are bankers good or bad for society (download)

Are bAnkers good or bAd for society?

Chris Skinner, www.thefinanser.comGresham College, 26th October 2009

Socially useful?

“Some of it is socially useless

activity”Adair Turner

“Banks have chased short term profits by introducing complex products of no real use to humanity”Stephen Green

“Don’t have headlines saying

banks are ‘socially useless’, because

they ain’t.”Victor Blank

“As society, we have benefited hugely from innovation and financial services is at the forefront.”Win Bischoff

AgendAbAnking is essentiAl for society

bAnkers role in societybAnkers morAls And ethics

bAnking for good or for bAdbAnkers todAy

bAnkers tomorrow

ww

w.b

alat

roltd

.com

revolutions

Formalising commerce – the first time

agriculture

ww

w.b

alat

roltd

.com

A Babylonian shekel coin minted much later under Persian rule (c. 300BCE).

http://www.josephinemaisonet.com/Photos/Goddesses/Inanna.jpg




bAnkers tomorrow

“The most common communicatio problems that create stress in a marriage are usually related to finances and sex”www.divorce.com




bAnkers tomorrow

My house was designated a house of prayer;You have made it a hangout for thieves.




bAnkers tomorrow

leverAge

Lex Pompeia

complexity




bAnkers tomorrow

My role is to “find the chinks in the regulators’ armour”

Salomon’s General Counsel, Donald Feuerstein

“In our view, derivatives are financial weapons of mass

destruction, carrying dangers that, while now

latent, are potentially lethal.Warren Buffet

Berkshire Hathaway Annual Report, 2002

“It is not that humans have become any more greedy than in generations past. It is that the avenues to express greed have grown so enormously.”

Alan Greenspan

July 2002

complexityherd

leverAgerisk

complexity

leverAge

networked

Banks have written off $1.6 trillion so far

Bloomberg

Our regulators were “asleep in the back shop

while there was a mugging

out front”John McFall

“A British bank is run with precisionA British home requires nothing less!

Tradition, discipline, and rules must be the toolsWithout them - disorder! Chaos!

Moral disintegration!In short, we have a ghastly mess!”




bAnkers tomorrow

“For people to have been selling products

which they neither knew or understood –

or, worse, did know and none the less did sell – is a profoundly

moral issue.”

Ken Costa

“To restore trust and confidence, we will

need to recognise the moral dimension of

what has happened, and to restore a proper

sense of values in our corporate lives”

Stephen Green

Victor Blank“You have to find where the problem lies ... Investment banking”

“Financial services innovation must be performed with foresight and regulation.”Win Bischoff

http://thefinanser.co.uk/fsclub/2009/02/the-new-eu-regulator-and-liquidity-risk.html

The Value of Bank Brands2009

conclUsions

“If this crisis leads to a genuine reassessment of the role of ... banking ... it may come to rank as

one of the great turning points in history.”

“The financial sector that is emerging from

the crisis is even more riddled with moral

hazard than the one that went into it.”

Martin Wolf

“Be greedy when others are fearful and fearful when others are greedy.”

Warren Buffett

Are bAnkers good or bAd for society?

Chris Skinner, www.thefinanser.comGresham College, 26th October 2009

are bankers good or bad for society (download)

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