Fboo friend Kenneth O’Brien sent this across my desk this morning, and it’s a worthy read: The Real Reason Why Banks Have So Many Scandals.
The money quote:
So why can’t today’s bank CEOs prevent their employees from cheating and breaking the law? How come derivatives traders can get their buddies to submit false LIBOR quotes so they can make their trades look better? The amount of money at stake is certainly one reason. The individual payoffs are much, much higher than in other businesses. Another is complexity. It’s hard for managers, even those who used to be traders, to properly evaluate the sophisticated trades that are routine in a contemporary proprietary trading operation.
But the main reason is that they just don’t want to.