AAII Investor Update: Financial Foul Play
The financial sector sure seems to be ignoring the memo about the need to rebuild the public’s trust. Just look at the following headlines, all of which have been written since summer started on June 20, 2012:
“LIBOR Manipulation? Done for You, Big Boy,” Financial Times Alphaville Blog, June 27
“MF Global Redux as Regulator Says PFGBest Client Funds Missing,” Reuters, July 10
“Error by Knight Capital Rips Through Stock Market,” Reuters, August 1
“UK bank Accused of Iran Money Laundering Scheme,” The Wall Street Journal, August 6
Each of these events was a separate, unrelated incident. Three are the actions of a small number of rogue professionals, though the scope of the LIBOR scandal is not fully known. The impact on the financial sector’s reputation, however, is far larger. The headlines imply the financial sector has yet to embrace its fiduciary duty to shareholders or show a commitment to rebuilding the public’s trust. I’m angry, as likely are many of the other honest professionals who work in finance.