Tag Archives: Regulators

Banks Desperately Need A Crisis Management Plan (Part 2)

A few days ago I posted an article, which can be found here, setting out why banks needed to up their game in terms of developing a plan to manage the current crisis, otherwise they faced the imposition of regulations and higher capital requirements that would be bad for them and bad for their economies. Well both Barclays and Deutsche just got a nasty surprise. Continue reading

Advertisements

The Commitment That Banks Must Make For A Better Future

The following is the seventh and final article in a series on bank risk culture. The previous articles can be accessed here or by clicking the HOME tab on the blog.

A total meltdown in any industry requires nothing less than a total rethink of the way forward. However, rather than finding themselves engaged in a total rethink of the how and why they must transform their business, banks have been engaged in responding to more legislation and regulation as well as improving their governance and internal controls.

The problem for banks is that neither governments nor regulators can create a better future with great institutions—only bankers themselves can. Continue reading

Outdated technology could lead to another crisis in banking

This blog has maintained that the lack of proper IT and systems is a major concern for the banking industry. Here is the proof, if indeed any was needed, from the pages of the FT.

Outdated technology could lead to another crisis in banking

The FT goes even further and suggests that the failure of such systems could lead to both a financial and social crisis.

This is why I have always believed that the most important response to the problems within the banking industry is not what governments and regulators can do but what bankers themselves can achieve. Governments and regulators should take heed. IT systems are a major source of risk within banks which no amount of legislation and regulation can remedy.

This is also another example of why focusing solely on the risk culture of banks is simply not good enough–as has been clearly demonstrated in the series of articles on the blog.

Jonathan Ledwidge is the author of the book Clearing The Bull, The Financial Crisis And Why Banks Need A Human Transformation (iUniverse).

Bank Risk Culture: An Alternative View On The Causes Of The Last Financial Crisis

The following is the sixth in a series of articles on bank risk culture. The previous articles can be accessed here or by clicking the HOME tab on the blog.

A total meltdown in any system requires nothing less than a total rethink of the way forward.

Legislators and regulators have blamed the subprime financial crisis on a whole host of issues including derivatives, proprietary trading, deregulation, the collapse of Glass Steagall and the integration of retail and investment banking, as well as the overall failure of risk management and corporate governance. What we have learned so far in this series of articles is that the actual reasons are somewhat different as they relate to the overall culture of banking. Continue reading

Banks, Governments And Regulators Must Define Culture Before They Can Change It

Changing the culture of banks is a difficult task. However, given that the parties involved in making that change; banks, governments and regulators, are yet to define what it is they are trying to change, it makes their task not only difficult but practically impossible. Continue reading

Clearing The Bull on the Financial Crisis

A book on the financial crisis everyone can read and understand what bankers, regulators and politicians have been up to.

I am very happy to announce the formal launch of my new book Clearing The Bull: The Financial Crisis and Why Banks Need a Human Transformation

In plain and simple language it explains what actually caused the financial crisis, how history keeps repeating itself, why the current solutions are all wrong, and how we can create a better more sustainable industry.

Kindle / E-book prices are highly competitive at £2.63, $4.07, €3.14. All versions of the book are available here:

Amazon.com
Amazon.co.uk
Amazon.de
Amazon.ca

Enjoy!

Ledwidge – The Blog

There is the mass media, there are blogs, and then there is Ledwidge.

It is amazing just how much of what we see and hear, irrespective of the source, still conforms to the conventional or a variation thereof.

For example, I have watched with some amount of trepidation, cynicism and concern, the current debate on the nature of banking. On the one hand there are governments and regulators who sincerely believe that more regulations will solve the problems of the industry. On the other hand there are bankers who sincerely believe that by merely improving governance and controls they can avoid another crisis.

Neither of these parties recognizes that the answers to this crisis lie in the human domain and both remain wedded to the same old remedies used in previous crises.

Unfortunately, the role of the media in all of this is to generate more heat than light.

It is what prompted me to write Clearing The Bull.

Politics and government is similarly disturbing. We have problems, both economic and social, that can only be remedied over a period of several election cycles. However, our politicians no longer argue right and wrong they argue right and left (with the media falling in line behind them). Thus, we have found ourselves in the unfortunate situation where our economic cycle is in conflict with our political cycle.

And we the people are left to bear the consequences.

The primary objective of this blog is therefore to bring new ideas and perspectives on issues surrounding banking, business, people and politics. The hope is that we at least might be able to change a few minds and mindsets.

Welcome

Jonathan Ledwidge