Fix bank culture or face being broken up, says US Fed Reserve
New York
BANKS must change the way employees are compensated and take other steps to fix a corporate culture that encourages misdeeds or face being broken up, said William Dudley, president of the Federal Reserve Bank of New York.
If bad behaviour persists, "the inevitable conclusion will be reached that your firms are too big and complex to manage effectively", he told industry leaders in a speech at the New York Fed. "In that case, financial stability concerns would dictate that your firms need to be dramatically downsized and simplified so they can be managed effectively."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say