Fines continue - suggesting further cultural changes required for global banks

The Sunday Times has run a piece today on fines plaguing global banks, this time linked to rigging FX markets. The article, penned by Aimee Donnellan, points out that this time, the bad behaviour continued well beyond the start of the credit crisis, in fact until 2013, when banks were already believed to have been reformed and subject to further cultural change.  

A banking partner at KPMG puts it succinctly: "Each time a bank is fined, it adds another layer of mis-trust", underscoring issues facing policy makers and well positioned within the new institutional theory of governance (Dimaggio and Powell, 1987) which highlights the role of public opinion and regulation in corporate governance theory.  UK banks are expected to be fined this week almost £3 billion, raising serious issues for future governance norms. Fines paid by UK banks over the past 5years amount to nearly £40 billion, or over half their profits for the period, according to the author.  For more information, check out: http://www.thesundaytimes.co.uk/sto/business/Finance/article1553980.ece.  

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