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> It's not in the best interest of the banks to monitor their internals too closely. So keep raising the fines. make them proportional to the banks turnover, o
by clort 8y ago
> It's not in the best interest of the banks to monitor their internals too closely.
So keep raising the fines. make them proportional to the banks turnover, or their perceived size if it appears that they are trying to disguise profits. The leadership of the banks need to follow the rules too, and make sure that the organisation follows those same rules. Maybe they should be held accountable when that doesn't happen.
As we found out when Health & Safety legislation was enacted which did this, it turns out that when you start holding people personally accountable for their actions (or lack of), then changes start to happen in the culture of the workplace. I walked around a factory recently and they take the health and safety of themselves, their colleagues and their visitors very seriously.
- noneeeed 8y agoSeems like an effective approach to any fines would be to sum up the estimated profits they made, add in the estimated cost to innocent parties, then multiply it by some number. Of course that relies on someone actually being held accountable for a change...
- short_sells_poo 8y agoAlas, I don't think this is going to happen, because financial accidents are rarely gory so it's tricky to mobilize the masses. If someone gets pounded to pulp by a power hammer, that will get plenty of visceral coverage and politicians will latch on to score easy cookie points for being seen "committing good deeds". Finance is too abstract for this to work. "Big Bank Co ABC defrauding other institutional clients by XYZ billions" is so far removed from common folk that they can't relate to it. Some politicians will make some token moves, which (as described in another comment of mine) will just end up funneling some money into another special interest group and that's it.
- Mirioron 8y agoI wish people more readily accepted they human lives have a monetary value of some degree. If you cause a lot of monetary damages to a large number of people then that's going to lead to a cost in human lives. This way people might more readily accept what impact this kind of defrauding has.