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Short-termism and unrestrained corporate greed must be eradicated. Deregulation must be reversed. We need to see a return of business ethics and responsible government.



Casino capitalism with too many cardsharpers and supervisors asleep is at an end. The bankruptcy of Lehman Brothers and the near-failure of AIG bear witness to this.



“What we have seen is a scorched earth policy of maximising profits for short-term investors and yearly incomes for top managers,” said Philip Jennings, UNI General Secretary.



“It is high time for financial institutions and investors themselves, but foremost for regulators and governments to act responsible and stop these excesses.



“First of all, they must work together to stabilise the financial system. They must ensure that ordinary people in the financial industry and beyond do not lose out.”



UNI Finance has been calling for a re-think of the world’s financial system since the beginning of the crisis last year. In May, it put forth 13 demands for effective reregulation of the financial system.



Governments and central banks have now bailed-out several companies and continue to undertake huge interventions in the markets at enormous costs to the taxpayer. UNI Finance is adamant that this public help for private failures is used to enforce the necessary changes to the industry.



Public interventions show that consolidation at national and international level has resulted in financial institutions that are too big or too important to fail. The financial crisis must not lead to further concentration in financial markets and oligopolic structures.



UNI Finance is in favour of a financial system that comprises small, medium and large companies; that comprises not only private institutions geared towards maximising profits but also public and cooperative ones. Such a pluralistic structure provides extra stability and must be nurtured by governments and regulators.



UNI Finance demands tighter control of financial players. Transparency must be ensured in product design and market functioning, in particular the risk companies enter must be clear – to them, investors and regulators.



For ordinary finance workers, the prevalent culture of profit at all costs has led to excessive workloads and forcing them to put customers second to aggressive sales targets. Indeed, some financial institutions meet the decline of their business by putting up sales targets. They have not learnt the lesson – they try to combat their failure by the same instruments that brought about this financial crisis in the first place.



UNI Finance demands a radical change in working methods. Regulators and companies must ensure that working conditions and pay incentives promote rather than hinder regulatory objectives and excellent customer service.



The current business model of the financial industry has failed. The primary purposes of a bank or insurance company are to provide good service, good jobs as well as good and sustainable returns to shareholders. Moreover – what should not be forgotten – a company has a responsibility to society at large, nationally and globally.