Saturday, March 21, 2009

Law enforcement for a change

Great piece by Stanley Bing. If we step back it's quite sad and probably yet another indication of the need for some radical changes in the financial system with a view to restoring the logical order of things, which is that finance should serve the economy, not lead it.

For the past fifteen years I've been in contact with friends and B-school alumni working for finance departments in quoted companies who had a mission every end of quarter: make sure their company's figures reached or exceeded the expectations of analysts working for major investment banks and brokers... So at least once a quarter their mission had nothing to do with their company's core business and everything to do with window dressing, to call thing the way they are. And of course poor implementation of standing legislation as well as bringing poor new legislative measures into force (read Sarbanes-Oxley) did nothing to improve things... which is why I wanted to share this video.

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