Wal-Mart and impoving honesty in the financial industry

It’s hard not to get the idea that large sections of the financial industry operate on a culture that what most of us would consider fraud is acceptable and even desirable.

The question is how to change that culture.  It appears that legislation and enforcement just doesn’t work.  There are always loopholes to exploit.

For a while I’ve been wondering if making the industry more competitive would help as competition reduces profits.  One would have to repeal legislation and regulations which limit competition (and wear hearing protectors from the screams of those in the industry.)  One would also have to take away from banks the ability create money by making loans. (Even louder screams.)

If the industry were more competitive would its firms have to be more honest just to stay in business?

i don’t know the answer to that question but it was with considerable interest I noticed the following quotes from the article about Wal-Mart in the artlicle in yesterday”s post.

 

By now, it is accepted wisdom that Wal-Mart makes the companies it does business with more efficient and focused, leaner and faster.

 

To a person, all those interviewed credit Wal-Mart with a fundamental integrity in its dealings that’s unusual in the world of consumer goods, retailing, and groceries. Wal-Mart does not cheat suppliers, it keeps its word, it pays its bills briskly. “They are tough people but very honest; they treat you honestly,” says Peter Campanella, who ran the business that sold Corning kitchenware products, both at Corning and then at World Kitchen. “It was a joke to do business with most of their competitors. A fiasco.”

 

Those sound like qualities which are desperately needed in the financial industry and from which everyone would benefit.

Maybe we should be encouraging Wal-Mart to go into the financial industry.

 

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