If it all went wrong, the bank carried the losses until, as we saw with the spectacular 2007 banking collapse, the taxpayer did if nobody else seemed interested. Surely this would never have happened in the world of ‘Gentlemen and Players’?
The new world of deregulation is now seen in many quarters as reckless abandon, using somebody else’s money to trade on your own account for the benefit of the Banks who employed you and more importantly yourself.
The largest banking fine in history levied this year has shown only too clearly that for rogue traders, in Gordon Gekko speak: “There is a very big difference between rehabilitation and repentance” and, as far as casino banking and regulation is concerned, there is some way to go on both counts.
And so it seems Gekko has proved himself a master philosopher in this case: the banks, post Big Bang, did take our money and were not responsible for what they did with it.
The sea of change of deregulation saw the disappearance of the City’s traditional and cautious values, using your word as your bond along with a good bit of trust and a quick nod, wink or tip added for good measure.
But without condoning this behaviour (I wouldn’t feel too sorry for the old City breed either; the majority retired immediately having “trousered” a lot of money) admittedly, upon reflection, the financial services world did seem a nicer, gentler place in the years prior to the Big Bang.
Derek Bradley is founder and chief executive of PanaceaAdviser
