Tags: Financial | professionals | ethics | standards

Survey: 22 Percent of Financial Professionals Still See Wrongdoing

By    |   Thursday, 21 May 2015 07:00 AM

Six years after the worst financial crisis since the 1930s, the unethical behavior at financial institutions that helped spark the catastrophe must have been cleaned up, right?

Not so fast. A survey of financial service professionals in the United States and United Kingdom, conducted by Labaton Sucharow law firm and the University of Notre Dame, shows that plenty of problems remain.

"With findings pointing to a continued disregard for ethical engagement and alarming new tactics to silence potential whistleblowers, the industry appears to be faltering in its reform efforts," the survey states.

Of the 1,223 U.S. and U.K. financial services account executives surveyed, almost 20 percent think they must engage in illegal or unethical activity to succeed. In addition, 32 percent believe compensation structures pressure employees to compromise ethical standards or violate the law.

A total of 27 percent of the respondents don't think the industry puts clients' interests first, and "an astonishing" 22 percent of respondents say they have observed or have first-hand knowledge of actual wrongdoing in the workplace.

Elsewhere along the front of troubling news, hedge fund legend George Soros is concerned that the bevy of conflicts percolating around the world could end in catastrophe — another world war. And China might prove to be the flashpoint, the chairman of Soros Fund Management said at the Bretton Woods Committee Annual Meeting at the World Bank, MarketWatch reports.

If the Asian titan fails in its attempt to shift the economy's focus to domestic demand from exports, Soros sees a "likelihood" that Chinese leaders will resort to foreign conflict to keep themselves in power and prevent the country from falling apart.

And if China chooses the wrong adversary, look out. "If there is conflict between China and a military ally of the United States, like Japan, then it is not an exaggeration to say that we are on the threshold of a third world war," Soros said.

The solution: the United States should let China's yuan join the International Monetary Fund's basket of currencies, Soros said. And China, in turn, should reform its economy, including acceptance of the rule of law.

Without such an agreement, "there is a real danger that China will align itself with Russia politically and militarily, and then the threat of third world war becomes real, so it is worth trying."

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Six years after the worst financial crisis since the 1930s, the unethical behavior at financial institutions that helped spark the catastrophe must have been cleaned up, right?
Financial, professionals, ethics, standards
385
2015-00-21
Thursday, 21 May 2015 07:00 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved