Sanity Needed When Punishing Finance Misdeeds
By Roy C. Smith
Indeed, there are fines and regulatory measures to address such failings. But the Libor settlements have gone way past these regulations – alleging that senior management knowingly tolerated fraud within their organisations, even though the managers themselves were not charged.
Now regulators are investigating the same banks’ activities in the foreign exchange market, an even larger market with turnover of $5 trillion per day. On a similar basis for calculating them, settlements could be much greater.
Both Libor and FX markets are unregulated, but banks that trade in them are subject to market conduct rules in the US, the UK and other countries. Several countries are co-operating in the investigations.
Read full article as published in Financial News
Roy Smith is the Kenneth G. Langone Professor of Entrepreneurship and Finance and a Professor of Management Practice.
More Opinions from Roy Smith
- "Sanity Needed When Punishing Finance Misdeeds," 12.2.13
- "A Light Bulb Moment for Bankers," 9.23.13
- "Investors Gain the Ear of the Listening Banks," 6.3.13
- "Make No Mistake, Size Matters with Systemic Risk," 5.6.13
- "Prosecutors Need Lessons in Spotting a Financial Avalanche," 2.11.13
- "The Ideal Christmas Gift for Mark Carney," 12.17.12
- "Wall Street Survives One Storm But Now Faces Another," 11.12.12
- "At last, Citi’s board takes over," 10.18.12
- "Dodd-Frank will test both Romney and Obama," 10.8.12
- "Barclays must address the strategic dilemma," 8.13.12
- "Time for Europe-wide FDIC Fund – and Quick," 6.18.12
- "Shadowland Will Take Care of JP Morgan," 5.28.12
- "Once and Future Investment Banks," 5.4.12
- "S-factor Spotlights Banks’ High Systemic Risk," 4.16.12
- "Bold Action Needed Over Bank of America," 3.5.12
- "Pandit Should Learn a Lesson from Reed," 1.9.12
- "Careful Where You Cut, a Bonanza Awaits," 11.14.11
- "Dimon’s Bank Can Ride a Storm of Rules," 10.17.11
- "Break Up the Banks, Even Goldman," 9.5.11
- "Dodd-Frank Shows Teeth on First Birthday," 7.4.11