The Lepus report cites a survey by The Economist and SAS. Of 316 financial services executives, more than 70 percent thought that their losses during the financial crisis were duetoproblems with risk management.
Some critics will suggest that perhaps some of these jobs are due in part to the management style of General Motors, the problems they have had over the years, but this is a growing trend in America, is it not?
Then giant hedge fund Long Term Capital Management collapsed dueto big bets on Asian currencies, causing problems also for the large banks that had financed it.
They face similar problems: demoralised staff and a bad image dueto years of losses, and a lack of management credibility given the failure of past rescue efforts.