If you want to work for an organization that is squarely focused on making profits, don't work for a UK bank. That was the most recent message from FSA Chairman Adair Turner. The age of profit as the primary motive of financial institutions should be replaced by "social usefulness". In fact, there may be some products out there so socially useless that they should be abandoned altogether, regardless of their ability to help repair roughed up British banks.
"Top management of banks -- and in particular of any banks which are involved both in complex trading activities and in retail banking activities -- need to operate within limits," Turner told 300 financial-services executives and lawmakers late yesterday in London. "There are some profitable activities so unlikely to have a social benefit, direct or indirect, that they should voluntarily walk away from them."
Welcome to the age of walking away from your problems solutions.
Banks Should Prioritize 'Social Benefit,' Turner Says [Bloomberg]