The latest round of fines on banks for manipulating the Forex fix rates are starting to be announced. A Daily Telegraph article suggests the total bill of penalties for this misconduct is $300bn. Who bears this cost? It is the shareholders and customers of the banks. For shareholders read pension funds in many cases. It is time for the Directors of the banks to earn their massive remuneration and to either bring their traders under control or go penniless from their god-like positions.
It should have come as no surprise to bankers managers that traders will tend to misbehave and cut corners. If there had been a true desire to prevent this type of activity it could have been avoided. Ethical behaviour and integrity of actions has a very low cost. Dishonest actions seem to have a much higher end cost.
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