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Be angry at bankers, be angrier at economists (Ann Pettifor)
Orthodox economists stand aloof from a crisis of their own making. Time for a public inquiry where they can be interrogated
(Those who know me know that this is music to my ear. Those familiar with my writings know well about my respect for economics as it was, a branch of moral philosophy, and my scorn and dislike for economics as it has become, a moral/spiritual-free zone, a dismal science par excellence; of use no one or anything. Therefore, it should come as no surprise that I wish to share this excellent article with you. Please find time to read it, and be inspired by it.)
Be angry at bankers, be angrier at economists
…” But this scandal is just a symptom of a much bigger dysfunctional banking system, one that is staunchly upheld by the British establishment – many of whom have their heads firmly below the parapet. And it is a direct result of the flawed, mainstream economic theories on which the global, so-called free market in money has been built.
So, while I do of course regard the speculative and often fraudulent activities of our bankers with disdain, I reserve my real anger for the economics profession, both professional and academic.”…
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…on the contrary, crime does pay.
(It all depends on who does the crime!)-Photo:Medium
In today’s Guardian (29 June 2012), the distinguished columnist, Jonathan Freedland remarked that:
“If the authorities were consistent, they would punish the banks just as severely as they reacted to last year's rioters…But those in the financial stratosphere apparently see matters of right and wrong, crime and punishment, rather differently to the rest of us. It was the same Bob Diamond who last year told MPs, "There was a period of remorse and apology for banks and I think that period needs to be over" – calling time on the era of bankers' penitence before most thought it had begun.
…And yet, what can be done? You'd think criminal prosecutions would be the obvious next step, but it's not so simple: Libor falls outside the FSA's remit. Yes, there's that £290m fine – though it's worth noting only £60m of that was imposed by the UK, the rest demanded by American authorities. What's more, that £290m is destined not for the public coffers but for the FSA, which will therefore need to levy less from the banks that fund it – including Barclays. So Barclays lose with one hand but are set to gain with the other. Above all, remember that that £290m is about a tenth of the £2.7bn bonus pool Barclays top dogs paid themselves in 2011. It's more than a slap in the wrist, but not much more…
…It's quite a contrast with the severity of punishment meted out to those guilty of more visible crimes, starting with the 1,292 people jailed for their part in last summer's riots, including the man imprisoned for six months for stealing bottles of water worth £3.50. There was no question of the authorities lacking a proper remit then, nor did any rioter have the chance to tell a parliamentary committee it was time we all moved on.”…
In this spirit, I am also delighted that on Thursday 28 June 2012, I had written the following:
“Last year rioters in England, and the petty thieves, have been punished and put behind bars for months and years to come; given criminal records, affecting their lives and well-being for ever. Yesterday, Barclays bank and its boss, Bob Diamond, were caught red-handed, for what seems to be one of the most serious immoral activities ever. However, Bob being such a nice guy said that he and his cronies at the bank will so graciously and generously give up their bonuses for one year! Wow!”…
Read more:
The Barclays scandal is not 'wholly inappropriate'. It's a crime
Whatever Happened to the Moral Compass? Britain engulfed in corruption
Business Ethics, Corporate Social Responsibility and Globalisation for the Common Good
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Last year rioters in England, and the petty thieves, have been punished and put behind bars for months and years to come; given criminal records, affecting their lives and well-being for ever. Yesterday, Barclays bank and its boss, Bob Diamond, were caught red-handed, for what seems to be one of the most serious immoral activities ever. However, Bob being such a nice guy said that he and his cronies at the bank will so graciously and generously give up their bonuses for one year! Wow!
However, so far "he has neither resigned nor been sacked. It may be that a criminal prosecution will follow, but for the moment we are faced with the unpleasant spectacle of corruption and dishonesty at Barclays being brazened out on the grounds that Mr Diamond ‘didn’t know’ what was happening. Too often we find senior mangers shrugging off responsibility when things go wrong, though they are quick enough to claim credit when things go right. What the situation at Barclays has highlighted goes beyond rate-fixing. It touches the very nature of who we are and how we do business and the standards by which we live our professional lives."
I wonder if the rioters had bonuses too and were willing to give them up for a year, would they have been spared their prison sentences. Thus, in this land of ours, when we pride ourselves living in the “Mother of Democracy” it seems there exist two sets of “justices”: one for the petty thieves and one for the good old Bob! Bob, the banker; Bob, the entrepreneur; Bob, the wealth creator! Is this fair, ethical, moral and just? You decide.
Barclays bank: too big to obey the rules
Bob and his mates. Photo: Financial Times
It needs to be uncovered just how far this market-fixing went - this has all the makings of systemic scandal
Editorial, guardian.co.uk, Wednesday 27 June 2012
See also:
Whatever Happened to the Moral Compass? Britain engulfed in corruption