James Hennessy, Senior Vice President

Today we continue a conversation at the New York Fed on reforming culture and behavior in the financial services industry. The theme of today’s conference is “Expanding the Dialogue,” and we’re applying that theme in a number of ways:

Thomas H. Glocer, Former Chief Executive Officer, Thomson Reuters and Director and Chairman, Operations and Technology Committee, Morgan Stanley

This is being published from the New York Fed by a guest writer as part of Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue. The views of the author are his own and are offered by the New York Fed to contribute to discussions on this topic.

Bill Schaninger, Director, McKinsey & Company

This is being published from the New York Fed by a guest writer as part of Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue. The views of the author are his own and are offered by the New York Fed to contribute to discussions on this topic.

Stuart Mackintosh, Executive Director, Group of Thirty

This is being published from the New York Fed by a guest writer as part of Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue. The views of the author are his own and are offered by the New York Fed to contribute to discussions on this topic.

Kevin Stiroh, Head of Supervision

October 20, 2016, will mark three years since the Federal Reserve Bank of New York hosted its first conference on Reforming Culture and Behavior in the Financial Services Industry. While we have seen varied progress across the industry in addressing the issue, the persistence of misconduct and unacceptable behavior continues to raise serious questions for supervisors of financial institutions.

David Walker, Chairman, Winton Group

This is being published from the New York Fed by a guest writer as part of Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue. The views of the author are his own and are offered by the New York Fed to contribute to discussions on this topic.

Maureen O’Hara, Robert W. Purcell Professor of Finance, Johnson Graduate School of Management, Cornell University

This is being published from the New York Fed by a guest writer as part of Reforming Culture and Behavior in the Financial Services Industry: Expanding the Dialogue. The views of the author are her own and are offered by the New York Fed to contribute to discussions on this topic.

William C. Dudley, President

Reforming the culture of banking is necessary to support the long-term health of our financial system. Without good culture shaped by appropriate incentives, we can’t have the consistent good conduct we should expect and deserve. We cannot continue on the present course. We know this, the public knows this and so do many in the industry. Continuing instances of misconduct highlight the need for attention to this issue and raise the question of whether the largest firms are “too big to manage.” I remain convinced, however, that when the will is there, meaningful improvement is possible.