Does Money alone Matter?
1. Dictionary.com says that
contentment is a the state of being contented (it is about)
satisfaction; ease of mind. Wikipedia says that contentment is the
acknowledgement and satisfaction of reaching capacity.
Contentment emanates from people,
objects and situations in the world. Contentment is a state where the mind does
not want anything else from the world. This state appears ephemeral; contentment seems to be triggered by something
that is temporary and finite at least in the case of bankers.
So people who served with fairly
good pay packets and are policy makers retire. At retirement they appear contented
with their long and arduous jobs. They leave desks happy: until the next
tempting offer from a private finance company / hedge fund / bank comes.
Senior retirees who joined or are likely to join big
investment firms ostensibly for attractive
monetary compensation reportedly confirm that contentment is only over the
short term. (Alan Greenspan- Paulson & Company, PIMCO and Deutsche
Bank; Paul Volcker-Wolfensohn & Co.; Jeremy Stein- BlueMountain Capital; Timothy Geithner, - Warburg
Pincus; Ben Bernanke -Citadel?.)
2. Instances where there bankers have
let the customers and regulators down :
Case 1) London Inter-Bank Offered Rate (LIBOR) was a yardstick
which was developed by the regulators and the Bank of England. The Libor priced
the loans made to mortgages and commercial loans. Normally around midday every
day the bank tried to set a fair
assessment of the interest rates by obtaining quotes from some big banks, some
medium-sized banks and some small banks. This was under the approval of the
Bank of England. The bankers then added up the numbers and divided by the
number of participants (ranging from 7 to 14) and that was Libor. The Libor
rate is the benchmark for loans, mortgages and products in the financial world
which run into trillions of dollars. Barclays fixed these rates at various
centres, in various deals and through a host of traders. Barclays managers lied.
(Case 2) HSBC paid a $ 1.9 billion to US authorities for not
adhering to regulations on money laundering. HSBC violated sanctions in bank
with violating sanctions laws by doing business with customers in Iran, Libya,
Sudan, Burma and Cuba. HSBC has
reportedly been helping customers avoid taxes.
(Case 3) Lloyds
Bank sold insurance products to people who did not need them or would be
ineligible for them.
(Case 4) Deutsche Bank's former CEOs are reportedly accused of
lying and attempted fraud and lied in testimony to German judicial authorities.
(Case 5) Bank of England has invited investigations by Serious
Fraud Office in regard to liquidity auctions it made in 2007 - 2008.
(Case 6)
Commonwealth Bank of Australia's two
senior IT executives were involved in bribery and fraud. These men, allegedly
amassed at least $US1.5 million in kickbacks in return for awarding technology contracts to a cloud services company.
Without any risk or responsibility
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