FIFA delegates getting their cummupence! Blatter GONE today.

[SilverFox2]

That's just not true. Banks spend millions and millions on ensuring payment compliance. A breach is one of the few things that can lend a banker in jail. It is therefore taken extremely seriously. I say this because I have some experience of it. Please don't fall into the trap of thinking this is widespread in banks because the governance and policing of it are extremely rigorous both internally and externally by the same law enforcement agencies that are investigating Fifa.

Unfortunately they fail and have to pay massive fines.

Don't recall too many going to jail though and CEO's seem to still get their massive bonuses despite allowing cartels (libor) and money laundering on their watch.

 

[Saddleworth2]

Unfortunately they fail and have to pay massive fines.

Don't recall too many going to jail though and CEO's seem to still get their massive bonuses despite allowing cartels (libor) and money laundering on their watch.

Yes, historically some have failed. I'm thinking hsbc in particular in some of their overseas business. But factually, the investment in both manpower and systems in payment compliance is massive and will have the highest priority in all of the major banks. A very small number of individuals have caused the reputation of the entire banking industry to be blackened which is tragic when millions of honest hard working people have given most of their working life to the industry.

 

[SilverFox2]

Yes, historically some have failed. I'm thinking hsbc in particular in some of their overseas business. But factually, the investment in both manpower and systems in payment compliance is massive and will have the highest priority in all of the major banks. A very small number of individuals have caused the reputation of the entire banking industry to be blackened which is tragic when millions of honest hard working people have given most of their working life to the industry.

In other words money is being spent 'massively' on self regulation yet an outside agency (FBI) can trace the problem and get convictions.

Forgive my cynicism but the taxpayer saved the banking industry and even our owner helped Barclays. Why is it so corrupt ?

 

[Saddleworth2]

In other words money is being spent 'massively' on self regulation yet an outside agency (FBI) can trace the problem and get convictions.

Forgive my cynicism but the taxpayer saved the banking industry and even our owner helped Barclays. Why is it so corrupt ?

Mate, it's not for this thread. If you want a serious discussion about the banking industry I will raise another one under 'off topic' but please let it not be just another media fuelled bank bashing frenzy.

 

[SilverFox2]

Mate, it's not for this thread. If you want a serious discussion about the banking industry I will raise another one under 'off topic' but please let it not be just another media fuelled bank bashing frenzy.

My point was not to bash the banks but merely to indicate that where a sector is awash with money very little can be done to control those who wish to use it to their own ends. In other words don't expect things to change at FIFA just because a new boss is likely to be elected.

 

[FogBlueInSanFran]

In other words money is being spent 'massively' on self regulation yet an outside agency (FBI) can trace the problem and get convictions.

Forgive my cynicism but the taxpayer saved the banking industry and even our owner helped Barclays. Why is it so corrupt ?

In the US at least, the taxpayer didn't "save the banking industry" -- the taxpayer saved the financial transaction system of the entire Western world. Do you know what happens to the modern, worldwide economy when credit is utterly frozen?

You want to blame something, blame the elimination of Glass-Steagal, which formerly separated the function of money center banks and investment banks. You want to know how a system can encourage double-dealing, creating of financial products that fold back in on themselves, ignorance of counter party risk and excessive risk-taking and ultimately massive mistake-making, blame that. Blame the creation of Fannie and Freddie and their lack of regulatory oversight. Blame the guy who invented the credit default swap, or Raineri who invented the securitized mortgage.

It's too easy for people who struggle with the finance industry's bewildering complexity (and who can blame them?) to settle on a convenient "truth", such as the industry's leaders are crooks and "corrupt". Maybe some are, but far, far more were incentivized to behave in perfectly legal but incredibly foolish ways in their pursuit of profit maximization (in a world where spreads have done nothing but come down for thirty years in their core businesses thanks to technology and falling interest rates). The regulatory system itself allowed for this behavior because it changed -- hell, you could say the system encouraged and supported it.

 

[FogBlueInSanFran]

My point was not to bash the banks but merely to indicate that where a sector is awash with money very little can be done to control those who wish to use it to their own ends. In other words don't expect things to change at FIFA just because a new boss is likely to be elected.

Now that last sentence . . . I agree 100%.

 

[SilverFox2]

In the US at least, the taxpayer didn't "save the banking industry" -- the taxpayer saved the financial transaction system of the entire Western world. Do you know what happens to the modern, worldwide economy when credit is utterly frozen?

You want to blame something, blame the elimination of Glass-Steagal, which formerly separated the function of money center banks and investment banks. You want to know how a system can encourage double-dealing, creating of financial products that fold back in on themselves, ignorance of counter party risk and excessive risk-taking and ultimately massive mistake-making, blame that. Blame the creation of Fannie and Freddie and their lack of regulatory oversight. Blame the guy who invented the credit default swap, or Raineri who invented the securitized mortgage.

It's too easy for people who struggle with the finance industry's bewildering complexity (and who can blame them?) to settle on a convenient "truth", such as the industry's leaders are crooks and "corrupt". Maybe some are, but far, far more were incentivized to behave in perfectly legal but incredibly foolish ways in their pursuit of profit maximization (in a world where spreads have done nothing but come down for thirty years in their core businesses thanks to technology and falling interest rates). The regulatory system itself allowed for this behavior because it changed -- hell, you could say the system encouraged and supported it.

Of course it is complex, the finance industry seems to thrive on inventing new ways to make more money.

I am not getting at the banking industry (as the reply prior to this post explains) but it would be nice to know why the FBI can find irregularities but the industry itself shrugs its shoulders at how difficult it is to stay legal (and keeps taking the bonuses).

 

[jimharri]

Read it and weep...

 

[Vienna_70]

Read it and weep...

He really has no shame, that man.