MAS favours going after errant bankers
THE hefty fines that hit banks in the United States and Europe for misconduct are punishing shareholders of such institutions rather than addressing the misdeeds of individuals - a serious failing of the current regulatory regime, said Monetary Authority of Singapore (MAS) managing director Ravi Menon.
Regulators have doled out an estimated US$350 billion in penalties on banks, but they have not gone after top banking executives. Recent reports show that out of some 156 criminal and civil actions levelled against large banks by the US Department of Justice (DoJ), less than 20 per cent of these suits involved bank employees. And as estimates put the cost of the crisis at roughly US$15 trillion, Wall Street's top bankers stayed out of jail.
The MAS has fined eight banks nearly S$30 million for 1MDB-related lapses. Asked if the fines levied on banks involved in 1MDB have been heavy enough, Mr Menon pointed out that huge fines do not hit a bank's senior management, board of directors or the errant individuals.
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