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A question of competence at investment banks

On the one hand, banks say that errors were the result of operational failure or downright incompetence, but on the other, they insist we have faith in their ability to manage their own affairs

One of the many problems that investment banks face as they try to rebuild their credibility is what you might call the “paradox of competence”.

On the one hand, the banks' first line of defence when things go wrong is often to say that it was the result of operational failure or downright incompetence, rather than malicious intent or an ethical breakdown.

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