NY Fed

Your Permanent Record: Blacklist for ethics gaining steam

Bad ethics should not be forgotten in the new year- or any other- as bankers and regulators discussed creating an ethical blacklist for individuals working at regulated financial institutions, at the NY Federal Reserve‘s recent culture conference.

This signals new enthusiasm for a provocative proposal originally suggested in 2014 by Bill Dudley, President of the NY Fed: When an employee leaves a company, the organization would have a mandate to report information relating to his/her misconduct to a central database. Concerning hiring decisions, all firms would have a reciprocal duty to check the database against their potential hire list. The goal is to stem the tide of bad apples that bounce from firm-to-firm, negatively influencing stability, profits and planning.

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