Those long-forgotten Chinese Walls

The casual way in which these Barclays traders rigged the market is clearly the tip of the iceberg. Corruption and a disregard for the client is obviously endemic in financial services.

The root of these problems lies in the 1980s deregulation of the City.  The merger of commercial and investment banks is only one of the mistakes made then; as damaging was the merger of stockbrokers with investment banks. Chinese walls are not just porous, they’ve been torn down; but for the leakage to be effective, the information  has to be contained within the mothership.

We need lots of separate institutions, partnerships rather than plcs, for each speciality, so none is too big to fail, and each will be required to be totally transparent in their dealings.

Advertisements

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: