With the national jobless rates hovering around 9.6% some financial firms continue to throw lavish parties for top traders and sales persons amid layoffs. Fox Business News reported that Bank of America will be slashing up to 5% of its employees in the capital markets division but will be holding a swanky party at 230 Fifth Avenue, a rooftop bar that was rated among one of the best rooftop bars in New York.[i]
It is amazing how some financial service firms will complain about the cost of regulation and continue to party like the financial crisis did not exist. The financial services sector as a whole must recognize that it can no longer be “business as usual” and that they have the ethical responsibility to ensure adequate systems are in place to protect the individual investor. In addition, these firms must take the moral high ground and exercise prudence when trying to reward the hard work of one group of individuals while laying off another group of individuals.
[i] Charlie Gasparino & Sital Patel, FOXBusiness, Published September 23, 2010