In today’s Financial Times – there is an analysis on page 7, titled “Of greed and creed” – and talks about that more bankers are questioning the ethics of their work.

Among the most questionable actions were the toxic investments that were passed on to investors and millions and millions were made by “packaging” and “bundling” these transactions. The steps before and after such shams led to the eventual collapse of the world economy which has yet to recover.

Now on the cusp of 2010 – so many workers find themselves without a job and without any prospects for a job. The US with its real unemployment rate (including the people who have given up looking and those who have taken part-time/freelance opportunities to pay atleast some of the bills) is at 17%+

An interesting point made in the FT article was that “banking has always attracted moral controversy” this is because the basis of modern-day finance is lending at interest – where the lender really doesn’t have any interest in whether you prosper or not, they will get their money as was evident when so many homeowners could not pay their mortgages and the taxpayers came to the rescue. Its about time to develop a more ethical banking system – one based on profit sharing (read: shared interests).

A silver lining from all this is a quote that is highlighted in the article: “Most people want to do a good job. There is an increased desire to look at the ethics of what they do.”

This is very important and can be the foundation stone from which we build better banks, better corporations and better institutions. For that to happen we need to be fair with all – have a system that is based on merit and intertwines the interests of all rather than stacking the cards all on one side.

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