IMF chief says banks haven't changed since financial crisis

[Starry Messenger]

*Big surprise*

http://www.theguardian.com/business/2014/may/27/imf-chief-lagarde-bankers-ethics-risks

The head of the International Monetary Fund has warned that a persistent violation of ethics among bankers and rising inequality pose a major threat to growth and financial stability.

Christine Lagarde told an audience in London that six years on from the deep financial crisis that engulfed the global economy, banks were resisting reform and still too focused on excessive risk taking to secure their bonuses at the expense of public trust.

She said: "The behaviour of the financial sector has not changed fundamentally in a number of dimensions since the crisis. While some changes in behaviour are taking place, these are not deep or broad enough. The industry still prizes short-term profit over long-term prudence, today's bonus over tomorrow's relationship.

"Some prominent firms have even been mired in scandals that violate the most basic ethical norms - Libor and foreign exchange rigging, money laundering, illegal foreclosure."

Lagarde warned the too-big-to-fail problem among some of the world's largest financial institutions was still unresolved and remained a major source of systematic risk, with implicit subsidies of $70bn (£42bn) in the US, and up to $300bn in the eurozone.

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Bonus: irony alert

[FiveGoodMen]

1. Why would they?

It worked out great for them.

[villager]

3. Exactly. Plus their errand-runners are installed in the White House and Congress

so it's not as if there's any counterweight forcing any, er, "change"

[yallerdawg]

2. Irony

The iMF functions as an arm of these same banks and their fundamental conservatism regarding the government sector.

For decades the IMF will help countries in need, by gutting public sector and privatizing utilities and services -- gut-wrenching capitalism pays you back (and incentivizes the local political class that serves the local oligarchs).

So, Ms. Lagarde talks the talk...