Bankers are not only being pilloried at a special session of the Swiss parliament these days. Now the profession and culture is increasingly decoupled from a society that is seeking revenge, finews.com observes.

At an extraordinary session of the Swiss parliament on the takeover of Credit Suisse by UBS, the indignation over bankers is palpable. A member of the Social Democratic Party, Eva Herzog, conjured the image of greedy and unscrupulous bankers when she mentioned Leonardo DiCaprio in the Hollywood film «The Wolf of Wall Street» at the lectern. The tone was set. 

Equally biting was the criticism of her SP colleague Roberto Zanetti who said he has much more respect for an ordinary bank robber because they accept a considerably higher entrepreneurial risk than the «Masters of the Universe» on Bahnhofstrasse.

Pride Cometh Before the Fall

In the National Council, the anger was vented in a symbolic act, where the billions in loans granted by the federal government were not summarily waved through.

The mistrust from the Federal Council undoubtedly has much to do with the parliamentary elections in the fall. However, the broadsides are also indicative of the scorn and derision that is raining down on bankers these days, also in professional circles and on the streets. The fall from the high horse hurts an entire profession.

Megalomania at the Top

To be sure, the image of bankers was tarnished before the emergency rescue of Credit Suisse. Since the 2008 financial crisis, in particular, bankers have often been perceived by the public as self-serving know-it-alls with a tendency toward megalomania.

These sweeping judgments need to be put into perspective about business areas and hierarchical levels. Relationship managers who are in constant contact with their clients and have not become untethered from reality usually do not have a bad image. The situation is different in the oak-lined hallway and offices where, in the case of Credit Suisse, the grossest management mistakes were also made.

In addition to overpaid «rivets in pinstripes,» another cause of the bad image is often seen as the business behavior of the bonus-driven investment banker, which has become widespread in many banks in Switzerland in particular over the past decades.

However, blaming the bad reputation of an entire industry solely on this type of bank is only part of the truth.

Collective Irresponsibility

There are also numerous pitfalls, especially in asset management. It can be especially damaging to a bank's reputation if too little attention is paid to suspected money laundering. Credit Suisse experienced the consequences of this in a dispute with US authorities, who fined it billions for aiding and abetting tax evasion.

The culture of collective irresponsibility also contributes to the tarnished image of the serious banker. At Credit Suisse, this turning a blind eye manifested itself in the careless handling of risks in the Greensill supply chain fund or the loans to the Archegos family office.

Disregarding Investors

The US Securities and Exchange Commission (SEC) also discovered serious deficiencies in the reporting system of the big bank. Such lapses, which Credit Suisse's CFOs refused to properly categorize, were poison for investor confidence in the bank, which is also listed on the US stock exchange.

It is no surprise that the SEC showed no mercy for listed companies that unilaterally dismiss accounting errors as immaterial to investors.

Purification in Humility

Not all bankers can indeed be lumped together. Nevertheless, all of them are now being ridiculed with the same fury, whether in the Federal Parliament, at work, or home.

The only way out of this clannishness is for the profession to endure and accept the criticism collectively practice humility individually and reestablish a better work ethic. It is time for the brittle but serious banker to return, standing not above but in the middle of society.