Wednesday’s Headlines: Report Finds Pay Structure Pressures Some Wall Streeters to Cheat
Wall Street may need another lesson in ethics and integrity. According to a report conducted by whistle-blower law firm Labaton Sucharow and reported in DealBook, a survey of 500 financial professionals in the United States and Britain found that a quarter believed unethical behavior helps bankers get ahead, and another quarter said they’d seen such wrongdoing first-hand.
Interestingly, 30 percent of those surveyed said the comps structure incentivized shady behavior, and 16 percent said they’d commit insider trading if they thought they could get away with it. But not only are bankers wannabe crooks, they’re also finger-pointers, as 39 percent said they thought their competitors were conducting unethical or illegal acts.
In response, former Bank of America exec Sallie Krawcheck tweeted, “Oh dear…”
Q&A: Understanding the Libor. [DealBook]
NYSE’s plans to launch a dark pool. [Businessweek]
Blackstone will unload its $22 billion office portfolio. [WSJ]
One-year MBA programs see a jump in enrollment. [CNN Money]
China opens its doors to foreign hedge funds. [Financial Times]
Regulators charged a futures firm Peregrine Financial and its CEO with fraud after $200 million customer funds went missing; CEO attempts suicide and files for bankruptcy. [NY Times]
Banks should prepare for employee lawsuits over 401(k) diversification. [Investment News]
Financial firms rank low in transparency rating. [Fortune]