Fed's Dudley Says Wells Fargo Shows Bank Culture Needs Improving
- ‘There was a serious mismatch’ between values and incentives
- Dudley didn’t discuss the rate outlook in his prepared remarks
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The scandal involving Wells Fargo & Co. that surfaced last year shows the U.S. banking industry still has work to do on improving its culture, Federal Reserve Bank of New York President William Dudley said.
“Like mortgage brokers in the early 2000s, it appears that job security depended almost exclusively on meeting targets, regardless of how those targets were met,” Dudley said Tuesday in remarks prepared for a speech in London. “There was a serious mismatch between the values Wells Fargo espoused and the incentives that Wells Fargo employed.”