Evelyn de Rothschild on Banking

[sunpearl71]

"Humanisation" - A thoughtful piece from a senior figure from the City of London, focusing on banks and their relationships with their customers of banking.

Some nuggets I liked...
"a banking system in which all sense of personal obligation and duty has vanished. The critical problem with modern banking is that has sought to depersonalise and dehumanise a fundamentally human business."

"Banking is a service industry, and banks should embrace their service role and and deal with the customer on a personalised basis."

"One might ultimately hope that a mix of pride and shame might encourage leading bankers to shepherd their institutions in the right direction."

and the final warning
"One thing is certain, the current approach will not restore stability for long. While we may cross our fingers and hope that crisis can be avoided, we should not forget the roots of the financial systems troubles. Those problems will continue to arise so long as banks and regulators remain convinced that banking is built on profits and losses rather than customers, clients, and a commitment to ethical behaviour."

Full article here.
http://www.huffingtonpost.co.uk/evel...b_5578140.html

[metalman]

Re: Evelyn de Rothschild on Banking

"Humanisation" - A thoughtful piece from a senior figure from the City of London, focusing on banks and their relationships with their customers of banking.

Some nuggets I liked...
"a banking system in which all sense of personal obligation and duty has vanished. The critical problem with modern banking is that has sought to depersonalise and dehumanise a fundamentally human business."

"Banking is a service industry, and banks should embrace their service role and and deal with the customer on a personalised basis."

"One might ultimately hope that a mix of pride and shame might encourage leading bankers to shepherd their institutions in the right direction."

and the final warning
"One thing is certain, the current approach will not restore stability for long. While we may cross our fingers and hope that crisis can be avoided, we should not forget the roots of the financial systems troubles. Those problems will continue to arise so long as banks and regulators remain convinced that banking is built on profits and losses rather than customers, clients, and a commitment to ethical behaviour."

Full article here.
http://www.huffingtonpost.co.uk/evel...b_5578140.html

The average North American, call him Joe, living in the era of Mr. U.S. Economy, walks into a bank to get a loan to fix up his falling apart house, rather than add another thousand square feet to make room for the Made-in-China, Bose branded Home Entertainment center. A dour looking loan officer, call him Ed Noway, sits behind a laminate faux walnut desk facing the nervous applicant. Prominently displayed on the edge of Ed’s desk, a brass nameplate on a wood block that reads “Ed Noway, Loan Officer.” While Joe fidgets, Ed pours over a pile of paperwork that Joe dutifully spent until midnight filling out with his wife the night before. They did not cuddle afterwards. She’s not sure Joe can close the loan with Ed. Joe's not sure he wants the extra hours he’ll have to work to make the additional payments.


Ed finally looks up to grill Joe about his employment and credit history, his assets, his attitude about saving. Ed wants to know if Joe is likely to pay the loan back or not.

He, Ed, the loan officer, is responsible for the decision. He doesn’t want the bank, nor he as its representative, left holding the bag if Joe punts on the loan. Ed will look bad. He might even lose his job. Ed’s ass is on the line. So is Joe’s.


Here we have the basis for a sound business transaction. But those days are over. The Frankenstein Economy is here.

http://www.itulip.com/frankensteineconomy.htm

[goodrich4bk]

Re: Evelyn de Rothschild on Banking

Those problems will continue to arise so long as banks and regulators remain convinced that banking is built on profits and losses rather than customers, clients, and a commitment to ethical behaviour.

No, the problems will continue to arise so long as banks and regulators remain convinced that banking is built for profits but not losses.

There, fixed it.