Lord Turner “calls it how it is” but even a Public Inquiry may not restore trust

FSA Chairman Adair Turner For a flavour of just why Lord Adair is talking in such terms this extract from the FSA report into the collapse of RBS (published late last year) should help:

“the multiple poor decisions that RBS made suggest that there are likely to have been underlying deficiencies in RBS management, governance and culture which made it prone to make poor decisions.”

Of course this is not the full extent of what went wrong at RBS – I actually don’t believe that this statement adequately covers the scandalous £12bn rights issue, “forced” by Hector Sants (former FSA CEO), aided and abetted by, such as, Goldman Sachs, UBS & Merrill Lynch  IF THIS ISN’T A SPECTAULAR FAILURE OF CORPORATE GOVERNANCE BY GOODWIN AND HIS FORMER CO-DIRECTORS I DON’T KNOW WHAT IS – but they are not the only “guilty” parties. Just the worst in UK…and that is before we learn the extent of RBS involvement in Libor rate-fixing.

So, if the original crimes weren’t enough to justify the “Public Inquiry” that Cameron and Osborne were so keen on, when they were in opposition in 2008(!), perhaps this latest scandal will change things. But I won’t hold my breath!

The fact of the matter is that, such an inquiry would have to ask far too many awkward questions implicating far too many influential firms and figures within, not only, banking but in Politics, FSA and “big four” Accountants.

So, in the meantime, it is a case of Business as Usual with banks and bankers believing themselves to be “above the law”! Content to treat customers, depositors, shareholders and Regulators with utter contempt.

Enhanced by Zemanta

Do you work in a “Corporate Death camp”?:: Prof Roger Steare on “Moral DNA”

One thing I have come to really appreciate about the “Corporate Philosopher’s” approach is his pursuit of the root cause of so many of the [Corporate] World’s ills. We can only really get reliable answers by establishing causality. That, albeit from a very different angle of attack, is what I attempt to do in business and what the technology developed by Dr Jacek Marczyk (Founder & CTO – “genius” according to this article) at Ontonix has facilitated with their model-free technology…but there is still a long way to go with spreading such understanding and insight!

But, if we are dealing with sources of systemic risk, that threaten the sustainability and resilience of ALL that we have come to rely upon, then this is a critical mission.

In the “risk society” we tend to get side-tracked, even bogged down, by the sheer volume of information that assaults our senses on a daily basis. Excessive complexity and the promotion of “flawed” correlations are allies of the leading exponents of the sick, prevailing, culture that the Prof. is intent upon “outing”. That is why TRANSPARENCY is such a threat to institutions or organisations that have cultivated and exploited an institutional mentality!!! Read more of this post

At the Intersection of Emotions and Intelligence: “If you’ve come to tell the truth, you’d better have a good horse outside the door”

I would love to claim this as my own work but that would be a pretty big and blatant lie! But I just HAD to share it because it MAY make some people think about the reality of life as a “sheep”!!!

If you hate what you do, don’t like what your employer, Government, Bank, Newspaper say, do or stand for but have spent years just “getting on with it” you aren’t doing anyone any favours. Not you, your family, co-workers, community or nation. You know what that’s why it has just got worse because too many people have just  taken it because it’s easier than challenging what is patently wrong…look where it has got you. Even if you are reasonably “secure”, are you happy with the compromises you have made (are making) and the fact that – if that illusion has been somewhat less secure since the global banking collapse – the true scale of collective inertia and apathy is yet to really impact you, those around you and those to follow after you??? Read more of this post