Bad Behavior Continues for the Banking Industry

Friday, July 06, 2012

Former Barclays Chief Executive Bob Diamond leaves a Parliament hearing on July 4, 2012 in London, England. (Matthew Lloyd/Getty)

Ever since the 2008 financial crisis, we've heard story after story about bad behavior in the financial industry. In the most recent, bankers at Barclays were found to have rigged Libor, the London-based lending rate that is used throughout the world. The scandal led to the resignation of the former CEO of Barclays, Bob Diamond.

For a closer look at bankers and their industry, we turn to Terri Duhon, financial expert and author and a former derivatives trader with JP Morgan.

Guests:

Terri Duhon

Produced by:

Joe Hernandez

Comments [4]

I'm SO tired of the reactions to "scandals" in the finance industries. We are shocked, SHOKED each time a C something O of yet another institution is found with his or her hand in yet another pot.

It is so simple to me, who know nothing about finance. Money is a finite resource. The only way to increase the amount in one pot is to take it from another one. Moreover, those managing said pots get their compensation in direct relation to how much the pot fills up. More regulations mean only an increase in the pool of brains charged with subverting said regs. (It breaks one's heart to see how many smart young kids' goal in life is to join the ranks of those pools.)

These are smart people who do nothing to better society. And they have politicians in their small pockets, and we all know why.

So let's stop wringing our hands, they are raw already. Come to think about it, law firms do pro bono work to increase their prestige. How about making pro bono work mandatory for moneychangers? Something like put them in charge of increasing a library's funds or those of a small museum, etc?! That will be the day.

Jul. 06 2012 08:46 AM

I really wish you had delved more into the compensation structure of the investment banking world. The inherent shortcomings of pay based on volume rather than quality IS the systemic problem in the financial sector.

And yes, I was being facetious before. Flippancy is my default position.

Jul. 06 2012 08:36 AM
WL Buck from Hancock, MI

Terri Duhon's interview was poorly conducted. Why allow such weak thinking to go on and on?

Jul. 06 2012 08:21 AM

Aren't America's hardships due to Municipal and State Workers, welfare recipients and deleterious regulations? Bankers are innocent victims of the Community Reinvestment Act, aren't they?

Jul. 06 2012 08:07 AM

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