Carol Realini on conflicts of interest in the US banking system

Written by Carol Realini Tuesday, 31 July 2012 08:23
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Extracted from Carol's blog ...


In April 2011 the United States Senate issued the Levin-Coburn Report.


Written by a bi- partisan commission of US senators, including both conservative senators and Tea Party favorites such as Tom Coburn, Rand Paul, and Scott Brown, the report found “that the crisis was not a natural disaster, but the result of high risk, complex financial products; undisclosed conflicts of interest; and the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street.


So why don’t we seek out all these conflicts of interest and eliminate them?


One of the challenges of bank regulation in the United States is that the banking industry is regulated by a patchwork of federal agencies and state agencies that are the cumulative result of financial crises dating back to the Civil War.


The Federal Reserve, the Federal Deposit Insurance Company (FDIC), the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) all oversee the industry.


A parallel state banking system gives bankers more opportunities to influence regulators because they can participate in regulator boards like Mr. Dimon is doing. Just know – he is not the only one.


I would say, there are direct (Jamie Dimon) and indirect (Ann Darby) conflicts all over the system.


To read the full blog click here.


BankRUPT is out now


Some more about Carol:


Serial Entrepreneur, Mobile Payments and Banking Pioneer, Author, Board Member Carol Realini is a successful Silicon Valley executive and expert in financial service innovation.


She has worked with leading financial institutions including MasterCard and Citi, as well as numerous multinational and regional banks, to change the way banking is conducted. In 2011, as a Technology Pioneer attending the World Economic Forum, she led discussions on alternative banking at their meeting in Davos.


A serial entrepreneur, she has been recognized as one of the 50 Top Women in Technology by Corporate Board Member magazine.


Carol is a huge believer in the potential of mobile banking and payments to create financial inclusion - where everyone with a mobile phone has access to affordable financial services that empower their life and work. 


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