Changing culture

The government wanted to change the cultures at the big banks. Enter Dodd Frank.

“Nuns With Guns: The Strange Day-to-Day Struggles Between Bankers and Regulators,” The Wall Street Journal, May 31, 2016 A1.  The raft of new regulations has resulted in a vast expansion of the staff functions involved in training internal employees on what the regs require. Over $70 billion in compliance costs at the six largest banks. 43,000 staff to oversee and enforce “‘controls'” at J.P. Morgan.

How do small players survive?  Is a training slide showing the inhouse compliance people dressed as nuns with guns sending the right message?

The government forces change by adding regs and enforcing them. A corporation forces change by enacting policies, training employees, and monitoring what the employees actually do.

Leave a comment

Filed under Board, Compliance, Compliance, Compliance Verification, Controls, Culture, Culture, Directors, Duty, Employees, Governance, Internal controls, Legal, Oversight, Oversight, Policy, Requirements, Third parties

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s