In the wake of the bank rate-rigging scandal, Bob Diamond, Barclays chief executive, announced his resignation from the post with immediate effect, on Tuesday.
The first step to fixing the financial system is to be brutally honest about exactly how widespread and condoned the corruption has been and remains today. The time for politely dancing around the truth is long gone.
Following the systemic fraud of the tech wreck evident in high profile bust-ups like Enron, Tyco, Worldcom et. al, the US tried to bring financial accountability to American corporate executives via the Sarbanes-Oxley Act of 2002 (called the Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and ‘Corporate and Auditing Accountability and Responsibility Act’ (in the House). London, England declined to enact any reciprocal legislation and indeed British politicians openly courted corporate felons, attracting them to London with the promise of lax legislation. Many rats fled America and swarmed to the “business friendly” climate of London where they have been able to operate ever since nearly completely unfettered and unchecked. This is the very reason that London has, over the past few years, become the largest financial center in the world.
We can either admit facts, prosecute those who have committed fraud and criminal acts, sue those who have failed in their duty of care, and rout out the core of this insipid status quo or…we can continue to pretend and extend undue privilege and tax breaks to corrupt franchises and their leaders while continuing to suffer through an endless global economic malaise. The choice is ours to make. Here is a direct link.