The Federal Reserve Bank of New York hosted a conference in October that looked at reforming culture and behavior in the financial services industry. In his opening remarks, New York Fed President William C. Dudley stated that culture is at the heart of industry problems that have eroded its trustworthiness.
“The evidence is pervasive that deep-seated cultural and ethical problems have plagued the financial services industry in recent years,” Dudley said. “Bad conduct has occurred in both investment banking and securities market activities, as well as retail banking.”
It’s hard to argue with history. From Barclay’s Libor scandal to Countrywide Financial’s discriminatory lending practices to Wells Fargo’s more recent woes, financial services has produced high-profile scandals on a seemingly routine basis.…