Financial Industry Has Ethics Problem. Big Banks Will Pay Big Fines For Interest Rate Fixing.

Discussion in 'The Pub' started by skronker, May 20, 2015.

  1. skronker

    skronker 2010/2013/2015 S.C. Champions Gold Supporting Member

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    I'll post two recent stories one Is how the some major banks and financial houses colluded to fix interest rates that effected everyone.
    The banks will pay about $6 bil. in fines but it is a drop in the bucket compared to how much money they raked in over the 6 yr. period in which they manipulated the interest rates.

    Citicorp, JPMorgan Chase, Barclays, The Royal Bank of Scotland and UBS AG have agreed to plead guilty to felony charges and pay billions in criminal fines, the Department of Justice says. The offenses range from manipulating the value of dollars and euros to rigging interest rates.

    http://www.npr.org/sections/thetwo-way/2015/05/20/408215382/big-banks-pay-5-6-billion-plead-guilty-to-felonies-over-currency-fixing-scheme

    The second story is how there is a severe ethics problem with many of the people who work in the financial industry which in turn is the major cause of the interst rate fixing that the banks were just found guilty of.

    Among the more than 1,200 financial professionals in the U.S. and Britain who were surveyed, about half the respondents believe their competitors in the industry have behaved unethically or illegally to gain an advantage in the market.

    http://www.npr.org/2015/05/19/40801...ethically-looms-over-wall-street-survey-finds
     
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  2. Blue Strat

    Blue Strat Member

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    These are the same guys who always claim that they do everything to maintain/improve shareholder value. Problem is, this affects shareholders adversely.
     
  3. FFTT

    FFTT Member

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    Too big to fail
    Too well connected to jail
    When all hell breaks loose, they bail
     
  4. skronker

    skronker 2010/2013/2015 S.C. Champions Gold Supporting Member

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    Yeah I remember when they were saying they wouldn't be able to retain the "best and the brightest" in the industry if stricter regs were put in place.

    Well it seems as if the "best and the brightest" are the people who are willing to cheat and rig the system.
     
  5. skronker

    skronker 2010/2013/2015 S.C. Champions Gold Supporting Member

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    The more money there is to make the more likely the person is to act in an unethical manner.

    "Young professionals, people with less than 10 years in the financial service industry, tended to be more open to engaging in illegal and unethical behavior. And that's our future — that is the future of the financial service industry and right now it looks bleak," Thomas says.


    The latest study also found that more than a third of those earning more than $500,000 annually say they've actually witnessed, or have firsthand knowledge of, wrongdoing in the workplace. And nearly one-third of those responding to the survey say they believe compensation structures and bonus plans could incentivize employees to compromise ethics or break the law.


    Professor Lynn Stout, an expert of corporate ethics at Cornell Law School, says that's just part of the problem.


    "A second really damaging element of incentive pay is that it's especially attractive to people who are willing to break ethical rules because they see opportunities to earn salaries and to make money that more ethical people would not want to take advantage of," she says.
     
  6. Madsen

    Madsen Member

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    these guys are great.







    Max Keiser also also rants about this stuff all the time. Just don't ask him anything about Russia.
     
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  7. zzmoore

    zzmoore Member

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    Corporate window dressing. Just the cost of doing business.
    A few LOW LEVEL scape goats will go to jail.
    THE COMPANY did wrong, not the executives, none will go to prison.
    Next.......
     
  8. Greggy

    Greggy Member

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    "Mistakes" were made.
     
  9. Rick Lee

    Rick Lee Member

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    I've worked in financial services and saw plenty of stuff that was quite legal, but probably shouldn't have been. I know of a mortgage broker who's just now finishing his seven year stay in Club Fed. What he did was definitely illegal and he asked us to help him, though didn't reveal to us it was fraudulent. We simply refused to take the deal because it looked suspicious, but didn't turn him in. He was caught a little later.
     
  10. bayAreaDude

    bayAreaDude Member

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    I got out of that industry because it's filled with liars and criminals. Hopefully one day the public will wise up and realize they're being abused and actually demand penalties that will make an impact.
     
  11. RTM1216

    RTM1216 Member

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    Same here. I lasted about a year before I couldn't deal with it anymore. Seeing people literally steal from others who put their trust in them, and all of it was legal, but not considered ethical even though everyone was doing it. I filed SEC complaints prior to leaving but they were apparently ignored. I'd rather earn half what I was making in finance and be able to go to sleep at night with a clean conscience.
     
  12. Skeet skeet!

    Skeet skeet! Member

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    I was gently mocked for being anti-bank by someone on this forum in another conversation.

    Seriously, who is pro-bank other than the people that are connected to their wealth?
     
  13. tiktok

    tiktok Supporting Member

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  14. Rick Lee

    Rick Lee Member

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    I am. I use a credit union and USAA and both have been great to me. Never paid a fee for anything other than a cashier's check once in a while. They've always been great about customer service, quick loan approvals, etc. I'd be in rough shape without them, as I like to pay my bills online from my checking accounts. I have a mortgage with BofA, whom I hate for other reasons. But a good friend was working there at the time and got me a smoking deal on my interest rate. The only banking complaint I think I have is that my Chase Sapphire card has been compromised and shut down three times in less than a year. How are the banks screwing me again? Oh yeah, I'm really sick of all the mail Wells Fargo sends me. I have an IRA through them because my good buddy who handles it recently left Edward Jones and I let him take my account with him.
     
  15. greggorypeccary

    greggorypeccary Member

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    I think the public is wise enough to this and thinks that a lot of these folks should be in jail. Unfortunately the way things are, that is unlikely to happen...'too big to fail', 'the only people who can get us out of this mess are those who got us into it', etc.
     
  16. bayAreaDude

    bayAreaDude Member

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    Greedy would be criminals who would happily work at a bank.
     
  17. korby

    korby Member

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    Just the " fine recipient " getting it's cut .
     
  18. fredgarvin

    fredgarvin Member

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    Nearly everything you learned while being glued to the TV as a child, watching advertising, was a lie. But now you're mad because someone cheated and lied while performing their jobs. Oh and they have more money than you.
     
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  19. s2y

    s2y Member

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    So, there's corruption where there's lots of money to be had? Since when!?

    I don't think anyone will argue for the banks. Hopefully the history books don't forget to include that part of the equation involved people wanting to have a little more than they could afford.

    My bank tried to sell me on a bigger house. I declined. The car dealership tried to sell me on a more expensive model. I declined. Toyota alerted the dealership when I paid off my car and they tried to sell me a new one. I declined. It's not that hard.

    We need to protect ourselves from the stupid and the greedy. (insert nanny state comment here)
     
  20. taez555

    taez555 Member

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    As long it's legal how can it be unethical.
     

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