As Regulators Focus on Culture, Wall Street Struggles to Define It • © [wsj.com]
… Senior officials with the Federal Reserve and other agencies in recent weeks have made it clear that they believe bad behavior at banks goes deeper than a few bad apples and are advising firms to track warning signs of excessive risk taking and other cultural breakdowns. Still, even regulators acknowledge culture is a difficult thing to measure.
“I confess that proof is hard to come by,” said Thomas Baxter, general counsel of the Federal Reserve Bank of New York, in a speech last month. “Yet I am not alone in the fundamental belief that a strong ethical culture will lead to better behavior.”