Ethics and governance in the European Financial centers

“It is inexcusable that the entire market value of a financial institution can be placed at risk by such abject carelessness on the part of a leading European bank, that that institution failed to heed the warnings of a significant market counter-party and failed to learn the lessons that rogue traders have taught us about the checks, balances and controls that must be in place for risk to be effectively managed and controlled.”

Charlie McCreevy, EU’s internal market commissioner (Quoted by the FT)




It is all the more inexcusable than the bank like the other banks has beatiful web pages on risk management, corporate social responsibility, compliance, deontology, ethics... that turned out to be charade.

Banks are no longer reliable and trustable in their CSR that turned out to be charade.

Nobody raised the point : but we have competitors behaving as vultures.

A couple of days ago IMS Luxembourg published a press release.
The society is alive despite the lack of events in 2007.
There are new members (24 registered and 20 in the pipe) which is a good thing.
Unfortunately they did not change the areas of interest that are rather limited for a financial center as I already explained.
Especially areas like AML and ethics that are critical areas for CSR in the financial sector, are ignored to focus on money given.

Know more (french)

I went through the Société Générale's website to read pages relating to compliance, ethics and CSR

There is a very interesting page about tax havens to repudiate clearly the use of such financial centers: "Société Général has defined strict rules to avoid setting up in those countries considered to be tax havens in the OECD or blacklisted by the FATF."

But the last paragraph clearly cancels the commitment of the previous one : "However the group does not rule out working in these countries providing they already have an effective banking and financing sector that meet the economic needs of a local or international customer base, as is the case in Monaco for example."

The blacklist is empty and every country that is considered as a tax haven has anyway an effective banking and financing sector that meet the economic needs of a local or international customer base.

Tax havens are definitely supported by everyone despite official statements to repudiate them.

A bank cannot afford to be out of the business in a financial center including tax havens.



Banks have clear but pragmatic ethical rules.