Banking INDUSTRY myopia PREVENTS THE CREATION OF EFFECTIVE INTERNAL ANTI-FRAUD CONTROLS
January 1st, 2009
BY ANDY HOLDER
Bankers mesmerised by the earnings potential of a transaction have often fallen into the trap of developing a kind of myopia that stops them looking at the 'big picture' with disastrous consequences. This kind of risk blindness seems to prevent them from following laid down internal controls and even willfully compromising them in the pursuit of profit, often to the detriment of others that get caught up in the scheme. The consequences are evident from the cases of Nick Leeson at Barings and Jerome Kerveil at Societe Generale. Here, Art Lloyd ...
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