Misconduct and Systemic Risk

Source: WSJ City

The global financial system is subject to emerging vulnerabilities from misconduct by traders and bankers as well as from developments in financial technology, Mark Carney wrote in a letter to leaders of the Group of 20.

The Bank of England Governor — writing in his capacity as the chairman of the Financial Stability Board — said the FSB was pursuing a “major” work programme that would study both remuneration and the possibility of increasing individual accountability for bad behaviour.

“The incidence of financial sector misconduct has risen to a level that has the potential to create systemic risks by undermining trust in both financial institutions and markets.”
Mark Carney