Financial planning’s first scalp
I recently wrote about the Commonwealth Bank financial planning scandal in a post “Its your money – isn’t it? Commonwealth bank scandal.” It seems now that the scandal has claimed it’s first executive scalp. His tenure took place while the worst financial planning scandal was taking place. This included overseeing financial planners who were placing clients money in inappropriate investments without their knowledge and often forging their signatures on documents.
“Don’t sack me, let me resign.”
The executive was in charge whilst three “dodgy” financial planners were allowed to escape investigation. All were allowed to resign and leave the bank, rather than be sacked. One went on to two further jobs in the financial sector even though he was eventually investigated and expelled from the Financial Planning Association
Billions of savings.
These are men and women in some of the highest paid jobs in Australia and have in their charge billions, yes billions, of people’s hard earned retirement money. Either they have a very arrogant attitude towards their clients or they are not as smart as we think.
Global Financial Crisis
The Commonwealth Bank is not the only institution to get away with a scandal with very little consequences. After the Global Financial Crisis there were many articles written by journalists in America about the lack of sanctions against financial institutions during the crisis. After the collapse of Lehmann Bros Bank and the subsequent ripple effects this caused, even governments were in financial trouble. Ireland and Iceland were two choice examples of how to wreck an economy by investing in “dodgy investments” pushed by banks such as Lehmann Bros. As yet, I don’t think there has been one conviction for fraud, from any of the financial institutions in America. Bernie Madoff was jailed for the rest of his natural life for fraud but his ponzi scheme started in the 1960’s and it took 40 years for the financial regulators to catch up with a very gifted and smart liar.
Isn’t Capitalism a fantastic institution.
I hate to be negative but just think about what I’ve written above. All these people have been able to escape conviction (except for Bernie Madoff) because of a money system Western societies think is above reproach.
Do it yourself
I keep saying this but the article above is a reinforcement of the fact that nobody should love you or your money as much as you do! Unfortunately we have to work within the same framework as the institutions I’ve mentioned above but hopefully we can do it in a way that improves our financial position and doesn’t adversely affect anyone else. Free advice is only as far away as this and other blogs and you only need the will to succeed to become a great financial story.
Do it yourself – do it well – It’s Your Savings !!