This link has been bookmarked by 2 people . It was first bookmarked on 09 May 2008, by tony curzon price.
it should be apparent to all of us that sometimes senior executives, including the chairman, do not fully understand the businesses in which the company is involved.
The financial instruments now causing such turmoil were not properly priced for their inherent risk and managers were unaware of the integral problems with these instruments. Much of this was made possible by the advanced technology used to devise and distribute these instruments.
Investors need to be given a sense of what action is being taken to correct the situation. Financial services and banking should set the very highest standards for ethical behaviour. Ethics is not only a question of acting correctly. It is a matter of not trying to avoid regulation even if one thinks one can get away with it.
This must be taught at a very early stage and demonstrated in the way a firm is managed. I passionately believe that this is something that has deteriorated in the past few years.
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