During the collapse of Lehman Brothers in 2009, a bank relationship manager spoke to me. He did not realize that the structured products were risky. He told his customers they were safe. He sold $500,000 to his own mother who suffered a large loss. The bank warned him not to admit that he gave the assurance to the customers as he would be held personally responsible fir any claims. It is clear that many of the relationship managers were not giving proper advice, as they were not competent. They focused on meeting their sales quota and receiving a fat incentive. Our local banks did not create these products. They were created by the big American banks. Our local banks earned a commission to sell these toxic products. Sadly, they did not know they were toxic, until they burst. The customers suffered the consequence of the bad advice - not the bank or the relationship manager.
Posted on: Tue, 06 Jan 2015 02:17:18 +0000
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