3 Responses to “The crazy world of the superstar”

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1. this problem has been around for ages - in economics it is called the agent problem: people are effectively paid to act in interests very different to the owners of the business. it happens every day, just not on a grand scale. until society changes its value system this will continue

   Posted by: eric savage | January 31st, 2008 at 12:34 pm | Report this comment
   

2. There is a reason why someone holding a supervisory position earns even more than the rainmakers–the duty to both always know what the underlings are up to and to a large extent know how to do it himself, too.

   When the powers-that-be are either incompetent or unaware/indifferent–content with knowing that money is coming in–that is when banking becomes nothing more than a car dealership. And considering the sums involved, disaster is but a matter of time and magnitude.

   Co-existing negligence in two parties does not make a conspiracy–in the absence of which Mr Kerviel’s responsibility for exceeding his authority and its consequences is undiminished by his supervisors’ responsibility for their own incompetence and/or negligence. Each one is guilty of breach of trust.

   The bank’s shareholders are right in filing charges against the two parties, albeit separately. Those in other hitherto-spared banks are duty-bound to check if their middle-managers are doing their jobs.

   Posted by: J Michael, private banker, 39 | February 1st, 2008 at 5:09 am | Report this comment
   

3. While as much avuncular as uncompromising towards the market stars under my wing, I would be the last one to make excuses for the likes of Messrs Kerviel, Leeson, Hamanaka, Rusnak and Young.

   Nonetheless, I found the comparison needlessly cruel–a rogue trader deserves handcuffs, but an anti-depressant-condemning spiritual-powers-flaunting couch-jumper needs to be taken away in a straitjacket.

   Posted by: J Michael, private banker, 39 | February 1st, 2008 at 5:23 am | Report this comment
   

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