“The mills of justice grind too late as to make wickedness fearless”

Many centuries ago Plutarch noted: “Thus, I do not see what use there is in those mills of the gods said to grind so late as to render punishment hard to be recognized, and to make wickedness fearless.” This lesson continues today as justice for misbehaviour in banking occurs slowly as highlighted in articles published today.

In the New York Times there was an extensive article on the use of financial engineering to effectively “steal” taxes from primarily European governments. These transactions were supported by many major banks, consultancies, legal firms and accounting firms and led to an estimated loss of $60 billion in tax revenues. Of course some of those funds went to the profits of the banks but also were undoubtedly use to pay substantial bonuses and fees to all involved. These activities are further covered in the Financial Times with yet another bank being in the spotlight of prosecutors.Paragraph

Meanwhile in the US there was a substantial fine assessed against senior bank managers for their role in fostering “a toxic sales culture that foisted unwanted products and sham bank accounts on millions of customers.” This article in the New York Times noted that further fines and other enforcement actions are likely against additional senior managers at the same bank.

The common thread through these stories is an internal culture on focused on making profits with no apparent regard as to whether the activities served any positive society purpose. Is it any wonder that bankers have poor reputations?