Federal Reserve Bank of New York ("NY Fed") Executive Vice President Alberto G. Musalem outlined NY Fed initiatives to promote a positive banking culture. Mr. Musalem explained that the initiatives are a response to recent incidents of misconduct, including a case involving the manipulation of LIBOR. He also stressed that the "responsibility to address these flaws" in the "culture of banking . . . rests with the banks themselves." Mr. Musalem described the NY Fed's message to the banking industry as follows: (i) cultural problems are the banking industry's responsibility to solve, (ii) a bank
The Federal Financial Institutions Examination Council ("FFIEC") provided new guidance in the form of a booklet titled Management. The guidance is intended to assist examiners in their evaluations of information technology ("IT") governance at financial institutions and service providers. The revised booklet is part of the FFIEC Information Technology Examination Handbook. The FFIEC Management booklet includes examination procedures and has been revised substantially. It outlines the principles of sound governance, specifically, IT governance. It also explains how IT risk management relates to
A new FDIC publication on corporate governance focuses on key concepts, the roles and responsibilities of directors and senior management, and how FDIC examiners evaluate governance at community banks.
In an article published in the Federal Reserve Bank of New York Economic Policy Review, economists examined the "role of financial reporting in resolving agency conflicts among a firm’s managers, directors, and capital providers."
The Board of Governors of the Federal Reserve System voted to broaden the scope of post-employment restrictions applicable to Federal Reserve Bank senior examiners and officers.