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Layoffs and cost-cutting and after excess and perks. Commentors in the aftermath of the last financial crisis have often wonder aloud, in fact very loudly, if that’s any way to run a bank.The Guardian’s Joris Luyendijk spoke to a VP in corporate finance at one of The City’s banks over espresso. this banker had the decency to be frank with him about why he thought banks were often poorly run.
“I think you could argue that investment banks are not always very well managed. What makes a good banker is not what makes a good manager. As soon as things are going well, they start hiring like crazy. Then there’s a bit of a downturn and they make all these people redundant again, paying large severance packages. You end up with organisations that are slightly short-sighted, with little continuity or institutional memory.
That sounds like it could be right.