Richard M. Bowen’s Experience
The following is from Richard Bowen’s LinkedIn page.
“As a Business Chief Underwriter for Citigroup during the housing bubble financial crisis meltdown, Richard saw fraud firsthand inside the organization. He saw the company certify poor mortgages as quality mortgages and sell them to Fannie Mae, Freddie Mac and other investors.
For two years, Richard repeatedly warned executive management and the board of directors and was ignored. Eventually he was stripped of all responsibilities, placed on administrative leave and told his presence was no longer required.
Richard has testified before the Securities and Exchange Commission and the nationally televised Financial Crisis Inquiry Commission. He has been interviewed by major venues from 60 Minutes to the New York Times and widely quoted in numerous articles and pieces of legislation related to the mortgage meltdown.
He is concerned that we have not learned from the 2008 financial meltdown and are again headed in the same direction, with Citi writing directives that Congress is accepting that will loosen credit standards once again.
He is a frequent speaker about the harrowing story behind Citi and what led to his whistleblowing with lessons taken from his 35 years of businesses experience to give insights into how to prevent fraud and another financial crisis of even bigger dimensions.” Richard epitomizes what it means to be an ethical leader.
The Ethics of Whistleblowing
The ethics of whistleblowing is a tricky matter. Whistle-blowing brings two moral values, fairness and loyalty, into conflict. Doing what is fair or just (e.g., promoting an employee based on talent alone) often conflicts with showing loyalty (e.g., promoting a longstanding but unskilled employee). Taken to its extreme from a loyalty perspective, whistleblowing may involve agonizing conflicts when, for example, it involves violating the trust of co-workers who have engaged in wrongdoing or jeopardizing one’s ‘team player’ status by going against the prevailing winds in an organization that fosters unethical behavior.
From an ethical perspective, while loyalty is an ethical value it never should be placed above one’s ethical obligation to act responsibly and be accountable for one’s actions including reporting wrongdoing. Responsible people blow the whistle when they believe more harm than good will occur if the whistle-blower stays silent. A virtuous whistle-blower acts in an ethical manner when they believe a responsibility exists to protect the public interest. Such a person is willing to accept the consequences of their actions for the greater good.
An ethical person has the fortitude to be courageous because they have the integrity to do what is right even when pressure exists in an organization to do otherwise. The most important consideration in assessing whether a whistle-blower acts in an ethical manner is the intention behind one’s action. Is it designed to right a wrong as ethics requires? Alternatively, is it an action the best serves one’s personal interest thereby motivated by egoism—the pursuit of self-interests. Given the availability of whistleblower awards, a would-be-whistleblower may act to gain the award, not to serve the public interest.
There is no doubt that Richard satisfies the criteria for a genuine whistleblower.
Reflections on a Whistleblowing Culture
A culture that is people centered. Openness is valued. Cultures of trust are created. The best doesn’t need D.O.J. incentives or whistleblowing guides read under the table. Are companies today too naïve or too arrogant to even think their employees don’t see what is going on when there is a blatant bending of the rules? Are we so wound up in profits at all costs and quarterly reviews that we have lost sight of the purpose of business? Yes, it is to make a profit and to benefit consumer’s. But a profit at all costs? Is that what capitalism truly is?
Bowen asks: “Are companies today too naïve or arrogant to even think their employees don’t see what’s going on?
Bowen reflects on his experiences as follows. These are teachable moments. “Let me ask you- at the end of the day how do you feel about the work you’ve done, about the purpose and mission of your accomplishments? About the company’s mission and the contribution you’ve made to it? If you’re proud of your company and its purpose and the contribution you make, chances are your company is one of the many, and yes there are many that are doing it right- not fraudulently.”
But- hey- if your company is not doing it right- get up, stand up- take the right steps- read the books.
I’m for T-shirts, which say stamp out whistleblowing- because we’ve made the need to do so obsolete.
Closing with My Thoughts
It might seem obvious to my readers whistleblowing is an ethical practice. After all, I blog about it all the time. I am also aware that ethics is easier said than done so it is safe to say that individual ethics are born of a culture of ethics. In an organization, this means to establish an ethical tone at the top that filters throughout and sets a standard that is enforced. The worst thing that can happen in an organization is for top management to say they believe in a code of ethics and then violate that very same code when it comes to their individual behavior. And in a culture of ethics, whistle-blowers can come out of the cold. But it was too late for Richard Bowen. However, I know him well enough to say that he felt good about what he did even though the consequences for him were not what had hoped for.
Blog posted on March 24, 2026, by Steven Mintz, Ph.D., Cal Poly San Luis Obispo. Steve is a professor emeritus who wrote an accounting textbook along with Bill Miller from the University of Wisconsin-Eau Claire. Visit Steve’s website to learn more about his activities.