There are two new resources on the Governance and Culture Reform site of the Federal Reserve Bank of NY that highlight the regulatory trends with respect to managing culture in financial services firms.
The first is a transcript from an event at Thomson Reuters on February 7, 2018, which was a moderated discussion among Bill Dudley (President of the NY Fed), Bill Rhodes (WR Rhodes Global Advisors), and Ellen Alemany (Chairwoman and CEO of CIT Group), moderated by Rob Cox (Reuters News). The panelists covered a wide array of matters relating to the topic of Banking Culture: Still room for reform?
Dudley highlighted that while some progress has been made, there’s still much room for improvement. For example, the NY Fed has proposed a banking registry to keep track of whether employees have left their jobs for reasons of fraud or other misconduct. This would address the so called “rolling bad apples” problem, whereby companies may inadvertently hire a rogue employee of another firm because employment law discourages employers from sharing potentially derogatory information about former employees. He mentions that the U.K. has perhaps made more progress on this matter, having already established a similar registry.