Saturday, July 18, 2009

Curbing the excesses of those who run the banks

Robert Peston a href="" writes about the review of bank's governance structures /a. The aim is to find out what went wrong and see if changes in the way private banks are run can stop them repeating their /br /The key points seem to me that a lot of bank executives did not fully know or understand what their bank was doing. In addition, the remuneration structure encouraged people to take excessive risks. And, furthermore, non-exec directors were not doing their job properly. They should have been supervising the board and giving an independent view. They failed to do so. Some proposed reforms are outlined - such as the establishment of risk committees and more work/knowledge/participation on the part of non-execs [who seem to be ridiculously part-time at the moment].br /br /Let's hope that the remaining private banks [and those with a UKFI minority stake] take this on board in the way they organise themselves.div class="blogger-post-footer"img width='1' height='1' src=''//div

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