Incoming Bank of England Governor Mark Carney, soon to be one of the most powerful central bankers on the planet, is pointing the finger at bankers for the general public’s lack of trust in the global financial industry. Oh, and you’re holding back the economic recovery too.
Carney, the current head of the Bank of Canada, suggests that regulatory changes won’t be nearly good enough to rebuild trust with the public. To advance the global economy, individual bankers need to make cultural, moral and behavioral changes, he said on Monday.
"Virtue cannot be regulated,” Carney told a group of business students in London, Ontario. “Ultimately this is a question of individual responsibility,"
The lack of public trust in banks – driven by individual lapses in judgment – has increased the cost of borrowing for non-financial companies in the U.S. and the European Union, he said, which in turn inhibits global economic growth.
Carney appeared particularly frustrated with those in the industry who are fighting against regulations like capital requirements and bonus caps. “Bankers need to participate actively in reform, not fight it,” he said.
Set to assume his new role this summer, Carney appears poised to be more aggressive than his predecessors, noting earlier this month that his job is to lead the “re-founding” of the central bank. Apparently that starts with the individual bankers.
Goldman Sachs is expected to make cuts to its equities and fixed-income trading businesses as soon as this week. The bank, which typically dismisses its weakest 5% of employees this time of year, may make deeper cuts this round due to weaker trading volumes.
The $5 billion lawsuit filed against Standard & Poor's has gotten personal. The Justice Department identified five current S&P executives – along with 17 unnamed employees – who allegedly contributed to weakened credit rating standards.
Four directors at beleaguered boutique investment bank Gleacher will not stand for re-election after the firm’s biggest outside shareholder said it would oppose them. Twenty traders recently walked away from Gleacher after it failed to find a merger partner.
Meet the J.P. Morgan Residential Internship, a program aimed at giving students from low-income backgrounds opportunities to find a footing in finance.
The majority of hedge funds had a mediocre 2013, booking returns that failed to impress most investors. The good news – if you can call it that – is the resulting lowered expectations of clients. Only 32% of investors are targeting a double-digit return in 2013, down from 52% last year.
Want to be a junior broker at John Thomas Financial Inc.? Get ready to chug Red Bull, pound out hundreds of cold calls a day and work 14-hour days…standing on your feet.
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