Clutch Continues to Weigh in on Cultural Practices at Big Banks
On Monday, February 16, Financial News published an article entitled “A US perspective on conduct risk in finance” in which Clutch’s President Brandon Daniels highlighted the differences between US and UK banks’ view on corporate culture and ethics.
The article reads “Daniels at Clutch said he had observed a difference between the way financial firms in Europe and the US addressed conduct risk. He said: ‘European-based organisations want to be very conservative and safeguard their wealth and retail businesses. Their number one priority is building back confidence so that the consumer base is not in jeopardy. It’s not a risk-weighted approach; it’s zero tolerance. Banks in the US, because they are so big and so siloed, it feels like what they’ve been doing is a lot more risk weighted.'”
On the front page of the Wall Street Journal, Clutch Group also weighed in on the growing emphasis on firm culture on Wall Street. The story reports on the countless regulators, including the Federal Reserve and the Office of the Comptroller of the Currency (OCC), that are shifting their regulatory, oversight and investigatory concentrations on culture such as “employee attitudes and values.”
As the Wall Street Journal cites, financial institutions are struggling to review and reform internal behavior to align with a relatively subjective measure. Consulting firms, including Clutch Group, are helping financial institutions meet the compliance demands associated with the new cultural focus. The Wall Street Journal writes, “The Clutch Group, which is consulting for two banks it wouldn’t name, found that informal happy hours led more often to harassment issues than those planned as corporate events, said Brandon Daniels, Clutch president. It also found that there was a 75% greater chance of employees going around internal controls when the word “workaround” was used in their communications.”