Being a fraud doesn't negate being a fool as well. You overestimate their intelligence by presuming the "result" is "what was intended." I reckon Rushi genuinely thinks banks make money through lending to businesses by taking calculated risks: That's what he wants to happen.
- That makes him a fool.
In reality banks make money by having a licence, loose it by gambling on Credit Default Swaps and make it back again through government bailout largesse.
Its not difficult to understand but it goes against what they believe about their precious capitalist system, so instead they operate in that world of make-believe and are genuinely surprised when it doesn't work...