Something Is Dangerously Wrong at the New York Fed | Armstrong Economics.
In a speech this week, New York Federal Reserve Board President William Dudley addressed pervasive misconduct within the financial industry, refusing to dismissively lay the blame on a few bad apples. “The problems originate from the culture of the firms, and this culture is largely shaped by the firms’ leadership,” Dudley said.
He offered some interesting suggestions on industry compensation practices, but his main message was a warning: If nothing changed, regulators would have to conclude that large
financial institutions are too big to manage, and “that your firms need to be dramatically downsized and simplified so they can be managed effectively.”
Related: Are Regulators About to Let Another Bank Get Too
Big to Fail?
These were notable words from someone in the actual position to undertake a big bank breakup. But Dudley added a little caveat, as typical for such speeches: “What I have to say today reflects my own views and not necessarily those of the Federal Reserve System.” He would have to say that, because the organization he runs hasn’t practiced what he preached.
…click on the above link to read the rest of the article…
