As a Financial Industry 'outsider' it's gratifying to know that someone is looking 'inside' too. As I see it, the problem starts with remuneration - As long as I get paid, immediately, in full, for writing up new business (i.e. short-term), regardless of the 'long-term' outcome of that sale, I get the clear message that 'booking' new loans, and making my 'quota' is all that counts. Conversely, if my income (and the income of my boss) depends on 'good' loans, where we both have a vested interest in a long-term return - then that's what I'll be doing - writing good loans. Supporters of the recent, huge bonuses in the banking industry use the same bogus argument. "We have to pay top dollar to get the top people!" Whereas, in fact, fast money attracts "Fast Eddies" - "Get in, Get your cash, Get out". Proof is easy to discover - From Presidents Bush & Obama on down, couldn't most of the top government leaders of our country, Senators, Representives, make (a LOT) more money in some other line of work? Regardless of your politics, you have to concede that they, and many of the leaders in the business community, are certainly not motivated by short-term profits and self-interest. Is it naive to believe, that many of those strong, competant, motivated leaders are simply looking for success? - And they measure their success - not by self-enrichment, but by making a positive difference within their area of endeavor? Would you buy a new refrigerator or a new car from me without any kind of 'warranty'? Probably not! But, you buy every loan I write and pay me cash up-front. This is your game and you write the rules! I'm not exactly sure what is meant by a "Pig-In-A-Poke", but kinda thinking that's what I sell! The answer to your question, "How do we encourage and promote honesty....." is, to me, simple - start rewarding integrity, instead of dishonesty. 'Implementation' might be a greater obstacle ......
