Prosecute bankers, not just banks, for malfeasance: IMF chief
07 November 2015, Nirapad News: International Monetary Fund chief Christine Lagarde called Thursday for prosecution of individuals in the financial industry for misconduct, saying fines against firms alone were seen merely as a “cost of
Lagarde said that holding individuals accountable for wrongdoing would be an important way to raise ethics standards in the financial services sector, whose
reputation has been hammered by repeated scandals and misconduct.
“Despite evidence of actual malfeasance in several cases, it has been mostly corporate balance sheets that have borne the brunt of legal sanctions for reckless behavior—not individuals,” Lagarde said at a workshop on reforming bank culture at the Federal Reserve Bank of New York.
“In fact, sanctions directed at financial institutions have come to be perceived simply as a ‘cost of doing business,’ which calls for adequate provisioning,” she said, according to her prepared text.