November 1, 2013

Why Bankers Still Aren't Chastened

from Der Spiegel:

Bankers have gone from being global elites to universally despised villains. Recent headlines suggest authorities are finally cracking down on illicit practices -- but the truth is very different.

The I Portici Hotel, an art nouveau palace in the historic center of Bologna, promises guests "a new experience, full of discovery and charm, involving all five senses." But Raoul Weil, once one of the most influential executives at Swiss bank UBS, recently had a less-than-charming stay.

At 1:45 on the morning of Oct. 19, Italian police arrested the 53-year-old in the hotel and brought him to the far less luxurious Dozza prison. The reason: US authorities had indicted Weil, the former head of wealth management at UBS, for allegedly helping American clients hide their assets from US tax authorities on Swiss bank accounts.

Weil's arrest was only one of a series of reminders last week that bankers around the globe are no longer the admired elite of the business world. Public prosecutors, financial regulators and politicians everywhere now suddenly seem to be striving to condemn all of the industry's excesses in fast forward.

.....(snip).....

Just a Slap on the Wrist

The truth is, spectacular coups like Weil's arrest are little more than symbolic gestures. The fines and settlements paid by many financial institutions are akin to the indulgences sold by the medieval Catholic Church. The sins of the past may now be forgiven -- but there are no guarantees of improvement in the future. ..................(more)

The complete piece is at: http://www.spiegel.de/international/europe/why-recent-arrests-of-bankers-are-merely-publicity-coups-a-930356.html