what do you think of bankers it’s a rhetorical question do you know any are
rhetorical question do you know any are
rhetorical question do you know any are you one I do you think that they cheat
you one I do you think that they cheat
you one I do you think that they cheat and if they cheat
and if they cheat
and if they cheat is that because banking attracts cheats
is that because banking attracts cheats
is that because banking attracts cheats or it creates them well a few years ago
or it creates them well a few years ago
or it creates them well a few years ago a team of behavioural economists from
a team of behavioural economists from
a team of behavioural economists from Switzerland set out to answer that very
Switzerland set out to answer that very
Switzerland set out to answer that very question they gathered together a
question they gathered together a
question they gathered together a hundred and twenty eight bankers and
hundred and twenty eight bankers and
hundred and twenty eight bankers and split them into two groups 64 in each
split them into two groups 64 in each
split them into two groups 64 in each they then asked primed the first group
they then asked primed the first group
they then asked primed the first group with questions about their personal
with questions about their personal
with questions about their personal lives their families their hobbies that
lives their families their hobbies that
lives their families their hobbies that they loved or did they hate reality
they loved or did they hate reality
they loved or did they hate reality television
television
television the second group they primed them with
the second group they primed them with
the second group they primed them with questions about their work their roles
questions about their work their roles
questions about their work their roles and responsibilities at the bank they
and responsibilities at the bank they
and responsibilities at the bank they then asked everyone in both groups to
then asked everyone in both groups to
then asked everyone in both groups to toss a coin 10 times and to record the
toss a coin 10 times and to record the
toss a coin 10 times and to record the results but they added this important
results but they added this important
results but they added this important rider you will get 20 dollars for every
rider you will get 20 dollars for every
rider you will get 20 dollars for every head that you record you get nothing for
head that you record you get nothing for
head that you record you get nothing for any tails so what did they find well you
any tails so what did they find well you
any tails so what did they find well you would expect if it was pure chance and
would expect if it was pure chance and
would expect if it was pure chance and there was no cheating that there would
there was no cheating that there would
there was no cheating that there would be pretty even numbers of heads and
be pretty even numbers of heads and
be pretty even numbers of heads and tails and indeed with the first group
tails and indeed with the first group
tails and indeed with the first group that’s what they found 640 tosses almost
that’s what they found 640 tosses almost
that’s what they found 640 tosses almost even heads and tails but with the second
even heads and tails but with the second
even heads and tails but with the second group the results were quite different
group the results were quite different
group the results were quite different many more heads than tails now this this
many more heads than tails now this this
many more heads than tails now this this is a statistically significant deviation
is a statistically significant deviation
is a statistically significant deviation from pure chance and it led the
from pure chance and it led the
from pure chance and it led the researchers to the conclusion that
researchers to the conclusion that
researchers to the conclusion that bankers thinking banking thoughts are
bankers thinking banking thoughts are
bankers thinking banking thoughts are more willing to cheat dishonesty in
more willing to cheat dishonesty in
more willing to cheat dishonesty in banking and finance is a breach of trust
banking and finance is a breach of trust
banking and finance is a breach of trust it’s a breach of our trust in banks that
it’s a breach of our trust in banks that
it’s a breach of our trust in banks that they’re honest and ethical and that the
they’re honest and ethical and that the
they’re honest and ethical and that the financial system as a whole is fair a
financial system as a whole is fair a
financial system as a whole is fair a force for good and not evil and indeed
force for good and not evil and indeed
force for good and not evil and indeed it was this good not evil thing that got
it was this good not evil thing that got
it was this good not evil thing that got me a human rights law professor
me a human rights law professor
me a human rights law professor interested in global finance in the
interested in global finance in the
interested in global finance in the first place more than 10 years ago I
first place more than 10 years ago I
first place more than 10 years ago I wanted to better understand how finance
wanted to better understand how finance
wanted to better understand how finance operates and what sort of impact it has
operates and what sort of impact it has
operates and what sort of impact it has on
on
on human rights and it’s been a daunting
human rights and it’s been a daunting
human rights and it’s been a daunting challenge not just because so few people
challenge not just because so few people
challenge not just because so few people outside finance really understand how
outside finance really understand how
outside finance really understand how the system works but because so many
the system works but because so many
the system works but because so many people inside finance struggle to
people inside finance struggle to
people inside finance struggle to explain what it is that they do bankers
explain what it is that they do bankers
explain what it is that they do bankers will point to sophisticated mathematical
will point to sophisticated mathematical
will point to sophisticated mathematical models for predicting the financial
models for predicting the financial
models for predicting the financial future but ultimately none of those
future but ultimately none of those
future but ultimately none of those models can handle the sheer
models can handle the sheer
models can handle the sheer unpredictability of what we human beings
unpredictability of what we human beings
unpredictability of what we human beings do with our money the biggest challenge
do with our money the biggest challenge
do with our money the biggest challenge of all though is to try and harness the
of all though is to try and harness the
of all though is to try and harness the immense power of finance to do more that
immense power of finance to do more that
immense power of finance to do more that helps human rights rather than harms
helps human rights rather than harms
helps human rights rather than harms them and to help them more like this
them and to help them more like this
them and to help them more like this finance has helped to create the wealth
finance has helped to create the wealth
finance has helped to create the wealth that has fueled this spectacular drop in
that has fueled this spectacular drop in
that has fueled this spectacular drop in global poverty from a position in 1990
global poverty from a position in 1990
global poverty from a position in 1990 when nearly 40% of the world’s
when nearly 40% of the world’s
when nearly 40% of the world’s population lived in abject poverty – a
population lived in abject poverty – a
population lived in abject poverty – a position today where it’s less than 10%
position today where it’s less than 10%
position today where it’s less than 10% now that 10% still represents more than
now that 10% still represents more than
now that 10% still represents more than 700 million people living on less than
700 million people living on less than
700 million people living on less than one point nine dollars a day but at
one point nine dollars a day but at
one point nine dollars a day but at least we are moving in the right
least we are moving in the right
least we are moving in the right direction where finance has pushed us in
direction where finance has pushed us in
direction where finance has pushed us in the wrong direction is in the matter of
the wrong direction is in the matter of
the wrong direction is in the matter of distribution of wealth the world today
distribution of wealth the world today
distribution of wealth the world today is richer than it has ever been before
is richer than it has ever been before
is richer than it has ever been before and yet so much of that wealth is
and yet so much of that wealth is
and yet so much of that wealth is concentrated in the hands of so few the
concentrated in the hands of so few the
concentrated in the hands of so few the richest 1% of the world’s population now
richest 1% of the world’s population now
richest 1% of the world’s population now possess more wealth than the other 99%
possess more wealth than the other 99%
possess more wealth than the other 99% so while it is true that the financial
so while it is true that the financial
so while it is true that the financial system has helped the poor a little it’s
system has helped the poor a little it’s
system has helped the poor a little it’s helped the rich a whole lot more
helped the rich a whole lot more
helped the rich a whole lot more economists call this the trickle-down
economists call this the trickle-down
economists call this the trickle-down effect but there you go that’s it it’s a
effect but there you go that’s it it’s a
effect but there you go that’s it it’s a trickle and it’s no accident the
trickle and it’s no accident the
trickle and it’s no accident the financial system is designed this way
financial system is designed this way
financial system is designed this way there’s a revolving door between finance
there’s a revolving door between finance
there’s a revolving door between finance and our lawmakers Wall Street today
and our lawmakers Wall Street today
and our lawmakers Wall Street today occupies government’s and has persuaded
occupies government’s and has persuaded
occupies government’s and has persuaded our leaders to believe that what is good
our leaders to believe that what is good
our leaders to believe that what is good for finance good for the wealthy is good
for finance good for the wealthy is good
for finance good for the wealthy is good for the rest of the economy banks big
for the rest of the economy banks big
for the rest of the economy banks big banks in particular have become a sort
banks in particular have become a sort
banks in particular have become a sort of protected species
of protected species
of protected species they’re encouraged to take enormous
they’re encouraged to take enormous
they’re encouraged to take enormous risks and if those risks pay off they
risks and if those risks pay off they
risks and if those risks pay off they get to keep the profits but if they go
get to keep the profits but if they go
get to keep the profits but if they go horribly wrong the state steps in and
horribly wrong the state steps in and
horribly wrong the state steps in and bails the might it’s a bit like having a
bails the might it’s a bit like having a
bails the might it’s a bit like having a cat as a pet you think you owners are in
cat as a pet you think you owners are in
cat as a pet you think you owners are in reality it owns you tax laws are a vivid
reality it owns you tax laws are a vivid
reality it owns you tax laws are a vivid example of a rigged financial system why
example of a rigged financial system why
example of a rigged financial system why do you think it is that multinational
do you think it is that multinational
do you think it is that multinational corporations are able so successfully to
corporations are able so successfully to
corporations are able so successfully to avoid paying tax by shifting their
avoid paying tax by shifting their
avoid paying tax by shifting their profits and losses across the globe well
profits and losses across the globe well
profits and losses across the globe well they can because it’s legal
they can because it’s legal
they can because it’s legal it may be unethical it may be unfair but
it may be unethical it may be unfair but
it may be unethical it may be unfair but it is not illegal in fact the reason why
it is not illegal in fact the reason why
it is not illegal in fact the reason why our tax laws are so incredibly long is
our tax laws are so incredibly long is
our tax laws are so incredibly long is because they contain so many complicated
because they contain so many complicated
because they contain so many complicated tax deductions for those rich enough to
tax deductions for those rich enough to
tax deductions for those rich enough to be able to claim them the United States
be able to claim them the United States
be able to claim them the United States tax code is four million words long
tax code is four million words long
tax code is four million words long that’s seven times the length of
that’s seven times the length of
that’s seven times the length of Tolstoy’s war and peace or four times
Tolstoy’s war and peace or four times
Tolstoy’s war and peace or four times the length of all the Harry Potter
the length of all the Harry Potter
the length of all the Harry Potter novels put together but whatever it’s an
novels put together but whatever it’s an
novels put together but whatever it’s an awful lot of tax breaks warren buffett
awful lot of tax breaks warren buffett
awful lot of tax breaks warren buffett tells this story of asking everyone in
tells this story of asking everyone in
tells this story of asking everyone in his office to note down their annual
his office to note down their annual
his office to note down their annual income tax rate so this is secretaries
income tax rate so this is secretaries
income tax rate so this is secretaries janitors middle management and Buffett
janitors middle management and Buffett
janitors middle management and Buffett himself and when the results come back
himself and when the results come back
himself and when the results come back it is Warren Buffett the world’s second
it is Warren Buffett the world’s second
it is Warren Buffett the world’s second richest human being that is paying the
richest human being that is paying the
richest human being that is paying the lowest income tax rate by far so the
lowest income tax rate by far so the
lowest income tax rate by far so the financial fat cats have got their cream
financial fat cats have got their cream
financial fat cats have got their cream and we’ve let them have it indeed are we
and we’ve let them have it indeed are we
and we’ve let them have it indeed are we complicit in this crime
complicit in this crime
complicit in this crime so seduced have we become by finance and
so seduced have we become by finance and
so seduced have we become by finance and money
money
money we’ve reached we’ve reached a position
we’ve reached we’ve reached a position
we’ve reached we’ve reached a position today where we live our lives like Oscar
today where we live our lives like Oscar
today where we live our lives like Oscar Wilde’s definition of a cynic we know
Wilde’s definition of a cynic we know
Wilde’s definition of a cynic we know the price of everything in the value of
the price of everything in the value of
the price of everything in the value of nothing an Adid everything does seem to
nothing an Adid everything does seem to
nothing an Adid everything does seem to have a price tag these days we will sell
have a price tag these days we will sell
have a price tag these days we will sell our spare rooms to strangers for a night
our spare rooms to strangers for a night
our spare rooms to strangers for a night we’ve turned our private cars into
we’ve turned our private cars into
we’ve turned our private cars into public taxis some people sell their
public taxis some people sell their
public taxis some people sell their kidneys and other people sell their
kidneys and other people sell their
kidneys and other people sell their children and then there’s this guy in
children and then there’s this guy in
children and then there’s this guy in the you now
the you now
the you now States who sold his forehead for
States who sold his forehead for
States who sold his forehead for advertising space for a month for thirty
advertising space for a month for thirty
advertising space for a month for thirty seven thousand three hundred and seventy
seven thousand three hundred and seventy
seven thousand three hundred and seventy five dollars most of all we’ve allowed
five dollars most of all we’ve allowed
five dollars most of all we’ve allowed money to become the measure of all that
money to become the measure of all that
money to become the measure of all that we achieve in life and it may be that
we achieve in life and it may be that
we achieve in life and it may be that the rich are particularly clever or
the rich are particularly clever or
the rich are particularly clever or they’re very greedy or they’re just very
they’re very greedy or they’re just very
they’re very greedy or they’re just very lucky
lucky
lucky but whatever we venerate them as symbols
but whatever we venerate them as symbols
but whatever we venerate them as symbols of success in our society and then our
of success in our society and then our
of success in our society and then our eagerness to emulate them we binge on
eagerness to emulate them we binge on
eagerness to emulate them we binge on debt and thereby we’ve allowed banks to
debt and thereby we’ve allowed banks to
debt and thereby we’ve allowed banks to effectively control our lives so we’ve
effectively control our lives so we’ve
effectively control our lives so we’ve created a monster and just like dr.
created a monster and just like dr.
created a monster and just like dr. Frankenstein we’ve come to regret the
Frankenstein we’ve come to regret the
Frankenstein we’ve come to regret the creation our levels of distrust of banks
creation our levels of distrust of banks
creation our levels of distrust of banks have reached epic proportions in a
have reached epic proportions in a
have reached epic proportions in a recent global survey barely fifty
recent global survey barely fifty
recent global survey barely fifty percent of us believed that banks were
percent of us believed that banks were
percent of us believed that banks were trustworthy institutions when we
trustworthy institutions when we
trustworthy institutions when we describe banks we use words like
describe banks we use words like
describe banks we use words like unethical arrogant socially useless and
unethical arrogant socially useless and
unethical arrogant socially useless and my personal favorite a giant vampire
my personal favorite a giant vampire
my personal favorite a giant vampire squid wrapped around the face of
squid wrapped around the face of
squid wrapped around the face of humanity our views of banks and bankers
humanity our views of banks and bankers
humanity our views of banks and bankers have become so jaundiced that we now
have become so jaundiced that we now
have become so jaundiced that we now expect bankers to cheat now this is not
expect bankers to cheat now this is not
expect bankers to cheat now this is not how it should be banking should be a
how it should be banking should be a
how it should be banking should be a pillar of society not some sort of
pillar of society not some sort of
pillar of society not some sort of sheltered workshop for bankers so we’ve
sheltered workshop for bankers so we’ve
sheltered workshop for bankers so we’ve got to reclaim finance for the sake of
got to reclaim finance for the sake of
got to reclaim finance for the sake of society and for the sake of bankers
society and for the sake of bankers
society and for the sake of bankers we’ve got to rewrite the mission
we’ve got to rewrite the mission
we’ve got to rewrite the mission statement of Finance so that social
statement of Finance so that social
statement of Finance so that social responsibility is not seen as some sort
responsibility is not seen as some sort
responsibility is not seen as some sort of optional extra but it’s part of the
of optional extra but it’s part of the
of optional extra but it’s part of the core business of banking and that
core business of banking and that
core business of banking and that bankers are made to take responsibility
bankers are made to take responsibility
bankers are made to take responsibility for the wider consequences of their
for the wider consequences of their
for the wider consequences of their action rather than be excused them as
action rather than be excused them as
action rather than be excused them as they are today
they are today
they are today the banks can do this because bankers
the banks can do this because bankers
the banks can do this because bankers are men and women just like you and me
are men and women just like you and me
are men and women just like you and me they have passions and desires and they
they have passions and desires and they
they have passions and desires and they need to be respected like everyone else
need to be respected like everyone else
need to be respected like everyone else I remember this one executive top
I remember this one executive top
I remember this one executive top executive banker telling me that when he
executive banker telling me that when he
executive banker telling me that when he looks at himself in the mirror in the
looks at himself in the mirror in the
looks at himself in the mirror in the morning he wants to be proud of what it
morning he wants to be proud of what it
morning he wants to be proud of what it is that he does that day
is that he does that day
is that he does that day we can work with this we could appeal to
we can work with this we could appeal to
we can work with this we could appeal to the better angel with in banking and
the better angel with in banking and
the better angel with in banking and there is one for I’ve seen over the
there is one for I’ve seen over the
there is one for I’ve seen over the years how access to financial services
years how access to financial services
years how access to financial services has fueled that dramatic decline in
has fueled that dramatic decline in
has fueled that dramatic decline in poverty that we saw earlier how in the
poverty that we saw earlier how in the
poverty that we saw earlier how in the poor remittances this is money sent back
poor remittances this is money sent back
poor remittances this is money sent back by family members working overseas have
by family members working overseas have
by family members working overseas have been lifelines for those back home how
been lifelines for those back home how
been lifelines for those back home how in the Pacific Islands micro financing
in the Pacific Islands micro financing
in the Pacific Islands micro financing programs have helped to unlock the
programs have helped to unlock the
programs have helped to unlock the wealth creating potential of the poor
wealth creating potential of the poor
wealth creating potential of the poor and particularly of women and how in
and particularly of women and how in
and particularly of women and how in Myanmar Indonesia and even China a small
Myanmar Indonesia and even China a small
Myanmar Indonesia and even China a small but growing band of ethical investors
but growing band of ethical investors
but growing band of ethical investors are trying to better protect the
are trying to better protect the
are trying to better protect the environment and here in the West the
environment and here in the West the
environment and here in the West the growth of social impact investing the
growth of social impact investing the
growth of social impact investing the idea that you can do good and make a
idea that you can do good and make a
idea that you can do good and make a profit at the same time is being used to
profit at the same time is being used to
profit at the same time is being used to protect and promote human rights so
protect and promote human rights so
protect and promote human rights so there’s an enormous potential within
there’s an enormous potential within
there’s an enormous potential within finance to help everyone in society and
finance to help everyone in society and
finance to help everyone in society and not just a privileged view but for that
not just a privileged view but for that
not just a privileged view but for that potential to be exploited we have got to
potential to be exploited we have got to
potential to be exploited we have got to change our attitudes and expectations of
change our attitudes and expectations of
change our attitudes and expectations of banks and bankers be less tolerant and
banks and bankers be less tolerant and
banks and bankers be less tolerant and accepting of ideas and cultures of
accepting of ideas and cultures of
accepting of ideas and cultures of entitlement selfishness of greed and
entitlement selfishness of greed and
entitlement selfishness of greed and more demanding that banks give back more
more demanding that banks give back more
more demanding that banks give back more than they take banks after all are the
than they take banks after all are the
than they take banks after all are the servants of society not its master and
servants of society not its master and
servants of society not its master and so my message and it’s been a long time
so my message and it’s been a long time
so my message and it’s been a long time coming might my message to banks is
coming might my message to banks is
coming might my message to banks is simple and it is this ask not what
simple and it is this ask not what
simple and it is this ask not what society can do for you but what you can
society can do for you but what you can
society can do for you but what you can do for society and that’s what banks o
do for society and that’s what banks o
do for society and that’s what banks o us
”
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