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SlideShare utilise les cookies pour améliorer les fonctionnalités et les performances, et également pour vous montrer des publicités pertinentes. Si vous continuez à naviguer sur ce site, vous acceptez l’utilisation de cookies. Consultez notre Politique de confidentialité et nos Conditions d’utilisation pour en savoir plus.
Over the last fifteen years, America's biggest banks have amassed a record of exploiting their customers in order to boost the bottom line. This presentation walks viewers through why and how this was allowed to occur.
The most notable of which
was the insider trading ring that ensnared junk- bond pioneer Michael Milken and led to the downfall of Drexel Burnham Lambert, the 55-year-old investment bank that employed him.
But the scandals during this
period were different from those of the past because we didn’t see retail banks exploiting their own customers to the degree that, say, National City Bank did in the 1920s.
And the current heir apparent
at Bank of America, Tom Montag, once ran the trading operations at Goldman Sachs -- which, it’s worth pointing out, is itself now run by a former trader as opposed to an investment banker.
As traders gained power, in
turn, they paved the way for the take-no- prisoners ethos associated with trading to contaminate their institutions’ retail banking operations.
“We do not need [banks]
doing this vast array of activities with this miasma of super profits and a lot of gross immorality in terms of the way that they deal with the customers. The derivative traders have tended to rook their own customers. That's not a pretty sight. It's a dirty business.”
In other words, the reason
the nation’s biggest banks have once again gotten comfortable exploiting their customers is because their executives have adopted a trading mindset.
This isn’t to say that
Glass-Steagall should necessarily be reinstituted in its entirety, as many of its provisions were indeed outdated.
It is to say, however,
that as long as we allow the nation’s biggest retail banks to run high-risk trading operations, then their millions of customers should expect to be treated as counterparties as opposed to clients.
While banks do bad things,
that doesn’t mean they always make bad investments. To discover one way to profit from a massive trend in the bank industry, click here to download a free report from The Motley Fool.