For some time now I have been asking myself why the world’s leading bankers have still been unable to talk directly to the masses in order to apologise for their role in creating a financial crisis in which so many people suffered and commit to doing their best in order to avoid the same thing happening again. Continue reading
Posted in Banking, Business, People
Tagged ABN AMRO, Anglo Saxon, Banks, Controls, Culture, Employees, Goldman Sachs, Governance, Human, Investment Banking, managers, people, strategy, UBS
Banks that are too big to fail or TBTF are by definition also too big to manage or TBTM. In Part II of the series we look at the role played by the growth of products and markets in this phenomenon. Part I can be found here.
What is it about the industry that makes banks so susceptible to becoming TBTM or too big to manage? As noted in Part I, egos and megalomania do play a significant part. However, they are definitely not the whole story.
For many bankers, performance is synonymous with size. Bankers take it as gospel that the greater their share of a particular product market, the greater the profits to be earned from that market. It is obvious that such a proposition does not necessarily hold true.
Posted in Banking, Business
Tagged Banks, Business, credit derivatives, economy, financial crises, Financial Crisis, Goldman Sachs, herd mentality, JP Morgan, markets, Merrill Lynch, Mortgages, Risk, Risk Management, Subprime, TBTF
This is the third in a three-part series of articles on the financial crisis. The links for Part I and Part II can be found here and here respectively.
A New Strategic Business Model – The Human Asset Bank
Our analysis in Part II demonstrates that the financial crisis was from beginning to end about human failings and the values, or lack thereof, which gave rise to those failings. As such, an appropriate remedy must be based on the human ecosystem that surrounds each bank and the industry as a whole.
I call this human ecosystem of banks and the values necessary for them to achieve economic and competitive sustainability The Human Asset Bank. However, the change we seek can only come about if banks, and the industry as a whole, show wholehearted and genuine commitment to making such a change. This is entirely consistent with our opening proposition in Part I – that more legislation, more regulations, more governance and more controls are not what banks need.
Thus, a commitment to change and to The Human Asset Bank would be as follows: Continue reading