The New York Times
November 20, 2014
The attention directed at the purportedly astounding foreign exchange manipulation fines is misdirected. Everyone should be running to ordinary American, British and Swiss citizens and ask how they feel about these banking scandals just a few years after the banks were bailed out. The misconduct continues to demonstrate the disregard among large banks for the most basic of risk management principles, not to mention ethics.
Investors need to focus on operational risk, the breach in the day-to-day running of a bank as a result of people, processes, technology and external threats such as cybersecurity or outsourcing. First and foremost, it is people that are at the heart of all these banking scandals. Yes, the traders manipulated the foreign exchange rates, but the directors, senior executives and investors in banks’ bonds and stocks, collectively, set and influence the tone for a bank’s culture of ethics…Read More