bonnie McElveen Hunter. Ceo Gail McGovern. Amazing women. Amazing. Try to imagine the world without the Red Cross? No… don’t. We need them. Blood. Disaster relief – big, small and everything in between. Measles. Preparedness. Disease Prevention. Maternal health. Bed nets. Volunteerism. Trust. A Lovemark. Serving the needs of our country’s military personal and their families. Restoring family links. Tiffany Circle. 500 women. 350 showed up. Collective giving. Collective action. The Womens Funding Movement. Train. Home.

(photo - Jacki and Kayrita with Justice Kennedy)

Baseline Scenerio - The Global Crisis

Gotta love those 4 am internal alarm clocks. I know it is a girl thing. Once I have had 'enough' sleep and I wake up for whatever reason the "to do list' starts going in my head. I try to push it out but if that does not work within 10 minutes I just get up and get to work. It was one of those mornings.....

One of the emails I look forward to reading every morning is from BASELINE SCENERIO. I have blogged on them before and suggest you subscribe. Consider reading this entry - Global Crisis and Reform: A Long Journey.

About Baseline: The Baseline Scenario is dedicated to explaining some of the key issues in the global economy and developing concrete policy proposals.

Off to Washington............

Summer is here and Bill Gross - "Staying Rich in the New Normal"

I hope you all, everywhere, had a lovely weekend. This was the first for me that truly felt like summer had arrived. I spent a couple of days out on Long Island where I shopped at the outlet mall ( great prices and no lines), walked on the beach, played with the kids, and enjoyed the company of great friends. Tomorrow it is off to Washington DC for a womens conference associated with the American Red Cross.

One must share piece is the latest from Bill Gross. Like usual I agree with what Bill has to say in that we are in a new world. It is not going to be business as usual and we are not going to just ease our way out of this recession. Sadly we are in DEEP and it is going to take a while to dig ourselves out. For the latest thinking of this investment guru click here. Have a great couple of days....

The Next Shoe to Drop - Commerical Real Estate

There are more and more articles appearing on the problems in the commercial real estate market. Yesterday in this journal this piece highlights some of the issues that are of concern. “The sector’s woes are considered a major threat to economic recovery. There is some $3.5 trillion in commercial real-estate debt outstanding – more than the amount for auto loans, credit cards and student loans combined. And the default rate is rising sharply."

I believe that defaults and losses on commercial real estate is the next shoe to drop alongside the continued troubles in residential real estate and other consumer related debt. The banks have had a window to raise capital and are working hard to earn themselves through these problems. The government has done a good job buying them time by holding interest rates down through their quantitative easing programs but there are cracks in the bathtub. The dollar has weakened, as it should, and long dates treasury yields are moving up sharply. This of course drives higher rates on mortgages which is a negative for the housing recovery.

This might well be the time to take advantage of the big bounce we have had in equities on hope that the recession is now over, as some are starting to call. Sorry, I don’t believe it. I believe this will be a long, drawn out recovery so keep your seat belts fastened.

GM Set to File for Chapter 11 Protection

I really did not want to move my last blog entry out of prime position but this is a story. How could I not write about GM going under especially when it has been the subject of BLOG entries for some time. Check out what I wrote on August 3rd of 2008 and again on Nov. 11th. Yes my husband called this outcome YEARS ago and he if you read the August 3rd entry, he is still calling for GOLD to go to 1200.

Take a look at these articles today for more details: here and here. ( from FT and WSJ)

Town and Country Philanthropy Issue - and more.....

I love magazines. In fact, I collect them. My basement is full of thousands of them: from Fortune and Fast Company, to Oprah and Architectural Digest. I cannot read one tenth of the number that flow in to this house but it gives me joy knowing there are there in case one day I actually have the time to look at them.

This month one issue came in that I read from cover to cover. It is so of the moment both in terms of what is going on in the world, and what is going in my world, that I felt it was written just for me. It is now my second favorite issue of any magazine of all time. (My first is the 1972 issue of MS Magazine with Wonder Woman on the cover)

What is it you ask? The June issue of Town and Country – The Special Philanthropy Issue. Here are the top 10 reasons why I love it and why I feel it is so relevant this very moment:

1) In an article called “The Upside of the Downside” the wonderful Tracy Gary encourages us to give abundantly despite being in a period of scarcity. “The paradox is that in economic times like there, the opportunities for our humanity to flourish are abundant.” I like that. Buy Tracy's amazing book here.

2) My good friend and author Joanna Krotz wrote a number of features in this issue including some profiles of some of my favorite people on the planet. Her new book “ Town and Country - The Guide to Intelligent Giving” was just released and it is awesome. Click here to buy it for you and ALL your friends. For more on Joanna and her work - click here.

3) JK wrote a piece called “Teach Your Children Well” which offers some great insights about how to start the dialogue about money with your children. If you want to go deeper my fav money book for kids is "Raising Financially Fit Kids" by Joline Godfrey. Click here.

4) JK profiled Jennifer Buffet, an extraordinary woman giver who I have had the pleasure to getting to know through the Women Moving Millions Movement. She is as special as JK’s story says she is and more. Jennifer is committed to the empowerment of girls globally. The Novo Foundation is behind the GIRL EFFECT which if you have not seen and forwarded to everyone you know, you much. Click here to watch. For more on the NOVO foundation - click here.

5) JK profiled a force of nature from Atlanta, Kayrita Anderson, whose story I have been telling on radio programs around the country this past few weeks as part of the Women Moving Millions media outreach. Kayrita and her husband are working to end child prostitution in the state of Atlanta and aspire to share their model with others across the country. To learn more about their work click here.

6) There is an article about helping children in Cambodia, a country I recently travelled to with the American Red Cross. The gorgeous photos of the children took me right back there. That trip proved to be a major catalyst for me in my philanthropic work.

7) JK wrote a piece on Goldman Sach’s Dina Powell, the leader of their 10,000 Women Initiative. I was present last year when they announced this program and I have never been more proud to be affiliated with this firm. Read this piece from Huffpo.

8) They give you a whole list of gorgeous jewelry you can buy that also supports charity. We need to, NEED TO, use our pocketbooks to inspire and enforce the change we want to see in the world. If we buy products that have a cause element, more and more companies will do this. I serve on the board of the Breast Cancer Research Foundation and millions of dollars flow in to use because consumers buy products with our logo. Do it more, do it often, and think about how you can do it within your own company.

9) If we want magazines like Town and Country to publish issues like this one we have to buy out the shelves, subscribe, and write a letter to the editor telling them how much we love it. Please do ALL THREE RIGHT NOW! Thank you to Pamela Fiori, Editor in Chief, for creating a space for all these incredible stories.

10) The last reason why I love this issue is because it came out at the same time Women Moving Millions concluded the first leg of their initiative that I am honored to be a part of. They surpassed their goal of raising $150 million in million dollar gifts that will go to Womens Funds around the country and around the world. Many of the women in the issue, including Tracy, Kayrita and Jennifer are donors, and I had them sign their pages along with Helen Lakelly Hunt and Chris Grumm, marking this moment, as being the start of something big. The ‘something’ is women using their collective resources, and especially their money, to drive the change they want to see in the world. This is a movement. This is the Women’s Funding Movement. This is the Women’s Money Movement.

Have a great Sunday. God Bless.................

Residential Real Estate - My Own View

I have read many places that the economy will not be on solid ground until the problems in the residential real estate market truly begin to sort themselves out. So how close are we to that happening? First let me share a few facts I have picked up from recent readings.

According The Economist magazine, the value of US housing stock is $19 trillion. The value of homeowner’s equity has decreased to $8.4 trillion from $12.5 trillion in 2006. An estimated 10 million Americans are now in a negative equity position on their primary residence. For years as prices were rising home equity served as a debit account to fund consumption, that party is now over. Further people are now just plain worth a lot less than they used to be and therefore are likely to consumer less.

Some further facts come from John Mauldin’s May 4th commentary. Two-thirds of mortgages in the US are held by prime borrowers, of which 5% have missed at least one payment or 1.8 mm mortgages. These borrowers are not the first to default as they are of higher credit quality and have greater equity cushions, but as these folks face job losses and eat up their savings, the numbers will rise dramatically. This is happening now. The losses on these high quality loans are only just starting to hit. As the economy deteriorates the losses on this sector of the mortgage market will mount.

Sub-prime mortgages currently have a 22% delinquency rate, which adds up to 1.2 mm mortgages. These lower quality mortgages were the first to go, and delinquency rates continue to be very high. Huge losses have already passed through on these mortgages but more will occur especially if the economy continues to deteriorate.

More facts - Median home prices are down almost 30% from their peak on average, with a starting price of $230,000 in July 2006. Moodys.com estimates that 2.1 million homes will be lost this year and increase from 1.8 million in 2008. The available housing stock is still at record highs, and fewer people are ready, willing and most importantly, able to move.

We are currently considering a move out west and therefore we have our house in the market, and as I am typing this I am on a plane on the way home from Utah where we looked at some homes. When they say it is a buyer’s market they are not kidding.

As a seller I have had a few lookers, and I have to say we have a great house. There is nothing really wrong with it, which is key, except that it is not brand new. We have had one accepted offer, but the buyer decided to buy another house. At that sale price we would have been slightly above where we bought it in late 1999. Slightly above. If we HAD to sell it tomorrow, I have no idea what the price would be, but likely down from our 1999 purchase point. I have been told that if there is basically anything wrong with the house, there is no bid, unless it represents a true bargain.

Now on the buy side. We looked at brand new construction in Park City and we had endless homes to choose from. For most of the homes we liked we were told, just show a bid, which would likely be substantially below cost. Now for the perfect house, in the perfect location, you will of course pay more, but again, endless homes to choose from.

So what does all this mean? The housing market will be a mess for a while as the main buying season is NOW so one can move before the kids get back to school. Not only is there way too much supply, distressed sellers, and massive numbers of bank owned properties, but with unemployment continuing to rise more and more people will find themselves unable to make payments. The downward cycle of deleveraging, falling asset prices and mounting losses will continue. The powers that be are doing what they can do: pressuring banks to modify loans, continuing to pump money in to the system at all levels, supporting the financial institutions and keeping mortgage rates low. The reality is however that the problems will continue for the foreseeable future.

This is the key reason why I continue to be negative on the US equity markets in particular, and the global equity markets more generally. In the US where 70% of our GDP is consumer driven, how can earnings continue to be anything but bad. The consensus seems to be to expect $40 S and P earnings ( Kostin – GS) for 2009, with at the current level of 910, is anything but cheap. ( 22 times trailing) The real question is of course what will 2010 look like? The housing market at these point is intimately connected with the employment outlook, and again, not good. Over 6 million jobs have been lost since this recession began, so not only do we need to add those back to get back to where we are, but we need to add 125,000 per month just to keep up with new entrants. Where are those jobs going to come from? Mauldin estimates that if you include the underemployed our unemployment rate in this country is already at 15%. 15%. The strain on our system that will cause will be almost unprecedented.

I could easily write another story like this one on the commercial real estate market but I will save that for another day.

And don’t even get me started on this countries unfunded liabilities! In an OPED over the weekend called “Don’t Monetize the Debt”, the WSJ quotes the Dallas Fed saying that “we believe the unfunded liabilities of retirement and health care obligations total over $99 trillion.”

So there you have it. I am still very negative and hope that I prove to be wrong. If you want to read another opinion of where we are now by a guy a lot more experienced and connected than I am read the piece in the current issue of Business Week by Mohaamed A. El-Erian of Pimco called “The New Normal” or the bigger piece he wrote linked below. He ends it this way - “In short, the world’s economies are in an era whose troubles will go well beyond just a flesh wound.” For his more detailed monthly commentary click here. Click here and here for Bill Gross's most recent ones as well. Both are must reads. Check back to this site regularly, these commentaries are about as good as it gets.

Investing in Women and Investing

Yesterday I had the pleasure of speaking on a panel with Chris Grumm, President of the Womens Funding Network, and Ana Oliveira, President of the New York Womens Foundation. The topic? Investing in Women. Why and Why Now? What does that really mean to me? It means this - seeing that providing access, opportunity and resources to women, as a movement, as a collective, is a way to create a more just and equitable world.

That belief came to life last night at the Ms. Foundation dinner in celebration of Gloria Steinem's 75th birthday. Two women leaders, Gina Womack and Kirbie Platero, told their stories of how grants from this foundation has transformed them and their communities. "The Ms. Foundation supports the efforts of women and girls to govern their own lives and influence the world around them. Through its leadership, expertise and financial support, the Foundation champions an equitable society by effecting change in public consciousness, law, philanthropy and social policy." The room was full to the rim, and you could feel the change happening. You could feel the transformation happening. It is about this investment model really taking hold. It is about people with resources coming to understand why funding in this manner, really makes sense. I am going to work on a few opeds on this subject and I cannot wait to share them.

As for the markets ... I have not written about them for a while as I have had so much going on in other spaces but if you get the newsletters I have suggested in the past, in particularly John Mauldin's ( see link), I would just say "I agree with what he says." I believe that we are a long way away from the problems being over. A long way. We may be through the worst part of the 'financial crisis' but we are still in the early innings of the economic crisis.

I am heading to the airport in minutes but while on the plane over the weekend I am going to write a longer economic commentary for posting next week.

Have a great long weekend!!!

Adam Does not Win American Idol!

I am getting ready to hit the PUBLISH button the moment they say his name. I have been watching American Idol all season with my two children and it has been great. We are hoping that Adam wins because he is just such an amazing singer and so original! This final show has been great - well ...... with the exception of Bikini Girl. At least Kara made her look like a fool. Sorry, but she deserves it.

Ok.. the results are almost here!!!! oh bummer............... but Congrats Chris!

The FT Calling for 30% Women on Boards

YES! It is another sign. Just today we are putting the final touches on a discussion paper that I have been working on for a very long time with the National Council for Research on Women looking at reasons and solutions for why there are so few women managing money. We pull the lens back on the issue in to a more general context on the lack of women in positions of leadership and power at financial services firms more generally and issue a "Call to Action." One of our calls if for responsible institutions to adopt a voluntary "Critical Mass Principle", which sets as a goal 30% women on their boards and in senior leadership roles. The Financial Times issued the same call in an OPED published today. We see the time as now to boldly move forward and are launching the paper on June 24 th at Bloomberg. As far as we know it is the most comprehensive work ever done on the topic and we hope it will get lots of media attention.

According to the FT - "If there is ever a time for women to make a decisive breakthrough in corporate boardrooms, it is surely now. Many boards, especially in financial services, are in flux after the testosterone-fueled excesses that led to financial disaster. There is a desperate need to rebuild trust, more easily achieved if boards better reflect customers and the public."

Amen. Amen. Amen.

We are still looking for partners to assist in the launch of this important discussion paper so if you are interested please contact me orTeresa Bagly at the National Council for Research on Women.

I already crafted a response to the editor and I hope you will too! To send a letter to the editor letters.editor@ft.com .

Rachel Alexandra, A Sign, Girl Power and Investing in Women Pays Off

It’s a sign. I know it is. Amid a field of all males, 12 to be exact, it is the girl that pulls out ahead. Yesterday Rachel Alexandra became the first filly to win the Preakness Stakes since 1924. I love this quote in the New York Times, “I think she’s the greatest horse in the country. That’s colts, fillies, boys, whatever. She is an amazing filly.” I especially like the “whatever” part.

So what is it a sign of you ask? It is a sign of GIRL POWER. It is a sign that change is happening. It is a sign that betting on women, betting on girls, will and does pay off! It is a sign that investing in women is a smart thing to do. Although you might think I have lost my mind I see it as yet another example to the world that girls and boys, men and women, colts and fillies, are meant to occupy the same places and spaces, have equal access and opportunity. This win IS about the best horse, but it also about the best horse being a girl!

I will close this brief entry with the theme I continuously write about in this blog. The theme is gender equity and gender equality. I want to live in a world where we have it, and because of it, it will be a most just and equitable place for all.

PS. I love horses, so does my daughter, and her name is Alexandra.

The New York Womens Foundation Breakfast and a Major TO DO List

Thursday morning I was one of over 2000 people ( mainly women ) dancing through the doors of the New York Hilton hotel to the beat of Grup Gringo Capoeira USA. The event was the annual breakfast in celebration of the work of the New York Women's Foundation (NYWF), a public philanthropy started 22 years ago to “be a voice for women and a force for change.” Their primary purpose is“to help low-income women and girls in the five boroughs to achieve sustained economic security through expanded opportunities.” I have been and will continue to be a supporter of this organization, and I encourage you to be as well. If your goal is to help make New York City a more just and equitable place to live, I cannot imagine a better way to do it. (they are a member of the Womens Funding Network)

The room was overflowing with political leaders of the city and state, celebrities, committed donors, women leaders of all ages, first timers, and GOOD men. The theme of the morning? Investing in women and in their future, is one of the best ways to build a more just and equitable world.

The Honorees included Ambassador Swanee Hunt for her lifetime of work, but also in special recognition of her leadership role in starting the “Women Moving Millions Movement”, which as mentioned here the day before, just announced they had raised $176 million dollars for women’s funds. Abigail Disney in her intro called Swanee “ bold and visionary and unaccepting of the status quo.” In very colorful language for so early in the morning she said Swanee has the biggest set of jewels, brass balls, cahones (is that a word?) and finally LIFE POUCHES of any woman she has ever known. Swanee humbly took the stage and with a southern smile the size and sweetness of the great outdoors she responded that she was reminded of a quote from Golda Meir that says “Don’t be humble; you are not that great.” Wrong Swanee... you are truly great.

Next up was Governor Patterson talking about the needs of this state and praising the work of the NY Womens Foundation followed by the award presentation to Lilly Ledbetter. If you do not know her story, then please read this and this. The words “accidental activist” kept ringing through my ears. He is one of the greatest examples I can think of a woman who responded to her personal circumstance in a way that changed the world FOREVER, for millions. The issue? FAIR PAY. As a victim of work based gender bias she said enough, ENOUGH, and fought the battle to earn rights for others. When women do not earn as much as men for equal work, this has implications not only for her financial security and future, but for her family for generations to come. (pictured right)

We then heard from a young woman, a girl, who at the age of 16 was left for dead on the side of a road by a man who had just hired her for sex. He had beaten her up so badly, breaking her nose, splitting her lip, breaking her bones, that when she was finally able to go to the mirror she did not recognize who she was looking at. She was one of many teenage girls that are commercial sex workers in this city and the organization she credits for helping her put her life back together is GEMS, a grantee of the NYWF. This is why we were gathered there this morning.

Mayor Bloomberg took the stage next I hope in part due to his support of his partners work, Diana Taylor, Vice-Chair of the NYWF. I was later speaking with Harville Hendrix, best-selling author of “Getting the Love You Want” and husband of Hellen LaKelly Hunt, about the next movement being a “couples movement” and we reflected upon what might have been the impact of him and Diana standing up there, hand in hand. Another opportunity missed…… Never-the-less he did a great job, and spoke about the commitment of city to enable NY to become the “easiest city in America to serve (volunteer).” Here all about the new initiative by clicking here. I love it!!!!

Next up, if you can believe it, was Queen Latifah, again being honored for her activism and commitment to the achievement of women’s equality. First as a teenage woman rap artist in a male dominated world she had the courage to stand up against that exploitive culture. She started her own management company because she was not going to hand her career and finances over to someone else, and it is a successful business today. She is such an amazing example to every women, but in particular young women of color, what you can achieve. She announced a brand new and exciting initiative of the NYWF called RISE New York ( Respond, Inspire, Solve, Engage) and she committed on the spot, $10,000.

After another amazing story of a women saved by the work of the foundation the event was closed by the empowering words and voice of Angelique Kidjo, grammy nominee. Angelique was born to sing and if you click here, I know you will agree. I had first heard this amazing woman at an event earlier this spring, the annual awards dinner of the National Council For Research on Women. She is truly a force of nature. Raised in a family with seven brothers and 3 sisters in Africa with a mother she describes as knowing how to raise good men she was blessed to have a father who was a man that knew “love cannot be a jail but rather love must set the woman free.”

So what can you do with all this information? Here is a list.

1) Support the New York Womens Foundation.
2) Buy Swanee Hunt’s book – The Half Life of a Zealot
3) See Abilgail Disney’s Movie - Pray the Devil Back to Hell
4) Read about the Lily Ledbetter Fair Pay Act and talk about it with every person you know.

5) Support GEMS and save a young girls life.
6) Volunteer and encourage everyone you know to as well. For NYC click here.
7) Buy and read one of the many books by Harville Hendrix and make your love relationship all it can be, then bring that passion to your philanthropy as a couple!
8) Read about and support this new initiative of the New York Women’s Foundation – RISE New York.
9) Buy Queen Latifah’s music for you, your daughter, heck every woman you know and go see every movie this fabulous woman is in.
10) As above for Angelique Kidjo - buy here.
11) LAST BUT NOT LEAST - This Thursday I will be speaking at an event hosted by the Harvard Womens Business Alumni Group with Ana Oliveira, President of the New York Womens Foundation, and Chris Grumm, President of the Womens Funding Network. Our discussion is entitled "Invest in Women: Why and Why Now." You can sign up to attend by clicking here. Chris and Ana are two of the most amazing women on this planet so do not miss this opportunity.

Have a great day!