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在线翻译:
szdaily -> Opinion -> 
It’s all just business
    2012-07-09  08:53    Shenzhen Daily

Jeff Byrne

jeffszdaily@yahoo.com

THERE are plenty of occupations that have always been risky, even life-threatening. Mining and construction spring readily to mind among a host of others, but the finance industry was generally not considered to be one of them.

That all began to change in the 1980s and things progressively declined as big money gradually persuaded governments to dismantle regulation. Until the crash came in 2008, triggering the global financial crisis.

We all thought a lesson had been learned. When it emerged just recently that one of Britain’s biggest and most trusted banks had been caught rigging interbank interest rates, it was clear that nothing had been learned.

CEO Bob Diamond initially refused to resign and Barclays chairman Marcus Agius, a trusted old school banker, fell on his sword. Diamond continued to hold out until he was given a not-so-gentle nudge after Bank of England governor Sir Mervyn King who told Agius that Diamond’s position had become unsustainable. Meanwhile, Diamond stands to walk away with a pay-off of up to 30 million pounds (US$46.47 million) although Barclays was fined US$450 million.

What is interesting is that the investigation of Barclays was instigated by the U.S. Department of Justice that is investigating up to 20 other major banks allegedly involved in collusion to manipulate interest rates to increase profits.

What is also interesting is that Diamond is an American so the question arises: did he import the American culture of greed into Britain’s finance system?

When Diamond appeared before a British parliamentary committee last week to explain what he knew and when, his answers were unconvincing. He did not know until he saw e-mails after the scandal broke. He was also asked whether this would be a good time to hand back his bonuses. Predictably, he said it was not up to him, it was up to the board.

Of course it is, but one hopes the directors will take a cold shower to wake up before deciding to enrich a man whose ethics are questionable to say the least. A former Barclays employee has said Diamond and others at the top must have known, such was the culture at Barclays.

While the finance industry and its supporters resist regulation, it appears that regulation can be circumvented if a corporation has pockets deep enough.

It was also revealed in the past week that Britain’s largest drugmaker was fined US$3 billion for bribing doctors to prescribe adult anti-depressants to children. GlaxoSmithKline admitted to charges in the United States that it operated a scheme to conceal scientific evidence, manipulate articles in medical journals and hand around gifts to sway doctors.

This corporation purposely created a contingency fund to settle what they clearly knew was coming. The executives obviously knew that what they were doing was illegal and made provisions for any penalty. This should sit uncomfortably with the general public.

Yet, no charges of illegality have been laid and there has been no indication that any are coming in the near future.

Something is terribly wrong with a system that allows corporations to bribe their way out of trouble, because that is what this is.

There is no deterrent when perpetrators can buy their way out of serious criminal charges.

(The author is a former Shenzhen Daily senior copy editor and writer.)

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