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Fixing A Bankrupt Banking Culture By Hiring More Bankers?

The Group of 30 published a report titled BANKING CONDUCT and CULTURE: A Call for Sustained and Comprehensive Reform last month (July 2015). This report, co-written by both academics and senior financial industry regulators and banking executives, pulls no punches in its critique of the morally bankrupt global banking industry and the pressing need for across-the-board reforms in the sector in order to restore public trust.

The foreword of the report notes: "Banks and banking today stand in disrepute. Poor cultural foundations and significant cultural failures were major drivers of the recent financial crisis, and continue to be factors in the scandals since then, exacerbated by staff with questionable conduct and values who move from bank to bank with impunity. Unhealthy cultural norms, or subcultures within large banks, including in some cases criminal behavior, have hurt the public, caused reputational damage and loss of public trust, and have been financially costly in terms of fines, litigation, and regulatory action; economically costly to society at large; and have been a major distraction for both senior management and boards. Banking is, in 2015, at a...