An open discussion about ethics in financial services and banking.
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Mark wrote in and asked:
“Can ethics govern how business operate with reference to the banking industry?”
What do you think? Comment below.
No Response for "Mark Wants Your Opinion About Banking Ethics"
In my humble opinion, no.
A prime example of ethics not governing the banking industry is taking place as we speak. The US Treasury is pushing billions of dollars out the door for the expressed purposes of loosening credit and unfreezing main street businesses – and ultimately, the consumer.
Instead, money center banks are taking in billions of taxpayer dollars and hording them to purchase the next credit calamity victim (read = bank). I believe that is in direct conflict with the spirit of the rescue legislation, and the circumstances under which the legislation was passed.
From a legal perspective, ethical is not necessarily moral. If a law is written and someone follows the law, that person is being ethical.
But from a moral perspective, following the law, but twisting the intent of the law in order to increase shareholder value, is unethical.
Banks, brokerage firms and insurance companies have done that for years.
Where else but on Wall Street would you have the fox guarding the hen house (FINRA)?
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