This Is Moral Hazard [JESSE'S CAFÉ AMÉRICAIN]
July 11, 2012 Leave a comment
“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.