I don't think the problem is with the financial industry. The issue is most definitely with the financial/political system. We haven't run true capitalism in the Western nations for decades. It has been a hodge-podge of crony capitalism mixed with token dribs of 'social democracy' championed by wealthy political elites that no more understand the life of eg a bus driver than a tea leaf understands the history of the East India Company.
Take the Libor scandal. Would this have happened if the banks had not been repeatedly bailed out - 'too big to fail' - giving traders the impression that they worked in a politically-sanctioned realm where the normal rules of capital did not apply? There is no danger of your company going bankrupt through loss of reputation or massive, penal fines for criminal behaviour if you have an unconditional sovereign back stop.
Take the Libor scandal. Would this have happened if the banks had not been repeatedly bailed out - 'too big to fail' - giving traders the impression that they worked in a politically-sanctioned realm where the normal rules of capital did not apply? There is no danger of your company going bankrupt through loss of reputation or massive, penal fines for criminal behaviour if you have an unconditional sovereign back stop.