Wall St. wins Capt Obvious award

[pauldun170]

Originally Posted by goof2

There are two problems I'm aware of off the top of my head with that system.

First, large organizations get scared of loosing oversight when it ultimately comes down to two people at a desk. The worry is that their representative at the desk is going to make a stupid decision the organization is ultimately responsible for. As it turned out the organization was making stupid decisions anyway, but that still doesn't change the fact that an organization is going to want to depend on its own judgment rather than that of one of their individuals.

Your looking at it wrong.
The person at the desk is the entry point..not the whole system.

Originally Posted by goof2

Second, without a demonstrable system that removes judgment from individuals an organization opens itself up to discrimination suits. That system gives the organization something to point to showing that the standards are the same for everyone, regardless of race, color, or creed. I'm sure you are aware that lenders get sued all the time for discrimination. Their race, gender, and creed neutral systems function as a defense. Once the system becomes the mind of an individual that defense is lost.

Absolutely correct.
Financial institutions have to be able to report that they are complying with state and federal laws. However that doesn't deny the institutions to ability to mitigate risk. The key thing is documentation.