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Banjo
Registered: Feb 2002
Posts: 3302 |
04-27-12 05:27 PM
I have to agree with ghoulish Marty here, it's a philosophical problem at the root. All the rest are deriviatives of the base philosophy.
Predators and prey, welcome to the world of the human animus.
Nature simply looks for the survivor.
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Random.Capital
Registered: Jan 2005
Posts: 3848 |
04-27-12 05:28 PM
Quote from sle:
In the end, it's the incentive that drives all of the stupid decisions in finance. Personally, I think a fairly straight forward solution would be to pay all senior bank employees in a special class of preferred shares that only pay divs when the firm is profitable and make sure that these are not transeferrable. You would be surprised how much focus there would be on risk management and due dilligence...
I'm not all that smart, and even I can think of half a dozen ways around this, right off the top of my head.
The only way to ameliorate - not get rid of, but ameliorate - is to get drastically shrink the size of the honey pots of money. But we are not willing to do that, politically or socially.
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amazingIndustry
Registered: Aug 2009
Posts: 570 |
04-27-12 05:30 PM
Well, I have heard and read more about high profile arrests and jail sentences/ life long barring from rejoining the securities industry 10-20 years ago than in our times. Private Equity/LBO market abuses, investor misguidance by research analysts, traders who hid or misstated losses, to name just a few.
Quote from Random.Capital:
Completely disagree. I can understand why it might feel that way - the most vivid details are the ones we see happening in our time - but it has never been meaningfully different than it is now.
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amazingIndustry
Registered: Aug 2009
Posts: 570 |
04-27-12 05:35 PM
fine analogy, except animal kingdom is ruled by the smartest (especially in the ocean), strongest, most courageous. Not the ones that displays the most cowardice and not the one that can be characterized as the lone wolf, annihilating everyone around them for fear of not getting enough into once own throat. Heck I am a super libertarian but we have completely lost control and ethical values are out the window as if they are ever non-existent.
Quote from Banjo:
I have to agree with ghoulish Marty here, it's a philosophical problem at the root. All the rest are deriviatives of the base philosophy.
Predators and prey, welcome to the world of the human animus.
Nature simply looks for the survivor.
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Martinghoul
Registered: Jan 2009
Posts: 5641 |
04-27-12 05:36 PM
Quote from amazingIndustry:
Not quite, but has anyone been jailed for obvious market abuses, lies to shareholders, law makers, regulators, the public? Anyone? A single one? Or does it take several years to go through the email trails and correspondence to prove wrongdoing? Yes, how about we start actually holding people accountable for their wrongdoing? Or is there a single reason while the "buffet rule" is so vehemently opposed by republicans, lol, I mean other than that the suggestion originated from the democratic camp. Hell, even some of the richest are in favor of paying fairer taxes. And why are some obviously unfair practices still allowed in hft? Why are banks asked whether they like the Volker rules, why not just putting it into place and get rid of prop trading withing banks? Why is commercial and private banking still not segregated from investment banking? Why are the biggest banks that cost the tax payers billions in bail outs allowed to now come to the table to bid for the same toxic garbage that almost bankrupted them 4 years ago? Martinghoul, come on there are thousands of very practical ideas to implement, that nothing has been done is not because there are no ideas out there. Its because those in power are feeding off each other and abuse their power to the fullest.
Yes, that's right... However, these are all ideas that aren't practical, precisely because there's no political consensus that's sufficient to implement them.
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Martinghoul
Registered: Jan 2009
Posts: 5641 |
04-27-12 05:38 PM
Quote from sle:
In the end, it's the incentive that drives all of the stupid decisions in finance. Personally, I think a fairly straight forward solution would be to pay all senior bank employees in a special class of preferred shares that only pay divs when the firm is profitable and make sure that these are not transeferrable. You would be surprised how much focus there would be on risk management and due dilligence...
Yep, I think that's a viable step... I, personally, would also be very much in favor of some measure of personal liability for directors. IMHO, that's the weakest link in corporate governance. Especially, in light of the Bob Diamond/Barclays shenanigans this week.
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