Thursday, 20 December 2012

Just Monitory Fines for banking crimes are not enough.

One after the other major banks of the world are being fined by UK, US or European governments for their roles in tempering with the LIBOR rates and many such irregularities. And authorities are just putting a fine on banks which will be paid by the bank from it's profit which obviously was meant to be shared by the shareholders. But none of the banking officials who really committed those mistakes are being punished.  
This will not stop the banking officials in future from committing the same fraud again and in fact they will just shrug off these fines and will carry on with their work.
So where is system being improved? where are we putting more rigorous checks so that in future similar things do not happen? No where?
Just fines will not work, there has to be serious punishments to the banking officials and to the banks also which are involved in such practises.