Nine downright dodgy practices in the City of London

  1. Ripping off, where you lie to your clients.
  2. Market rigging, where you lie to the central administration of Libor or forex.
  3. Risking, where you lie to yourself about the risks you are taking or lie to your superior and then the regulator.
  4. Rogue trading, where somebody hides their losses for a long time.
  5. Credit agencies being paid by the banks whose credit they rate.
  6. Accountancy firms taking consultancy contracts with banks whose accounts they audit.
  7. Leveraging, borrowing money from another bank to invest in shares or some financial asset.
  8. Government borrowing money from banks to pay banks for savings they have lost in bad investments, which has encouraged bad investments.
  9. The rotating door between regulatory authorities and banks, where people regulate banks with an eye on working for the bank at a later date.

 

All of these practices were identified by Stephen Morris in his Outsiders Guide to the City of London.

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