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Back to business as usual? Let’s hope not!
By Lauren | May 20, 2009
The media were all abuzz recently over the news that the big banks are scrambling to pay back the TARP money they fought so desperately to get just a few months ago. The reason? Apparently banks think that the restrictions on executive compensation that come with TARP funds unreasonably limit their ability to hire the “best and brightest” executives. Seems it takes hefty salaries and handsome bonuses to recruit talent in the financial services industry these days.
In all fairness, they may have a point. With the economy tumbling, new regulations looming on the horizon and the whole industry reeling under the weight of public fury, working in financial services industry isn’t exactly a cakewalk these days. The work may be difficult and thankless enough that it’ll take extra money to recruit the people who can turn things around.
Still, I hope the sudden rush to return TARP funds isn’t a sign that the financial services industry expects to return to its pre-crash, entitlement culture. Yes, there will be regulatory changes - the Administration has promised them and Congress appears ready to support some significant reforms. (Just the speed with which the credit card legislation is blasting through Congress says volumes.) But new regulations alone probably won’t be enough to create lasting change. It’s time the financial services industry took a long, critical look at its culture, values and sense of privilege. A little humility might go a long way toward preventing future disasters, and would certainly send a more appealing message to the industry’s customers.
Topics: Business Ethics, corporate responsibility, customer relations, ethics |