What happens to the culture of an organization where everyone knows you’re cheating? Does that matter if you’re a bank? Does anyone care?
I was struck by the reports that BNP had a practice of taking affirmative steps to hide its US dollar clearing transactions. This led to a nearly $9 billion fine, payable to the US Treasury. Apparently, everyone knew, including the Compliance (for lack of a better title) folks. And senior management. What other frauds, petty and otherwise, were the bank’s employees carrying out, either for the “corporate good,” or for their own good? No one blew the whistle, either internally or externally? Incroyable!
“BNP ‘Tour de Fraud’ Draws Record Fine,” Wall Street Journal, July 1, 2014 C1 http://on.wsj.com/1qNhegH I guess I am hopelessly naïve.
If the Target directors a getting gas for failing to have IT security on their minds, should BNP’s directors (and shareholders) be spending some time on Devil’s Island? Tant pis.