Discover your dream Career
For Recruiters

How to justify your finance career to leftist relatives, by Deutsche Bank

How bankers can justify themselves to Marxists

If you're in the US, the coming days will be spent in the company relatives, some of whom may not be totally approving of your red-blooded capitalistic career in finance. How can you deflect their criticism? Fortunately, Deutsche's new Konzept Magazine offers some hot tips.

In a piece titled, 'On your Marx, Bankers vs. Politicians,' Deutsche's global head of FX research, Bilal Hafeez suggests the Marxist method of de-fanging bankers - government ownership - wouldn't work.

"State-owned or dominated banking systems are no better than private ones at averting crises," says Hafeez. "If anything they do worse.  Japan, with its intimate link between government industrial policy and bank lending in the 1980s, could not prevent the subsequent decades of stagnation. Moreover, an IMF study of all the major bank crises since 1970 found that indeed state ownership of banks was a

common factor."

Rather than exposing the wrong doing of the privately-owned banking sector, Hafeez says the recent financial crisis showed that every kind of financial system was susceptible instability. US investment banks were as affected as small regional banks in Europe and high street banks in Britain. The reason for this, he argues, is that bankers themselves weren't to blame for the problem. "The root cause of the crisis was a binge in credit that fuelled household debt and and real asset boom that eventually went bust."

Moreover, Hafeez says simply regulating banks is insufficient to prevent future crises. This is because bankers aren't the only ones with a vested interest in driving asset booms which turn to busts. Politicians and homeowners are equally culpable and no one's talking about regulating them.

author-card-avatar
AUTHORSarah Butcher Global Editor

Apply for jobs

Find thousands of jobs in financial services and technology by signing up to eFinancialCareers today.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Latest Jobs
Sadella Advisory Services Limited
ASSOCIATE M&A – HONG KONG
Sadella Advisory Services Limited
Hong Kong
KGI Hong Kong Limited
Associate, Digital Innovation
KGI Hong Kong Limited
Hong Kong
Recruitment Intelligence Consultants Limited
(SENIOR) INVESTMENT COUNSELLOR, ASSET MANAGEMENT
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
FINANCE REPORTING & ANALYSIS - SENIOR MANAGER / MANAGER
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
REGIONAL BENEFITS, HUMAN RESOURCES - MANAGER / SENIOR MANAGER / AVP
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
INVESTMENT WRITER
Recruitment Intelligence Consultants Limited
Hong Kong