THE TELEGRAPH: Gillian Tett, the FT whizz whose book Fool’s Gold is the best explanation so far of the financial crisis, has a fascinating piece today which considers why we have not seen some of the bankers responsible for the mess put behind bars. She points out that in the wake of the Savings & Loan scandal in the US, 1,852 S&L officials were prosecuted and 1,072 of them served time. A further 2,558 bankers were also sent to prison.
So far there is no sign of a campaign of retributive justice on the same scale to deal with those who led the system to collapse. Is that a good thing? Locking up the casino boys may satisfy public hunger for revenge, but it does nothing to repair global finance.
Gillian Tett argues: “But if there is no retribution against financiers, it will be difficult to force a real change in behaviour. After all, no amount of twiddling with Basel rules or pious statements about bonuses will ever scare a financier as much as the thought of jail. Moreover, without some retribution it will also be hard to persuade voters that finance is really being reformed, or has any credibility or moral authority. That is bad for politicians and regulators. However, it is also bad for bankers too.” She reckons we should keep an eye out for signs of legal cases against bankers. And presumably prison sentences too? [Source: The Telegraph] Comment here | Benedict Brogan | Friday, September 04, 2009
