VALUE: After Hours (S07 E13): Fiduciary Failures and the Problem with Finance

During their recent episode, Taylor, Carlisle, and Barry Ritholz discussed Fiduciary Failures and the Problem with Finance.. Here’s an excerpt from the episode:

Barry: -hundreds of million– Right. [Tobias laughs] We will do it for a twentieth of it and we’ll be thrilled to death to have them as clients. So, essentially, Bloomberg really took care to say, there are no allegations of wrongdoing. Okay, so there might not be technical allegations of wrongdoing. But if you have a $15 billion client and you’ve somehow managed to squeeze a billion dollars in fees times two, I think it’s safe to say that you’re probably not a fiduciary, that you’re probably not working in the best interests of the clients. This is what’s always astonished me about finance, in general.

Look, your lawyer has an obligation to zealously represent you and put your interest first. As does your accountant. Your doctor takes a Hippocratic oath, “First thing above all else is do no harm.” But why is it that people think it’s okay that your relationship with the person managing your family’s wealth, your retirement money, the money you’re saving for your kid’s college, that relationship is the same as the guy trying to sell you a used Honda Accord? That makes no sense in the world.

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