Tag Archives: TBTF

Bank Risk Culture: Now For Something Completely Different

The following is the fourth 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.

Thus far in this series on bank risk culture we are beginning to understand that there is really no such thing as a separate bank or organisational risk culture and that cultural change cannot be invoked by merely adding more rules and regulations. Continue reading

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Why Focusing On Bank Risk Culture Is Meaningless

The following is the third in a series of articles on bank risk culture. The previous articles can be accessed on the blog here.

In the previous articles we argued that it is futile if not impossible to separate the risk culture of an institution from the other aspects of culture within it. This article further develops this assertion by looking at some very specific examples of how banks got into trouble during the subprime crisis and why, in each case, only focusing on risk culture would have been totally inadequate.

In a January 2009, The Economist wrote an article on Citigroup entitled “A House Built on Sandy”, a less than veiled reference to the bank’s former CEO Sandy Weill and its troubles during the financial crisis. The article did not pull any punches and here are just a few of the statements it made: Continue reading

Why Banks Are Still In Trouble, How They Must Change

Address to the City Book Fair in London by Jonathan Ledwidge.

Clearing The Bull (Part 1) – Ending 30 Years Of Banking Failures  What banks must first do to stop repeating their history of failure.

Clearing The Bull (Part 2) – Why Banks Are Still In Trouble                   The moment of clarity banks need if they are to make real progress.

Clearing The Bull (Part 3) – How Banks Must Change                              An insider’s view on making the banking industry more human and more competitively and economically sustainable.

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

Clearing The Bull Part 3 – Why Banks Need A Human Transformation

Banker and author Jonathan Ledwidge addresses the City Book Fair in London and providers an insider’s view on why banks must make a human transformation as well as the specifics on how they can achieve it.

Watch Part 3 on youtube using this link http://youtu.be/L99b0ZZsUbc

and

Watch Part 2 – Why Banks Are Still In Trouble on youtube with this link http://youtu.be/cnsCbMuWYQc

Watch Part 1 – Ending 30 Years Of Banking Failure on youtube with this link http://youtu.be/evrheDydfto

Clearing The Bull Part 2 – Why Banks Are Still In Trouble

Banker and author Jonathan Ledwidge addresses the City Book Fair in London on why, despite changes made since the financial crisis, banks are still in trouble and are likely to remain in trouble for the foreseeable future.

Watch Part 2 on youtube using this link http://youtu.be/cnsCbMuWYQc

and

Watch Part 1 – Ending 30 Years Of Banking Failure on youtube with this link http://youtu.be/evrheDydfto

Watch Part 3 – Why Banks Need A Human Transformation on youtube with this link http://youtu.be/L99b0ZZsUbc

Clearing The Bull Part 1 – Ending 30 Years Of Banking Failures

Banker and author Jonathan Ledwidge addresses the City Book Fair in London, on what the banking industry must first do if they are to bring and an end 30 years of repeated failures.

Watch Part 1 on youtube using this link http://youtu.be/evrheDydfto

and

Watch Part 2 – Why Banks Are Still In Trouble on youtube with this link http://youtu.be/cnsCbMuWYQc

Watch Part 3 – Why Banks Need A Human Transformation on youtube with this link http://youtu.be/L99b0ZZsUbc

HSBC A Prime Example Of Why TBTF Means TBTM (Too Big To Manage)

In an earlier series of articles (Parts I, II and III can be found at the respective links) this blog set out the specific reasons why TBTF means TBTM. The troubles of HSBC in the US are a prime example of this maxim.

HSBC has been on a mission to be the “World’s Local Bank” and that sentiment is very proudly and profoundly expressed in its adverts—which by the way are very good. It is a pity that the same cannot be said for the bank.

In trying to achieve its global ambitions HSBC has had many missteps. In 2011, a subsidiary of HSBC was fined millions for selling products that had a minimum period of investment that was beyond the life expectancy of the pensioners they were sold to. The fact that the mis-selling went on for five whole years, from 2005 when HSBC acquired the company to 2010, speaks volumes about the bank’s ability to manage its affairs.

As distasteful as this was it pales in comparison to other HSBC missteps. In 2003 HSBC acquired the American subprime lender Household International. Phillip Inman of The Guardian wrote in an article entitled HSBC counts the cost of US housing market collapse:

Continue reading