Remember when banks were stodgy, low risk and trustworthy? It’s certainly not your fathers banking industry today, with crazy investments leading to highest of high gains and lowest of low losses. Why should anyone trust banks to properly tend to our hard earned money? The Societe Generale story continues to unravel and it’s ugly. On the somewhat positive side, it should be noted that the SocGen CEO immediately offered to resign (that was rejected by the board) and he will not take a salary until June. I’ve said it countless times before, but after 9/11, how many resignations did we see in America? After all of the failures we’ve seen on Wall Street, how many executives offered to resign without massive handouts? Have we really sunk this low?
Look at Wall Street where platinum parachutes have kindly been handed out following horrendous losses. Spin it however you like, but losing billions upon billions whether by iffy business based on smoke and mirrors or a single trader (which I struggle to believe), this is fundamentally wrong and should not be rewarded. I don’t give a damn what’s in a contract, it’s wrong to keep rewarding failed executives. They have no issue with riding roughshod over others who have contracts and it’s high time we start doing the same or modernize our contracts. We need a change in attitudes in the industry and beyond. These people are trashing our system and it’s high time we demand change.