QOTD: Bankers Must Take Resposibility for Own Mistakes
How very British: Hector Sants, the head of Britain’s financial industry regulatory body, chides the industry for refusing to step up to the plate and mea culpa:
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“There remains, I believe, an absence of the acceptance of collective responsibility for what has happened. I remained unconvinced that all senior management have taken on board the need to change and operate in a genuinely different manner.”
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American capitalist never apologize — instead, they rationalize away their involvement, then grab a government bailout.
That’s a shame: A parade of disgraced CEOs — from Fuld to O’Neal to Mozilo — genuflecting and begging a 1,000 pardons, would be a delicious sight to behold . . .
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Source:
Financial Regulations Chief Chides British Banks
JULIA WERDIGIER
NYT, November 9, 2009
http://www.nytimes.com/2009/11/10/business/global/10fsa.html
November 10th, 2009 at 2:37 pm
Well, if that isn’t the understatement of the last 100+ years…….
November 10th, 2009 at 2:56 pm
and they won’t either. they can dream up all kinds of ways to misdirect the responsibility for it
November 10th, 2009 at 3:05 pm
how is possible to take responsibility when you think that you’re doing “god’s” work?
November 10th, 2009 at 3:07 pm
“they rationalize away their involvement, then grab a government bailout.”
what could be easier- a win/win for the bank- bet it all on black- if it lands on red- get some Fed sugar so you can play in the markets and pay billions in bonuses-
capitalism? no
government support for a bunch of whiny spoiled ivy league educated bankers? yes
November 10th, 2009 at 3:34 pm
As an American Capitalist who has not reached out for a bailout when I have failed (not that there would have been one available [since I am not politically connected or "big" enough]), I don’t like being lumped in with these parasites. Maybe American Mercantilists, or American Corporatists, or hell just American Parasites would be better.
Regards,
TDL
November 10th, 2009 at 3:38 pm
Mistakes were made, but not by anybody who is getting a fat bonus this year, thanks to the taxpayers.
November 10th, 2009 at 3:50 pm
Richard Koo audio is excellent. Especially interesting to hear behind the scenes account of Volcker’s response during Latin American crisis.
November 10th, 2009 at 4:21 pm
The following position by Geithner is an example of “Stockholm Syndrome”. Who do you suppose per chance has been presenting these arguments to him?
“Treasury Secretary Timothy Geithner has been adamant that creating a standing fund would enhance moral hazard and be viewed by the financial industry as an insurance fund that would insulate it from risky bets.”
To the contrary, a standing fund would provide funding that would allow the government to shut down a bad bank and shift its assets and liabilities to another entity, just as the FDIC does today. A banker who knows the government has the ability to take away their job will be more cautious than a banker who knows that his firm is TBTF.
Geithner could draw this same conclusion, but it would not be in his best long-term interests or future career prospects to oppose the investment banking community. Therefore whether consciously or unconsciously he will follow, he perceives that he must follow, their script.
It is simply not possible for people with conflicts of interest (such as a future lucrative employment opportunity) to effectively regulate an industry.
You know that it must be in the back of Geithner’s mind that he will land a nice job at a prominent financial institution so long as he does not anger them while in public service.
You also know that Summers remembers that $5 million part-time hedge fund gig that he got just before moving to Washington and he must think that future opportunities are certainly in store.
Wall Street bankers are masters at instilling their brand of callous greed in others.
I doubt many of us in Geithner’s position would have the courage to risk everything in order to do what is absolutely right. His attempt to find a way to please the industry while appeasing the public is pretty much human nature given the circumstances he is placed in.
There are very few Sheila Bairs in this world who will stand up for what is right as opposed to looking out first for their personal prospects.
November 10th, 2009 at 4:28 pm
I’ve come to the conclusion, at my age, that it’s not how you play the game, or even if you win or lose, but rather, what advantage you have when it’s over.
It’s all about grabbing wealth and money, no matter who it comes from, or what conditions that come with it. If the cash is in your hand, then you have the control. Don’t believe me, think about that they next time you actually walk into a real bank, and work with a teller, if anyone does that anymore….
November 10th, 2009 at 4:29 pm
It’s a human nature to turn to other people (gobmint) when you are deep in doo-doo.
The political class had the choice, they could have turned it down. There were many congress critters in both parties who voted against the bailouts. Not majority, but close anyway.
Like Peter Schiff says “Gobmint/Fed spiked the alcohol in the punch bowl and the kids got drunk, who’s more to blame here?”
November 10th, 2009 at 4:46 pm
People need to face up to the way things are. Is there any other purpose to the organisation of anything other than rigging ‘it’ to that organisation’s benefit? The “checks and balances” thing has almost never worked out too well. What came down has been played out in human history a million times over.
Human beings…what can you expect?
November 10th, 2009 at 5:07 pm
Democracy:
from bondage to spiritual faith
from spiritual faith to great courage
from courage to liberty
from liberty to abundance
from abundance to complacency
from complacency to apathy
from apathy to dependence
from dependence back into bondage.
Unknown
November 10th, 2009 at 5:24 pm
madman130,
even Schiff is wrong to conflate the Actors he mentions–if that quote is accurate..
remember the old adage: “He who pays the Band, Calls the Tune.”
The FedRes is the ‘Bank’/the ‘Payor’..
It is never more complicated than that.
“Monetary policy is—aside from war—the primary tool of state aggrandizement. It ensures the growth of government, finances deficits, rewards special interests, and fixes elections. Without it, the federal leviathan would collapse..”
http://mises.org/books/whathasgovernmentdone.pdf
http://www.runtogold.com/2009/06/what-has-government-done-to-our-money/
–in the second link there are, many, illuminating Charts..
November 10th, 2009 at 5:28 pm
“the need to change and operate in a genuinely different manner.”
And they never will unless they are allowed to feel the pain of failure. There is no incentive.
November 10th, 2009 at 5:59 pm
@MEH:
This is off topic but I thought you might find it interesting.
http://blogs.abcnews.com/theworldnewser/2009/11/fda-responds-to-docs-refusing-h1n1-vaccine-over-fears-its-too-new.html
FDA Responds to Doctors Refusing to Give H1N1 Vaccine
November 10, 2009 3:33 PM
….and I have spoken to several docs who are not recommending or taking the vaccine because of past experiences….
http://www.nytimes.com/2009/05/09/health/09vaccine.html
Fear of a Swine Flu Epidemic in 1976 Offers Some Lessons, and Concerns, Today
“The feared swine flu epidemic of 1976 never materialized. And several hundred people, including Ms. Kinney, who is now 68 and lives in Gig Harbor, Wash., developed Guillain-Barré syndrome, a rare neurological condition that causes temporary muscle weakness or paralysis. More than 30 of those people died.”
…I spoke with an orthopedist last week about why he isn’t taking the vaccine…the first two words out of his mouth were Guillain-Barre.
B in T
November 10th, 2009 at 6:06 pm
@Bruce: My own specialist recommended that I get a vaccine shot due to my chronic autoimmune condition and the drugs that I’m on that leaves my immune system in a supposedly weakened state (although I’ve rarely been sick in almost 4.5 years, aside from a common cold or two), but I think I may ignore that advice and not get the shot.
November 10th, 2009 at 6:11 pm
@ Bruce
Side effects. You gotta admit, death is a pretty severe one. That’s why I passed on my shot.
November 10th, 2009 at 6:36 pm
@ Bruce,
no doubt, a similiar story was even covered, here, in Local Playper.
the Search results, alone, should be telling..
http://www.mcall.com/search/dispatcher.front?Query=Flu+Vaccine&target=article
gotta luv the appeal to Hartford Med School “Experts”..
and the phony logic “…should really not be considered a “new” flu vaccine. It’s made the same way flu vaccines are made every year…” employed to catapault the Propaganda..
compared to: http://www.mcall.com/search/dispatcher.front?Query=Flu+Vaccine+Dangers&target=article
v.
http://clusty.com/search?input-form=clusty-simple&v%3Asources=webplus&query=Flu+Vaccine+Dangers
November 10th, 2009 at 7:49 pm
meh
Talking about swine flu prevention, I have yet to hear of any measures taken against the likes of Smithfield foods who are no stranger to the problem.
http://www.rollingstone.com/politics/story/12840743/porks_dirty_secret_the_nations_top_hog_producer_is_also_one_of_americas_worst_polluters
People are refusing the flu vaccine for one reason or the other but not questioning what’s in their plate very often.
Don’t eat shit.
http://www.eatwild.com/
November 10th, 2009 at 9:29 pm
Watch that M report and guidance in the Morn!
May be an indication of what’s ahead for the holiday season.
November 11th, 2009 at 7:44 am
All these issues with the banks keep causing volatility in the stock market. This makes it harder to make a profit, unless an investor has good timing signals to know when to get in and when to get out.
I believe the best way to approach this for those over 50 is focus on what it is you know and when done that much younger people did not have a chance to do yet, due to lower number of years employed.
But when all else fails, it makes sense to at least spend more time to manage your retirement accounts, and make up for the lost income, while you are waiting for the next job interview.
Yes, stocks have become much more expensive,and may consolidate a bit from where they are now.
However, using a good market timing system can help an investor profit both from the upside and downside of this market.
Consider http://invetrics.com
Its daily DJIA index trading signal is up a respectable 68% for the year (as of November 1, 2009) and it is free of charge for individual investors.
November 11th, 2009 at 2:08 pm
@beaufou
I’ve long wondered if Peep, knowing more about the Supply Chains, that feed them, would, actually, change their consumption patterns..
That art. does a pretty good job outlining all of the hidden Costs of our ‘cheap Food’-policy.
Sadly, peep think, if at all, that non-enforcement of Regulations applies only to Wall St. ..
They should wonder..