As we wait it out, the LIBOR “scandal” provides instruction, maybe even salvation.
When we worked on the street there were gentlemen to be found, a sense of order, a shared moral compass. Now it appears that all that remains are moral lepers. Of course that must not be true; we are eternal optimists, always in search of the good in mankind. Are there any of the good left on Wall Street?
Sure. But on the whole you are paid for how much dough you bring in, not for how much worldly good you may accomplish. There is nothing illegal about this, about greed. If you go to work for a St firm don’t expect respect from your fellow human beings in the sense of respect directed towards a nurse, paleontologist or astronaut. You’ll have plenty of money, a good thing and you’ve earned it all legally, maybe. You just haven’t contributed much, like say a skilled irrigator for an artichoke farmer in Monterey, or a filmmaker or an Apache pilot, but again, there is no law yet against churning for a living.
But for some of the anointed, the big guys – major firms – the temptation can be too great. They’re not sure about the masters of the universe bit but they saw the movie and figure they’ll try it out now and then, see if it really works. One way to do that is to pay a depositor 0.05% on his CD, then risk the $ on a structured product that implodes, then come back to the same depositor and ask very kindly for a bailout, and lo and behold – get it! That’s pretty slick.
Yet human nature requires a stretch now and then, just to the edge, for the thrill of it if nothing else, even though the risk is to be taking your next meal through a slot. Cut corners and see what happens.
Here is where submitted rate manipulation comes in. Any fool knows it’s not just Barclays; no doubt BofA, Citi and good –ol JP are in up to their necks too. And with this will come the chant from Washington for more regulation. But in my time we behaved as gentlemen, at least those of us who submitted official rates did. We all behaved honestly. We had respect for ourselves and our firm; we did not change jobs every 9 months for a measly buck either. We most certainly did not need to be regulated because there was nothing to regulate.
So the problem is not one of lack of regulation, nor intrigue but society and the lack of civility. Licentiousness in our financial dealings has grown exponentially past two decades. Things are too easy. There is no respect for elders or for once-great institutions. There are no longer standards of behavior, only modes of behavior.
Finally, and key – there is no sense of responsibility on the Street any longer for the simple reason that you can get away with it; that is, you can be irresponsible and do quite well. In what other occupation is that possible? A plumber? Don’t think so.
So we have the answer. No longer is any bank, or anyone else, too big to fail. No longer is a phony currency cooked up by elitist types in Brussels too key to fail. No longer is there a parachute for fools and lechers. You screw up and that’s your own look out.
Take the pain. Stop the nonsense. Listen up, Washington.
Robert Craven
When we worked on the street there were gentlemen to be found, a sense of order, a shared moral compass. Now it appears that all that remains are moral lepers. Of course that must not be true; we are eternal optimists, always in search of the good in mankind. Are there any of the good left on Wall Street?
Sure. But on the whole you are paid for how much dough you bring in, not for how much worldly good you may accomplish. There is nothing illegal about this, about greed. If you go to work for a St firm don’t expect respect from your fellow human beings in the sense of respect directed towards a nurse, paleontologist or astronaut. You’ll have plenty of money, a good thing and you’ve earned it all legally, maybe. You just haven’t contributed much, like say a skilled irrigator for an artichoke farmer in Monterey, or a filmmaker or an Apache pilot, but again, there is no law yet against churning for a living.
But for some of the anointed, the big guys – major firms – the temptation can be too great. They’re not sure about the masters of the universe bit but they saw the movie and figure they’ll try it out now and then, see if it really works. One way to do that is to pay a depositor 0.05% on his CD, then risk the $ on a structured product that implodes, then come back to the same depositor and ask very kindly for a bailout, and lo and behold – get it! That’s pretty slick.
Yet human nature requires a stretch now and then, just to the edge, for the thrill of it if nothing else, even though the risk is to be taking your next meal through a slot. Cut corners and see what happens.
Here is where submitted rate manipulation comes in. Any fool knows it’s not just Barclays; no doubt BofA, Citi and good –ol JP are in up to their necks too. And with this will come the chant from Washington for more regulation. But in my time we behaved as gentlemen, at least those of us who submitted official rates did. We all behaved honestly. We had respect for ourselves and our firm; we did not change jobs every 9 months for a measly buck either. We most certainly did not need to be regulated because there was nothing to regulate.
So the problem is not one of lack of regulation, nor intrigue but society and the lack of civility. Licentiousness in our financial dealings has grown exponentially past two decades. Things are too easy. There is no respect for elders or for once-great institutions. There are no longer standards of behavior, only modes of behavior.
Finally, and key – there is no sense of responsibility on the Street any longer for the simple reason that you can get away with it; that is, you can be irresponsible and do quite well. In what other occupation is that possible? A plumber? Don’t think so.
So we have the answer. No longer is any bank, or anyone else, too big to fail. No longer is a phony currency cooked up by elitist types in Brussels too key to fail. No longer is there a parachute for fools and lechers. You screw up and that’s your own look out.
Take the pain. Stop the nonsense. Listen up, Washington.
Robert Craven
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