The arrogance of capital II

For me, the financial sector of shareholders, investors, real estate, and banks has always been a murky world. A world shrouded in a haze of dubious transactions, difficult to fathom and control, where self-interest is paramount.
Large corporations also push the boundaries of what is permissible, increasing distrust in the power of capital. I am referring, for example, to the accounting scandals at Enron, World Online, and Ahold.
My perception is that many people and organisations are making a lot of money, in many cases exorbitantly so, without corresponding performance.
The role of asset managers can be, to say the least, very dubious at times. In both good and bad times, costs are high, and past results offer no guarantee for the future.

But the role of shareholders also leaves me astonished. I sometimes find it immoral and reprehensible.
The way ABN AMRO was sold, and the consequences it has, not only for the Dutch financial market but also for the thousands of employees at this bank, fuels my sense of incomprehension and dissatisfaction.
It confirms my opinion that the financial world is not functioning well.
This is even more true for the American financial sector.
There, too, thousands of financial experts work, investing billions in, for example, mortgages. Real estate is the market where much can be earned, and its value can rise quickly.
How is it possible, then, that American banks, which a year ago were the money machines of the world, have now suddenly become mega dollar destroyers.
I am filled with bewilderment when I read that American Citigroup squandered 18.1 billion dollars due to a disastrous investment policy. That policy has now become fatal for the bank and has consequences not only for thousands of employees losing their jobs. This financial crisis also has significant implications for the world economy. Hardly recovering from my astonishment, I read that Jérôme Kerviel, an employee of the French bank Société Générale, lost 4.9 billion by speculating on the stock market.
Has the banking sector learned nothing from the Barings debacle? In 1995, Nick Leeson blew up the entire bank by losing 1 billion through fraudulent actions.
It seems that the managers of capital are unable to hedge large risks.
Is this due to a lack of expertise or arrogance? I fear both.
The financial world is not solidly constructed and falters in important areas.
The control is inadequate, the casino aspect is too high.
Fortunately, the Dutch economy has not yet suffered significant damage from all the problems in the financial markets. However, the trust of "the ordinary citizen" is being severely tested in this way.
It is high time for the financial world to set aside arrogance and do what it promises: invest responsibly and sustainably! Ben Francooy
Chairman FNV Catering