USA TODAY COLUMN: When America’s second-most important central banker talks about an “apparent lack of respect for law” in our big banks, you know you’ve got a serious problem…
“Perhaps this is correct,” [the president of the New York Federal Reserve Bank, William] Dudley said at the Global Economic Policy Forum at New York University. “After all, collectively these enhancements to our current regime may not solve another important problem evident within some large financial institutions — the apparent lack of respect for law, regulation and the public trust.”…
“There is evidence of deep-seated cultural and ethical failures at many large financial institutions,” Dudley continued. “Whether this is due to size and complexity, bad incentives or some other issues is difficult to judge, but it is another critical problem that needs to be addressed.” … (more)
