“We will do whatever is necessary?”
The objective of these words is probably to calm the worries of all of us with deposits in banks. It is also to be heard as a sign that someone is on the case - appearing to be in action. The reality of the phrase is to signal that there is not a clear idea of what needs to be done at this point in time. Blanket phrases often deliver the opposite message to the one intended. Instead of confidence, it develops worry. Instead of calm it generates genuine concern. It demonstrates that something has to be done, but not sure what. Worse, there is a message of knee jerk responses – reactive not proactive – not thought through – waiting for someone else to take a lead.
But the problem of strategy clouding objective is one reason why the current economic situation has developed. The Banks wanted to grow their profits, the Directors of Banks wanted to see their share prices rise and their own ability to earn bonuses be certain. However, the real objective of a bank is to offer a secure and safe deposit for other people’s money. Allow the bank to use it in a responsible way in return for reasonable interest and security. The covenant between the banks and the community they serve is one of security – it appears they have forgotten this, blinded by greed.
The opportunity for considerable profit from financial instruments developed by mathematical wiz kids proved too much. This is the very old – age old – problem of being deal struck and greed struck. The salesman already spending his bonus before the deal is done. The deal being done for personal gain – never mind implementation and delivery (that’s someone else’s problem). No management control, no focus on critical objectives (security) and a belief that someone will bail me out. No responsibility – no integrity. "I was only following orders."
The objective of these words is probably to calm the worries of all of us with deposits in banks. It is also to be heard as a sign that someone is on the case - appearing to be in action. The reality of the phrase is to signal that there is not a clear idea of what needs to be done at this point in time. Blanket phrases often deliver the opposite message to the one intended. Instead of confidence, it develops worry. Instead of calm it generates genuine concern. It demonstrates that something has to be done, but not sure what. Worse, there is a message of knee jerk responses – reactive not proactive – not thought through – waiting for someone else to take a lead.
But the problem of strategy clouding objective is one reason why the current economic situation has developed. The Banks wanted to grow their profits, the Directors of Banks wanted to see their share prices rise and their own ability to earn bonuses be certain. However, the real objective of a bank is to offer a secure and safe deposit for other people’s money. Allow the bank to use it in a responsible way in return for reasonable interest and security. The covenant between the banks and the community they serve is one of security – it appears they have forgotten this, blinded by greed.
The opportunity for considerable profit from financial instruments developed by mathematical wiz kids proved too much. This is the very old – age old – problem of being deal struck and greed struck. The salesman already spending his bonus before the deal is done. The deal being done for personal gain – never mind implementation and delivery (that’s someone else’s problem). No management control, no focus on critical objectives (security) and a belief that someone will bail me out. No responsibility – no integrity. "I was only following orders."
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