The Banker Chronicles
It was Monday morning. Steve sat on the bean bag with eyes closed. He was lost in his own thoughts. How did it all come to be this? Where did it all go wrong? Faced with one of the toughest decisions of his five year career, Steve couldn't see light at the end of the Tunnel. He felt a splitting headache. He was exhausted more than anything else. All he wanted to do was curl up in his bed and sleep. But sleep had eluded him for the past 48 hours. He struggled to keep his thoughts focused on how to wriggle his way out of the mess he found himself in.
Three Weeks Back...
He had just closed a tough deal worth USD 50 million which was going to earn handsome profits for the company in the next 3 years. Things had been pretty tough. He not only had to convince the client about the transaction structure but also work with the Bank's legal and compliance departments to get their sign-off on the deal. His manager had long given up hope. His peers joked about the mirage he was chasing . But steve wasn't one who would give up easily. He had convincingly demonstrated to the internal stakeholders how he was managing all the risks to the bank while at the same time keeping the client happy in spite of the delay. For a change, the client was patient - the last thing you could hope for in a Bank. Finally at the end of a month's efforts he was able to crack the deal.
A huge party followed the night money was disbursed to the client. They were pioneers in the country so far as this transaction was concerned. For a Bank which was a mid sized player, this was a huge achievement. Steve stayed on till about 2 PM with friends and left for home in a taxi.
He was up early the next morning and reached office by about 9 AM. While he walked towards his desk on the third floor of the building, he received congratulations from all around -some familiar faces and some not so familiar. This was not his first success at the Bank. Ever since he joined the firm he stood out for his ability to get things done. He also enjoyed good visibility at the top rungs of leadership. He opened his mail box and was happy to see an invitation from Rafael - Director of the Debt desk to meet him in his corner office for lunch. This was the meeting he had been waiting for. He had been expecting a promotion and felt that the director would convey the good news today. His heart was filled with joy as he entered the director's office for lunch.
He had met the director only a few times before during company parties. But steve felt this was the beginning of a new chapter in his career. He shook hands with the boss man and sat opposite to him on the table. Rafael was a man of few words but was well-known for his shrewd mind and business acumen. He was believed to be the driving engine of the bank's growth.
Rafael spoke first - "Steve, I am a man who shoots straight from the heart. We have been watching you for the past few years and you haven't disappointed us. In more ways than one you have always performed beyond our expectations.But there comes a time when we have to decide if an employee is ready for the next big step and I am not being metaphorical here.."
Steve's heart started beating faster. The director's calm voice seems to create a soothing feeling on his mind. At that moment, if he said he could be happier in life, he would probably be lying. Finally the end was in sight.
Rafael continued - " Now before we shoulder you with the big responsibility, we want you to handle one more important responsibility. The knack with which you were able to close the Bernstein transaction leaves me with no doubt that this should be a cake walk for you. Get in touch with Robert and be assured you are on your way to be a future leader of this bank"
Coming from someone like Rafael, this was a huge compliment. Steve knew that Rafael wouldn't hand him something if he did not believe in his capabilities. He immediately spoke to Robert and asked him to forward all emails pertaining to the transaction.
The first week was spent following up with different stakeholders trying to understand the transaction. All the while steve could almost feel an undercurrent from whoever he interacted with. There was a sense of anxiety which people went great lengths not to show. Key people who had worked on this transaction had already moved onto different banks. Most of the knowledge he could gather was from different email dumps he received from Robert who himself did not know much about the transaction.
Two weeks into the Task...
Finding it difficult to make progress on the transaction, he got in touch with Arnold who was the VP who was instrumental in executing this transaction. Arnold had recently joined an investment bank in CBD (Central Business District). He was initially reluctant to meet but steve's powers of persuasion prevailed over him. They met in the chinese restaurant along the bay. When steve questioned him about the transaction, Arnold was mostly evasive in his replies. It seemed that he was not comfortable discussing anything related to the deal. But inadvertently, Arnold let out that the deal was mired in some legal tangle. This heightened steve's fears.
Steve went back and looked through all the documentation to see if the legal team had indeed approved of the transaction.His follow ups did not yield any positive new. Meanwhile he received a email from the internal audit team informing him that the central bank would like to audit the deal. Steve started putting the pieces together. One leg of the transaction which was a Letter of credit was funded by the client but never executed. The fee collected simply could not be traced. He did a quick check on similar transactions and all of them eerily followed the same pattern. The money was siphoned off. It was just not about the money. Any leak of this to the press and He could almost see the next day's headlines - "Bank dupes customer - Financial scandal of the decade". The regulator would immediately get into action and could lead to severe penalties or even cancelling of the Bank's licence.
The Final Nail in the Coffin..
Steve knew he had to act and act fast. He tried explaining things to his manager but he didn't seem to pay much attention. He was deliberately ignoring him. All his efforts to reach Rafael failed. He had gone on a vacation to Tahiti Islands and couldn't be reached for the next one month. He reached out to the company's Legal Head - Bob. Bob had been a bank's veteran. Aged closed to 55 he always joked about setting up a restaurant once he retired. But it was difficult to get an appointment from him. His previous interactions with Bob had helped him gain his trust. He rang Bob - " Bob there is a transaction that I need to urgently discuss with you and I need at least an hour..".
Bob was surprised. He wouldn't even grant the company's CEO an interview for one hour and this young kid was asking him for a hour. After a moment's pause he said - " Look kid..I would really like to help you but don't think i can meet you this week..". Steve knew he had to make an impact on Bob. He said - " Bob my only job for today is to talk to you. I want to discuss in particular about a transaction where some legal sign offs are missing!!"
There was silence at the other end. He knew he had made the right noise. Bob said - " 3 PM kid and you have half an hour". Steve met Bob at the appointed hour and took him through the transaction details. Bob listened patiently and finally said - " In sharing these details you have brought up a very serious issue but you also need to understand that there is a larger responsibility that you owe to the bank. You need to become a whistleblower.."
Ah.. how steve wished that Bob hadn't said that. He was hoping Bob would take the lead and ensure that everything was set right. But it wasn't to be. Being a whistle-blower was something that wasn't an easy thing to do in the world of finance. Word always leaked out on the employee who went against the system. The inquiry that follows is a long drawn process and usually the bank covers up its mistakes and victimizes the whistleblower. Only occasionally does the real culprit get punished. But for the whistleblower it was a slow death to his career.
Time to bite the bullet...
The conversation with Bob had shook him off completely. He decided to take the rest of the day off feigning illness. It was a friday and that offered him two days to make up his mind. Did he wish to be a hero and put his career on line? How he wished if he could turn it all back and wish he was never a part of this. His best instincts told him not to go ahead with this. He could always go on an unplanned vacation and come back after things were sorted out. But his morality didn't agree to that. He was caught between the rock and a hard place. For the next 48 hours, he kept thinking if there was a middle way where he need not be the martyr and yet save the bank.
Answers eluded him. Finally his conscience won over his ambition. He met Bob Monday morning and told him he was ready to do the right thing.
Epilogue:
Today marks Ten years to the incident. Steve is 42 years old. He no longer works in finance. The long drawn inquiry did not punish the guilty but it took corrective measures to protect the bank's interests. Steve moved out of the bank in disgust but he had already been branded a traitor. Word spreads quickly in banking circles and he became notorious as a trouble maker. Finding it tough to find a footing in the banking industry, he slowly moved onto smaller jobs in other sectors.
Now he works as a Purchasing manager for a mid sized conglomerate. His career hadn't exactly rocketed as he had hoped for but his clear conscience ensures that he stays happy. In the end isn't that what really matters!!
It was Monday morning. Steve sat on the bean bag with eyes closed. He was lost in his own thoughts. How did it all come to be this? Where did it all go wrong? Faced with one of the toughest decisions of his five year career, Steve couldn't see light at the end of the Tunnel. He felt a splitting headache. He was exhausted more than anything else. All he wanted to do was curl up in his bed and sleep. But sleep had eluded him for the past 48 hours. He struggled to keep his thoughts focused on how to wriggle his way out of the mess he found himself in.
Three Weeks Back...
He had just closed a tough deal worth USD 50 million which was going to earn handsome profits for the company in the next 3 years. Things had been pretty tough. He not only had to convince the client about the transaction structure but also work with the Bank's legal and compliance departments to get their sign-off on the deal. His manager had long given up hope. His peers joked about the mirage he was chasing . But steve wasn't one who would give up easily. He had convincingly demonstrated to the internal stakeholders how he was managing all the risks to the bank while at the same time keeping the client happy in spite of the delay. For a change, the client was patient - the last thing you could hope for in a Bank. Finally at the end of a month's efforts he was able to crack the deal.
A huge party followed the night money was disbursed to the client. They were pioneers in the country so far as this transaction was concerned. For a Bank which was a mid sized player, this was a huge achievement. Steve stayed on till about 2 PM with friends and left for home in a taxi.
He was up early the next morning and reached office by about 9 AM. While he walked towards his desk on the third floor of the building, he received congratulations from all around -some familiar faces and some not so familiar. This was not his first success at the Bank. Ever since he joined the firm he stood out for his ability to get things done. He also enjoyed good visibility at the top rungs of leadership. He opened his mail box and was happy to see an invitation from Rafael - Director of the Debt desk to meet him in his corner office for lunch. This was the meeting he had been waiting for. He had been expecting a promotion and felt that the director would convey the good news today. His heart was filled with joy as he entered the director's office for lunch.
He had met the director only a few times before during company parties. But steve felt this was the beginning of a new chapter in his career. He shook hands with the boss man and sat opposite to him on the table. Rafael was a man of few words but was well-known for his shrewd mind and business acumen. He was believed to be the driving engine of the bank's growth.
Rafael spoke first - "Steve, I am a man who shoots straight from the heart. We have been watching you for the past few years and you haven't disappointed us. In more ways than one you have always performed beyond our expectations.But there comes a time when we have to decide if an employee is ready for the next big step and I am not being metaphorical here.."
Steve's heart started beating faster. The director's calm voice seems to create a soothing feeling on his mind. At that moment, if he said he could be happier in life, he would probably be lying. Finally the end was in sight.
Rafael continued - " Now before we shoulder you with the big responsibility, we want you to handle one more important responsibility. The knack with which you were able to close the Bernstein transaction leaves me with no doubt that this should be a cake walk for you. Get in touch with Robert and be assured you are on your way to be a future leader of this bank"
Coming from someone like Rafael, this was a huge compliment. Steve knew that Rafael wouldn't hand him something if he did not believe in his capabilities. He immediately spoke to Robert and asked him to forward all emails pertaining to the transaction.
The first week was spent following up with different stakeholders trying to understand the transaction. All the while steve could almost feel an undercurrent from whoever he interacted with. There was a sense of anxiety which people went great lengths not to show. Key people who had worked on this transaction had already moved onto different banks. Most of the knowledge he could gather was from different email dumps he received from Robert who himself did not know much about the transaction.
Two weeks into the Task...
Finding it difficult to make progress on the transaction, he got in touch with Arnold who was the VP who was instrumental in executing this transaction. Arnold had recently joined an investment bank in CBD (Central Business District). He was initially reluctant to meet but steve's powers of persuasion prevailed over him. They met in the chinese restaurant along the bay. When steve questioned him about the transaction, Arnold was mostly evasive in his replies. It seemed that he was not comfortable discussing anything related to the deal. But inadvertently, Arnold let out that the deal was mired in some legal tangle. This heightened steve's fears.
Steve went back and looked through all the documentation to see if the legal team had indeed approved of the transaction.His follow ups did not yield any positive new. Meanwhile he received a email from the internal audit team informing him that the central bank would like to audit the deal. Steve started putting the pieces together. One leg of the transaction which was a Letter of credit was funded by the client but never executed. The fee collected simply could not be traced. He did a quick check on similar transactions and all of them eerily followed the same pattern. The money was siphoned off. It was just not about the money. Any leak of this to the press and He could almost see the next day's headlines - "Bank dupes customer - Financial scandal of the decade". The regulator would immediately get into action and could lead to severe penalties or even cancelling of the Bank's licence.
The Final Nail in the Coffin..
Steve knew he had to act and act fast. He tried explaining things to his manager but he didn't seem to pay much attention. He was deliberately ignoring him. All his efforts to reach Rafael failed. He had gone on a vacation to Tahiti Islands and couldn't be reached for the next one month. He reached out to the company's Legal Head - Bob. Bob had been a bank's veteran. Aged closed to 55 he always joked about setting up a restaurant once he retired. But it was difficult to get an appointment from him. His previous interactions with Bob had helped him gain his trust. He rang Bob - " Bob there is a transaction that I need to urgently discuss with you and I need at least an hour..".
Bob was surprised. He wouldn't even grant the company's CEO an interview for one hour and this young kid was asking him for a hour. After a moment's pause he said - " Look kid..I would really like to help you but don't think i can meet you this week..". Steve knew he had to make an impact on Bob. He said - " Bob my only job for today is to talk to you. I want to discuss in particular about a transaction where some legal sign offs are missing!!"
There was silence at the other end. He knew he had made the right noise. Bob said - " 3 PM kid and you have half an hour". Steve met Bob at the appointed hour and took him through the transaction details. Bob listened patiently and finally said - " In sharing these details you have brought up a very serious issue but you also need to understand that there is a larger responsibility that you owe to the bank. You need to become a whistleblower.."
Ah.. how steve wished that Bob hadn't said that. He was hoping Bob would take the lead and ensure that everything was set right. But it wasn't to be. Being a whistle-blower was something that wasn't an easy thing to do in the world of finance. Word always leaked out on the employee who went against the system. The inquiry that follows is a long drawn process and usually the bank covers up its mistakes and victimizes the whistleblower. Only occasionally does the real culprit get punished. But for the whistleblower it was a slow death to his career.
Time to bite the bullet...
The conversation with Bob had shook him off completely. He decided to take the rest of the day off feigning illness. It was a friday and that offered him two days to make up his mind. Did he wish to be a hero and put his career on line? How he wished if he could turn it all back and wish he was never a part of this. His best instincts told him not to go ahead with this. He could always go on an unplanned vacation and come back after things were sorted out. But his morality didn't agree to that. He was caught between the rock and a hard place. For the next 48 hours, he kept thinking if there was a middle way where he need not be the martyr and yet save the bank.
Answers eluded him. Finally his conscience won over his ambition. He met Bob Monday morning and told him he was ready to do the right thing.
Epilogue:
Today marks Ten years to the incident. Steve is 42 years old. He no longer works in finance. The long drawn inquiry did not punish the guilty but it took corrective measures to protect the bank's interests. Steve moved out of the bank in disgust but he had already been branded a traitor. Word spreads quickly in banking circles and he became notorious as a trouble maker. Finding it tough to find a footing in the banking industry, he slowly moved onto smaller jobs in other sectors.
Now he works as a Purchasing manager for a mid sized conglomerate. His career hadn't exactly rocketed as he had hoped for but his clear conscience ensures that he stays happy. In the end isn't that what really matters!!
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