Has it occurred to you that personally punishing employees would just create further incentive to hide errors? You just create a culture of fear, where any attempt to acknowledge mistakes and learn from them is punished rather than rewarded.
I have no idea why you think inflicting financial penalties on employees would result in better outcomes. You only need to look at some highly avoidable transit disasters in Japan to understand why a model of punishment produces worse outcomes, not better.
There is a reason we have regulators (or at least we do in the UK). I can assure you that if this had happened in the UK, and the complaint raised to the Financial Ombudsman (FOS), there would have been hefty financial punishment for the bank. If there were repeated infractions, the FCA would step in to investigate, and possibly personally punish C-suite leaders for failing to build the needed processes and culture to both prevent, and learn from mistakes like this.
And I’m not speaking about theory, I’m speaking from personal experience. I know exactly what it’s like to be on the pointy end of both the FOS and FCAs gaze. It’s not a comfortable position for any team in any bank, and even less comfortable for senior leaders.
I have no idea why you think inflicting financial penalties on employees would result in better outcomes. You only need to look at some highly avoidable transit disasters in Japan to understand why a model of punishment produces worse outcomes, not better.
https://en.m.wikipedia.org/wiki/Amagasaki_derailment
There is a reason we have regulators (or at least we do in the UK). I can assure you that if this had happened in the UK, and the complaint raised to the Financial Ombudsman (FOS), there would have been hefty financial punishment for the bank. If there were repeated infractions, the FCA would step in to investigate, and possibly personally punish C-suite leaders for failing to build the needed processes and culture to both prevent, and learn from mistakes like this.
And I’m not speaking about theory, I’m speaking from personal experience. I know exactly what it’s like to be on the pointy end of both the FOS and FCAs gaze. It’s not a comfortable position for any team in any bank, and even less comfortable for senior leaders.