Ep. 16: Harvard Law and Economics Professor John C. Coates on his new book, The Problem of 12: When a Few Financial Institutions Control Everything

Financial Climate

More than ever before, advocates are pressuring private-sector companies to take action related to climate impacts. One thing that’s increased the potential effectiveness of these tactics is the tremendous concentration of corporate voting power in the hands of a small number of enormous asset managers. And at the same time, huge, secretive, private equity firms are amassing control of privately held companies, or are taking publicly-traded corporations private.

Harvard Law and Economics professor John C. Coates has just released an insightful and thought-provoking book about the dangers and challenges of these investing trends. During his distinguished career, he was a partner at the leading Wall Street law firm of Wachtell, Lipton, Rosen & Katz, and he served at the U.S. the Securities and Exchange Commission in several roles, including as General Counsel. His new book is called The Problem of 12: When a Few Financial Institutions Control Everything.

I sat down with John Coates to learn about the many problems stemming from this extraordinary concentration of corporate power. I was especially interested to understand what his arguments mean for the efforts of the activists and consumers pushing corporations to meet climate goals and uphold other standards of environmental and social responsibility.