Posted 10 years ago on Jan. 5, 2012, 1:13 p.m. EST by qwerty55
This content is user submitted and not an official statement
Banks and financial institutions continue to be fined for bad behavior BUT arguably for them its a Business expense and factored in to their costs. There is therefore no incentive to behave IF the gain is more than the fine.
Punishment will need to be more severe if good/fair practice is to be the norm.
What I have wondered about is WHY licenses to operate (licenses to print money?) are not suspended or canceled when SOME of these Institutions break the law. Surely this would remove the "incentive " to be bad and restrict improper/illegal practices?
The practicalities of closing down the Institution and/or transferring existing business to other parties IS manageable so it is doable. The stockholders who would be affected made the choice to elect a Board who were willing to flout the rules and therefore take their chances with the propriety or lack of it of the management.
Good practice will never be adopted (by the usual suspects..many banks are in fact well managed and fair) UNTIL they are faced with losing their licenses to operate in the event they flagrantly or recklessly break the rules.
I therefore put forward that 1 one of the objectives of OWS be a campaign to suspend and/or remove licenses to operate of financial institutions who repeatedly or callously break the rules(leading to losses to its customers) 2 For discussion in the forum Q :)