This time last year we all hoped that we might be turning the corner of the economic crisis, perhaps contemplating a lean Christmas, but awaiting the return to form that we all expected 2009 to bring. In hindsight, such optimism was misplaced, and I include myself amongst the misguided. I take comfort from the fact that people far wiser and better placed were similarly mis-footed. Consequently, being on DLA Piper's table at Thursday's Institute of Financial Services Dinner (aka the Institute of Banker's Dinner) at the BT Convention Centre made for an interesting evening.
As a solicitor, being thick skinned is part of the day job, we know our place in the public's perception - slightly more sexy than accountants, somewhere above estate agents and ultimately empathetic with the Millwall refrain about being unloved. It was interesting, therefore, to hear some of the comments made during the speeches on Thursday night. Clearly, no-one would be so blindly optimistic to make no mention of current circumstances but I was reminded at times of those long-since forgotten chats by the Headmaster (the disappointment, the could-do-betters...). If I was hearing right (...and some wine had, by this point, been imbibed...), the suggestions of guilt and responsibility that ought be borne by the banking community were in my view, a little harsh. Whilst bankers may not be flavour of the month, they are not, as a profession, public enemy number one, nor should they be.
Even leaving aside the fact that bankers come in all shapes and sizes, and ignoring the hedge fund mangers and certain City big-wigs who may garner less sympathy, the current failings are systemic and certainly not personal to those in the region that have done good business for many years. A growing pursuit of returns, coupled with poorly structured incentive schemes, and a failure to recognise or understand the risks of the certain structured products, appears to be the real problem. Whether you blame Government policy, regulation, capitalism, or simply human nature, there were no villains or naughty school boys in the room on Thursday (at least not until the after-dinner drinks....).