Unchecked by strong regulation and government, ignorance and greed can become widespread while questionable and opaque accounting rules obfuscate the quality of reporting and auditors miss key issues, warns Emile Woolf FCA
In last month’s column I commented on the huge fines levied on financial institutions guilty of violating securities laws. It is seems clear that natural justice would be better served if these vast penalties were applied to compensate victims, rather than enriching culprits’ lawyers, while leaving the transgressors’ obscene levels of remuneration and bonuses intact.
These observations have been lent particular emphasis by the head of Deutsche Bank, John Cryan, who clearly has little patience with a bonus culture divorced from corporate performance. He recently warned his top bankers that their anticipated year-end bonuses will instead be applied to ease the bank’s fine for mis-selling sub-prime mortgages, which could be as high as £11bn.
