Other Peoples’ Money & A Code of Conduct

Information is readily available about the unconscionable conduct of international banks and their staff when dealing with other peoples’ money.  Today’s Australian Financial Review carries a front page article about the alleged toxic and unconscionable culture within the trading rooms of a leading Australian bank.

The movie recently released called “The Big Short”* also presents the unconscionable behaviour of the financial system in dealing with other peoples’ mortgages.

It is reasonable to conclude that the game being played at a child’s party called pass the parcel, which stops when the music stops, is being played continually by unconscionable people within the banking industry, at a faster pace than we can ever imagine.  The parcel being passed between the bankers is other peoples’ money and when the music stops the parcel disintegrates, as it is found to be empty.  Chuck Prince described the financial services business, prior to the GFC, and prior to his termination from his position as the head of Citygroup, with the words, “as long as the music is playing, you’ve got to get up and dance”**.  Prince was forced from his office after Citygroup was bailed out of their fate by the US taxpayer with more “other peoples’ money”!

In the highly researched text by John Kay called “Other Peoples’ Money”, Kay suggests that a “Code of Conduct” for the total financial services industry would be highly beneficial.  The International Sales Institute has a completely appropriate and relevant Code of Conduct which, if implemented by the financial services industry, would go a long way to demonstrating to the public, that those in charge actually understand their responsibilities when dealing with other peoples’ [your!] money.

 

**Referenced in “Other Peoples Money” by John Kay as:
“Nakamoto, M., and Wighton, D., 2007, ‘Citigroup Chief Stays Bullish on Buy-Outs’, Financial Times, 9 July.

 *The Big Short – Trailer #1 link above.  Trailer #2