Bradford professor says core problems must be tackled (From Bradford Telegraph and Argus)

Bradford professor says core problems must be tackled

3:11pm Thursday 26th November 2009

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Until bankers adopt a new ethical code and stop being greedy, Britain remains at risk of another financial meltdown, according to a leading Bradford business academic.

Professor Roszaini Haniffa, an expert in corporate governance and banking, said proposals to reform the banking industry being published today will do little to get rid of the greed that led to the taxpayer bailing out major UK banks.

Professor Haniffa, who lectures at Bradford University School of Management, claimed the City of London’s banking leaders were not serious about protecting the UK against another financial crash.

She believes the recommendations of the Walker Review being published today were unlikely to address the fundamental issues.

Professor Haniffa said: “We need a proper overall strategy that tackles the core problem of greed and lack of ethics.

“The Walker Review looks at board governance and is urging institutional shareholders to win back ground lost to the state since the financial crisis began and the remuneration committee to be given more power to set and revise pay.

“Will this really increase effectiveness and stop another crash? The answer is no.”

She said that if the City was serious about change, it needed to rethink basic principles of banking.

Professor Haniffa said: “We now know that the Government will not let major banks collapse. If the public eventually has to pick up the shortcomings of banks then the public should be more involved and represented in how they are run.”

Professor Haniffa thinks banks should be smaller, bank boards should be more representative of depositors, employees and taxpayers and non-executive directors need better financial training.

She said: “All the recommendations in the Walker Review and other reports sound good on the surface, but we need to agree the framework first.”

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