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Are Bankers Good or Bad for Society (download)

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Comprehensive presentation with script found at http://thefinanser.co.uk/fsclub/2009/11/bankers-good-or-evil-the-full-monty.html

Are Bankers Good or Bad for Society (download)

  1. 1. Are bAnkers good or bAd for society? Chris Skinner, www.thefinanser.com Gresham College, 26th October 2009
  2. 2. Socially useful? “Some of it is socially useless activity” Adair Turner
  3. 3. “Banks have chased short term profits by introducing complex products of no real use to humanity” Stephen Green
  4. 4. “Don’t have headlines saying banks are ‘socially useless’, because they ain’t.” Victor Blank
  5. 5. “As society, we have benefited hugely from innovation and financial services is at the forefront.” Win Bischoff
  6. 6. AgendA bAnking is essentiAl for society bAnkers role in society bAnkers morAls And ethics bAnking for good or for bAd bAnkers todAy bAnkers tomorrow
  7. 7. revolutions Formalising commerce – the first time agriculture www.balatroltd.com
  8. 8. www.balatroltd.com
  9. 9. A Babylonian shekel coin minted much later under Persian rule (c. 300BCE).
  10. 10. http://www.josephinemaisonet.com/Photos/G oddesses/Inanna.jpg
  11. 11. AgendA bAnking is essentiAl for society bAnkers role in society bAnkers morAls And ethics bAnking for good or for bAd bAnkers todAy bAnkers tomorrow
  12. 12. “The most common communicatio problems that create stress in a marriage are usually related to finances and sex” www.divorce.com
  13. 13. AgendA bAnking is essentiAl for society bAnkers role in society bAnkers morAls And ethics bAnking for good or for bAd bAnkers todAy bAnkers tomorrow
  14. 14. My house was designated a house of prayer; You have made it a hangout for thieves.
  15. 15. UsUry
  16. 16. AgendA bAnking is essentiAl for society bAnkers role in society bAnkers morAls And ethics bAnking for good or for bAd bAnkers todAy bAnkers tomorrow
  17. 17. leverAge
  18. 18. risk
  19. 19. herd
  20. 20. Lex Pompeia
  21. 21. complexity
  22. 22. AgendA bAnking is essentiAl for society bAnkers role in society bAnkers morAls And ethics bAnking for good or for bAd bAnkers todAy bAnkers tomorrow
  23. 23. My role is to “find the chinks in the regulators’ armour” Salomon’s General Counsel, Donald Feuerstein
  24. 24. “In our view, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal. Warren Buffet Berkshire Hathaway Annual Report, 2002
  25. 25. “It is not that humans have become any more greedy than in generations past. It is that the avenues to express greed have grown so enormously.” Alan Greenspan July 2002
  26. 26. “It is not that humans have become any more greedy than in generations past. It is that the avenues to express greed have grown so enormously.” Alan Greenspan July 2002
  27. 27. leverAge risk herd complexity
  28. 28. leverAge networked complexity
  29. 29. Banks have written off $1.6 trillion so far Bloomberg
  30. 30. Our regulators were “asleep in the back shop while there was a mugging out front” John McFall
  31. 31. “A British bank is run with precision A British home requires nothing less! Tradition, discipline, and rules must be the tools Without them - disorder! Chaos! Moral disintegration! In short, we have a ghastly mess!”
  32. 32. AgendA bAnking is essentiAl for society bAnkers role in society bAnkers morAls And ethics bAnking for good or for bAd bAnkers todAy bAnkers tomorrow
  33. 33. “For people to have been selling products which they neither knew or understood – or, worse, did know and none the less did sell – is a profoundly moral issue.” Ken Costa
  34. 34. “To restore trust and confidence, we will need to recognise the moral dimension of what has happened, and to restore a proper sense of values in our corporate lives” Stephen Green
  35. 35. Victor Blank “You have to find where the problem lies ... Investment banking”
  36. 36. “Financial services innovation must be performed with foresight and regulation.” Win Bischoff
  37. 37. http://thefinanser.co.uk/fsclub/2009/02/the-new-eu-regulator-and-liquidity-risk.html
  38. 38. The Value of Bank Brands 2009
  39. 39. conclUsions
  40. 40. “If this crisis leads to a genuine reassessment of the role of ... banking ... it may come to rank as one of the great turning points in history.”
  41. 41. “The financial sector that is emerging from the crisis is even more riddled with moral hazard than the one that went into it.” Martin Wolf
  42. 42. “Be greedy when others are fearful and fearful when others are greedy.” Warren Buffett
  43. 43. Are bAnkers good or bAd for society? Chris Skinner, www.thefinanser.com Gresham College, 26th October 2009

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