Bloomberg contributor Willam Cohan writes that 'there is no question that bankers, traders and executives need help reining themselves in. After all, it was their collective actions that brought us the financial crisis in 2007 and - as if nothing had been learned about irresponsible behavior - the current scandals about manipulating the London interbank offered rate, the $6bn loss on an ill-advised proprietary bet by a handful of traders at JPMorgan and the accusations of money-laundering at HSBC.
Now, of course, Wall Street’s highly paid lawyers and lobbyists are working overtime to rewrite the regulations mandated by the Dodd-Frank law. It’s enough to make you wonder if the industry, which has been the envy of the world and the engine for much of the growth and innovation in the U.S. economy, has a screw loose and is on a path to self-immolation.
Among others, James Surowiecki, the New Yorker’s financial columnist, has wondered what could be done. When it comes to manipulating Libor, he suggested, the answer is simple enough: Make it harder for banks to game the system. 'Then we need to admit that fraud is a crime and throw some people in jail', he wrote'.
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image: © David Shankbone