"Can finance be effectively governed? A spectrum of views from networks of elites to regulation from below"
Thursday April 11, 2019; 11:00 am - 12:30 pm | Washington, D.C., IMF HQ2
The 2008 financial crisis revealed serious issues in the governance of banks and financial firms, as regulators confronted widespread misconduct and a lack of internal risk management. In response, regulators focused on reforming the top-down corporate governance framework operating through boards of directors, which are supposed to play a leadership role in creating and promoting the necessary culture and values to reinforce standards of ethical behavior. Not surprisingly, these efforts met with significant resistance from banks. But banks don’t exist in a cultural vacuum. With leverage ratios again rising and misconduct – such as Wells Fargo’s creation of fake customer accounts or Deutsche Bank’s investigation for money laundering – seemingly rampant, this panel discussion asks, “Can finance be effectively governed?” Inputs include a spectrum of views: on networks of elites who pull the levers of our global financial system to whistleblowers and front-line bank workers who want to assist with “regulation from below”.