This Is Moral Hazard
"A quarter of Wall Street executives see wrongdoing as a key to success, according to a survey by whistleblower law firm Labaton Sucharow released on Tuesday." The financial system has become a culture of white collar crime and control fraud. We all know it by now.
Bad behaviour drives out the good, if the bad behaviour is seen to be a quick route to success amongst the morally weak and ambivalent.
As the former CEO of Citigroup, one of the biggest TBTF banks, observed during the widespread credit derivatives fraud:
“When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.”
The government, the regulatory bodies, the media, economists, and the corporate executives bear a heavy responsibility for this.
They will not admit it, and they cannot reform it, because they themselves are caught in the credibility trap.
Right now white collar crime in the financial system is all carrots and no sticks. The problem is obvious.
Don't whine. Don't pout. Don't complain. Do something.
Many Wall Street executives says wrongdoing is necessary
By Lauren Tara LaCapra
Jul 10, 2012
(Reuters) - If the ancient Greek philosopher Diogenes were to go out with his lantern in search of an honest man today, a survey of Wall Street executives on workplace conduct suggests he might have to look elsewhere.
A quarter of Wall Street executives see wrongdoing as a key to success, according to a survey by whistleblower law firm Labaton Sucharow released on Tuesday.
In a survey of 500 senior executives in the United States and the UK, 26 percent of respondents said they had observed or had firsthand knowledge of wrongdoing in the workplace, while 24 percent said they believed financial services professionals may need to engage in unethical or illegal conduct to be successful.
Sixteen percent of respondents said they would commit insider trading if they could get away with it, according to Labaton Sucharow. And 30 percent said their compensation plans created pressure to compromise ethical standards or violate the law.
"When misconduct is common and accepted by financial services professionals, the integrity of our entire financial system is at risk," Jordan Thomas, partner and chair of Labaton Sucharow's whistleblower representation practice, said in a statement...