Sunday, 28 September 2014

The Old Boy Network seems Alive and Well

I'm getting mightily tired of the massive fines being imposed on banks (most recently for forex manipulation) not finding their way back to the people who were initially disadvantaged down the line.

I thought the financial regulators were altruistically set up to protect investors and strike a fair deal for them when they were wronged.

But instead it seems the banks continue with their dodgy practices and simply see these fines as a cost of doing business - I doubt that the fines represent more than a small fraction of the gains they actually make from malpractice.

And I can't help noticing what a lucrative industry governance has become in its own right - and how many executives (probably the majority of them ex-bankers themselves) are now doing rather nicely in both the States and here in the UK (despite occasionally having to defer the icing on the cake through bonuses).

In my most cynical moments, I'm convinced there's collusion between the City and its watchdogs*.  While hoodwinking the man in the street by creating the impression that everyone's playing by the rules, it's a perfect ruse for the fat cats to carry on pretty much as they did before - same greed, brighter halo.

They're not alone, of course - charity executives are also capitalising on the plight of those further down the food chain and the likes of Tony Blair are doing alright by picking up on both sides of their meddling as well (I wrote about the latter here).

I live in the hope that God ultimately won't help those who help themselves at other people's expense.

It's since been announced that the Government is allocating £100M from the LIBOR manipulation fines to military and emergency service charities.  Charitable donations by stealth from borrowers and investors to people whose pensions have ironically been decimated by the banks' other dodgy dealings. Blood money?

* If more proof is needed, welcome Attorney General Eric Holder of the SEC to the above club - a classic case of "working" with bad banks like JPMorgan Chase.

UPDATE (4 Jan '16): Another one under Blair's wing - David Miliband pockets big bucks from refugee misery.

1 comment:

  1. Gotta give them credit, though. Creating a whole new industry around monitoring their industry. Does anyone actually produce anything anymore or do they just shuffle piles of money around?