Regulators Continue to Underscore Culture

November 1st, 2016

Daily Issue Briefing

Date:  Friday, October 21, 2016

Subject:  Regulators Continue to Underscore Culture

Summary Analysis: 

Echoing the sentiments of financial regulators in the United Kingdom, the Federal Reserve Bank of New York continues to emphasize the importance of good culture in banking. This week the regional Fed bank convened the third installment in a series of conferences, entitled Reforming Culture and Behavior in the Financial Services Industry:  Expanding the Dialogue.

President and Chief Executive Officer William Dudley delivered critical opening remarks, pointing to a disappointing track record. He said, “The evidence is pervasive that deep-seated cultural and ethical problems have plagued the financial services industry in recent years.  This has eroded the industry’s trustworthiness.”  With the Department of Justice increasingly focused on individual accountability, Dudley said “incentives and clear accountability” were the best means to improving culture.  The New York Fed has also proposed a baseline assessment of culture and well as new regulations.

Resources:

Dudley’s Remarks:  https://www.newyorkfed.org/newsevents/speeches/2016/dud161020

 

Press:

http://money.cnn.com/2016/10/20/news/economy/new-york-fed-dudley-bank-culture-eroded/

http://www.americanbanker.com/news/law-regulation/ethics-problems-have-eroded-trust-in-banking-feds-dudley-1092017-1.html