Cleansing the Augean stables

Following the financial crash of 2008 there was a general feeling that those perceived responsible for financial shenanigans should be held to account.

 

Some years later a tough new law to prevent future financial collapse is about to be introduced. For the first time non-executive directors could face the possibility of criminal charges if financial misconduct occurs on their watch.

 

As the various banking disasters unfolded we heard how ostensibly “mega profits” were being generated and that nobody thought that this seemed too good to be true.

 

When an individual or group of individuals are labelled “star traders” the culture of these financial institutions is such that it is virtually impossible for anyone to check or challenge them.

 

There are few prizes for killing the golden goose.

 

Even more ludicrous is the lack of independent controls which left many of the traders to self-police their own portfolio.

 

Whether by design or delusion what trader facing enormous losses is willingly going to face up to the reality of the situation?

 

The preferred course of action is to continue betting more heavily in a forlorn hope to recoup the losses. It is an all too familiar tale.

 

In reality the really guilty parties are those who were operating at the very highest levels in the banking communities.

 

Whilst not directly responsible for the specific transactions they oversaw the deeply flawed system. Whether driven by greed for increased profits or fear of not keeping pace with their competitors they presided over the ultimate train crash whilst being rewarded handsomely.

 

The only way to redress this imbalance is with tough legislation.