$8.9 billion may sound like a lot but I contend it as absurdly understated as the fine GM paid to settle that it knew it was selling faulty autos.

The scandals at all the big banks are large, multi-faceted, cultural, and problematic. Like a vital organ when you know it must go but you will die without it. Since we didn't put strings on the bailouts starting with a sweep of management we are stuck with players whose interest is to forget the past and get back to stamping out profits. Add the horrendous behavioral culture of a Wall Street trading desk to interbank dealings you get what we got.

The unforced error of the crisis is most clearly evident with the FOREX and LIBOR scandals, and they are unquantifiable, but lest we forget the mortgage production operations that came and went with nobody above middle management being called to the carpet.

I believe that the call for Elizabeth Warren to be a very interesting tell on the U.S. political situation. Like drums in the distance the calls seem to be getting louder. I can name one U.S. industry that would not like to see her run for president.

Eoin Treacy's view

Thank you for this thoughtful comment in response to the Barclays related article David posted yesterday. Increasing awareness of the underhanded trading practices at a number of firms and their ability to dictate public policy through relationships with politicians is doing nothing to improve sentiment among the general public. I agree that this almost certainly ensures that governance and inequality will be a significant talking point in both the USA’s mid-term and Presidential elections.