There have been several times in the last three decades when the ethical behavior of financial institutions has been the center of attention. The most recent concern is triggered by the behavior of non-financial institutions, starting with Enron.
Financial institutions are built on trust. Customers expect high ethical standards from their financial institutions. The Comptroller of the Currency has stressed that customer trust is a bank's most important asset. Most recently, Federal Reserve Board Governor Susan Bies delivered a strong message on corporate governance.
Bies chose ABA's National Regulatory Compliance Conference to deliver a strong message on compliance and corporate governance. The message began with the title: "Strengthening Compliance through Effective Corporate Governance." She set the tone of her message with references to Enron, Worldcom, and HealthSouth. Her question and challenge was: "what were the underlying deficiencies in the internal control processes of these companies that rendered their governance practices ineffective."
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