Reforming Culture and Behavior in the Financial Services Industry:
Progress, Challenges, and the Next Generation of Leaders

This event built upon previous New York Fed conferences in 2014, 2015, and 2016 on reforming culture and behavior in the financial services industry. The program focused on assessing progress to date; exploring ongoing and new challenges; and preparing the next generation of leaders to continue driving cultural reform.

Key Themes

Here are the key themes discussed at the conference:

  • There is international consensus that culture is an important part of a firm’s sustained healthy performance. The industry and the official sector are increasingly collaborating across borders to promote higher standards for conduct and to address common cultural challenges.
  • The reputations of firms are as interconnected as their operations. The industry must work together to address culture, as a problem at one firm affects its peers.
  • Firms should avoid becoming complacent about banking culture and conduct as broader economic conditions improve.
  • Organizations must assess and reform their incentive structures (including compensation, career advancement, and other forms of recognition) to align with values, business strategy, and customer interests.
  • Senior leaders—boards and executives—can use a variety of methods to assess their cultures and subcultures. Supervisors and regulators can offer feedback on culture and conduct that combines independence with broad knowledge of industry practices. Boards in particular may find this input helpful.
  • Supervisors in many jurisdictions are exploring how to incorporate cultural and conduct assessment into their work, although their approaches vary. Some assess culture under a prudential supervision mandate, others under a conduct mandate, and others through integration into more traditional concerns about safety and soundness, risk management, and financial stability.
  • As the financial crisis fades from institutional memory, it will be increasingly important for firms to impart lessons learned from the brink to the next generation of cultural leaders. Firms can partner with universities to develop training programs that emphasize sound ethical judgment alongside technical proficiency.

Download the full summary.

Event Details
Date and Time
Monday, June 18, 2018
8:30 a.m. - 5:00 p.m.
Location
Federal Reserve Bank of New York
33 Liberty Street, New York, N.Y.
Audience
By invitation only.
Download the attendee list .
Contact
Please address any questions to NY.FRB.Culture.Events@ny.frb.org.
Agenda
8:30am-
8:35am
Welcome

James Hennessy, Senior Vice President, Federal Reserve Bank of New York
8:35am-
9:00am
Opening Remarks

Read Bill Dudley's insights on Medium.

Bill Dudley, Former President and CEO, Federal Reserve Bank of New York | Remarks
9:00am-9:50am Panel One: Finance, Culture and Society

Moderator:
Gillian Tett, U.S. Managing Editor, Financial Times

Panelists:
Bill Dudley, Former President and CEO, Federal Reserve Bank of New York
Betsy Duke, Chair, Wells Fargo & Company
James Gorman, Chairman and CEO, Morgan Stanley
9:50am-10:10am Break
10:10am-10:45am Presentation: New Banking Standards Board Survey

Read Alison Cottrell's insights on Medium.

Dame Colette Bowe, Chairman, Banking Standards Board (U.K.)
Alison Cottrell, Chief Executive Officer, Banking Standards Board (U.K.)
Mikael Down, Director of Policy and Analysis, Banking Standards Board (U.K.)
10:45am-10:55am Panel Introduction

Bill Rhodes, President and CEO, William R. Rhodes Global Advisors |
Remarks
10:55am-11:45am Panel Two: New G30 Report on Banking Conduct and Culture

Read Stuart Mackintosh's insights on Medium.

Moderator:
Stuart Mackintosh, Executive Director, Group of Thirty

Panelists:
Cathy Bessant, Chief Operations and Technology Officer, Bank of America
Michael Corbat, CEO, Citigroup
Roger W. Ferguson, Jr., President and CEO, TIAA
Gail Kelly, Senior Global Advisor to UBS and former CEO, Westpac Banking Corporation
11:45am-12:05pm Keynote

The Hon. Jay Clayton, Chairman, U.S. Securities and Exchange Commission | Remarks
12:05pm-1:15pm Lunch (Liberty Room)
1:15pm-1:40pm Presentation: Auditing Culture

Read Elizabeth Arzadon's insights on Medium.

Elizabeth Arzadon, Fmr. Special Advisor, Australian Prudential Regulation Authority
1:40pm-2:30pm Panel Three: International Supervisory Approaches

Read Kevin Stiroh's insights on Medium.

Moderator:
Kevin Stiroh, Executive Vice President and Head of the Supervision Group, Federal Reserve Bank of New York

Panelists:
Norman Chan, Chief Executive, Hong Kong Monetary Authority
Jonathan Davidson, Director of Supervision, Financial Conduct Authority (U.K.)
Jeremy Rudin, Superintendent of Financial Institutions, Office of Superintendent of Financial Institutions (Canada)
Willemieke van Gorkum, Head of Division of Horizontal Functions and Integrity Supervision, De Nederlandsche Bank
2:30pm-2:50pm Break
2:50pm-3:00pm Panel Introduction

Richard Lyons, Dean, Haas School of Business, University of California, Berkeley | Remarks
3:00pm-3:45pm Panel Four: Strengthening Business School and Industry Partnerships

Read Will Bousquette and Scott DeRue's insights on Medium.

Moderator:
Michael Strine, First Vice President and COO, Federal Reserve Bank of New York

Panelists:
Will Bousquette, Chief Operating Officer of the Investment Banking Division, Goldman Sachs
Scott DeRue, Dean, Ross School of Business, University of Michigan
Jonathan Harvey, Managing Director and Global Head of Talent and Culture, Barclays
Lynn Paine, Senior Associate Dean for International Development and Professor of Business Administration, Harvard Business School
3:45pm-4:00pm Concluding Remarks

Read Sir David Walker's insights on Medium.

Sir David Walker, Chairman, Winton Capital | Remarks
4:00pm-4:10pm Concluding Remarks

John Williams, President and CEO, Federal Reserve Bank of New York | Remarks
4:30pm Reception

Download the agenda

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