The head of the Federal Reserve Bank of New York said Thursday that some of America’s largest financial institutions appear to lack respect for the law, a potentially explosive charge against an industry already roiling from numerous government investigations into alleged wrongdoing.
William Dudley, one of the nation’s top banking regulators whose organization helps oversee Wall Street banks including JPMorgan Chase and Citigroup, made the comment during a speech focused on the problems posed by banks perceived to be “too big to fail,” and possible solutions to correct them.
But in an abrupt turn, Dudley suggested that regulators may be stymied by "cultural" issues that have negatively affected the nation's biggest banks.
“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," he said.
“There is evidence of deep-seated cultural and ethical failures at many large financial institutions,” he 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.”Is Bill Dudley finally reading Bill Black?
The Huffington Post
New York Fed Chief Levels Explosive Charge Against Big Banks
Shahien Nasiripour
4 comments:
You can't legislate the actual compliance part... you need to staff with people who acknowledge authority... not a bunch of cowboys...
rsp,
"not a bunch of cowboys"
I'm not sure what a guy that rounds up cattle in a place like Montana or South Texas has to do with lawlessness and sociopaths in east coast finance centers. Cowboys are poor, blue collar workers, in a dying culture of animal husbandry. Factory feedlots financed by those other "cowboy financiers" and encouraged by the yahoos in Washington have ended the cowboy culture.
This is too late.
Obama should have Bill-Black'ed the banks 4 years ago
but Obama was soft.
And this is affecting his ratings and affecting his strategy since the Tea party is winning with their rebellion.
The Tea Party is a subset of cowboys who can distance themselves from Republicans when they do their special operations so the Republicans can stay "clean" and then merge back with the Republicans when it is "safe and sound" if their strategy worked.
It might be working, this approach.
It is not a genuine independent political party, it is a subcommittee so that Republicans can vote twice and differently on the same issue so they can say they voted "yes" to constituents #1 and that they voted "no" to constituents #2.
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