2. Puzzle «Proportionality»
According to GAM, Haywood was shoddy in his record-keeping and risk management. The fund manager also allegedly used his personal email for work and didn’t get gifts approved by the company beforehand.
Unless Haywood was accepting flagrantly expensive or even illegal perks, all of these trangeressions rank as misdemeanors in the financial services world, where a star manager such as Haywood would be likely to enjoy even more deferential treatment.
All would be handled internally, perhaps with stronger risk steering committee oversight, for example. An outside law firm would almost certainly not be summoned. Almost all would merely result in a slap on the wrist against a promise of improvement. So, how did we get here – gating, then liquidating billions in flagship funds, effectively imperiling the entire firm – instead?
