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There’s no public data to relay, but something must be available to convince the New York branch of the Federal Reserve to call a meeting of the world’s biggest banks to tell them they have to change. The Fed’s worry is that the culture that led to the previous financial crisis hasn’t changed, and has possibly worsened.

“23 percent reported personally observing or having firsthand knowledge of misdeeds. That number jumps to 34 percent when looking only at those earning more than $500,000” – The Atlantic

Considering that the report came out in May, and this meeting in November was considered necessary, it is reasonable to assume that not enough, if anything, has changed. The Fed also pointed out that public opinion is much more strongly against the banks. If another crisis were to occur, the public reaction and the government action will probably be much different. The meeting was an opportunity to improve the situation from the top down. Optimists will emphasize the power of responsible leadership. Pessimists will emphasize the lack of change in an entrenched culture.

(Click on the photo for the link.)

“NY Fed To Banks: Clean Up Wall Street” – The Atlantic

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One thought on “Fed Warns Banks

  1. Pingback: Global Debt Increases | Pretending Not To Panic

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