Banker scam are now called "conduct risks"

[Lauren Johnson]

I particularly like Carney's statement that the banks mustn't see fines as a "cost of doing business".

Ergo: that's exactly how they see it. They make a handsome net profit after paying the fines.

Telling them to behave isn't going to make a dent in their profiteering. Money speaks louder than morals.

There has to be a way to monetize "conduct risk" so that it is irrelevant. Remember, Wall Street and presumably The City figured out a way to take on as much risk (Collatorized Debt Obligations) as one liked as much as it liked just so long the CDO's were paired with CDS (Credit Default Swaps). Somebody could make a lot of money writing Conduct Disaster Swaps for fat fees. Just having these guys employed would be the long end of the trade.

Oops. I just realized the problem with this -- there would be no tranches, since there would be only one tranche -- the just-don't-get-caught tranche.