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The Head of Enforcement and Financial Crime at the FCA, Tracey McDermott pulled no punches last night when she spoke at a National Economic Research Associates seminar. Calling on the banks to do more than “talk the talk” Tracey McDermott said that there are still too many individuals within banks who refuse to take responsibility, instead passing the buck with a “not my job guv – we aren’t regulators” attitude.
Cultures such as those which put profit before ethics have lead to the public view that banks “behave like brutal muggers” and that the regulator “frogmarches” banks into providing redress. The result is a lack of trust in the industry which “represents the greatest challenge both to the industry and the regulator.”
Calling on banks to embed cultural values into their businesses, Tracey McDermott said that “Unless we see an extended period of firms walking the walk as well as talking the talk, trust will not be regained, and we will all – industry, regulators and most importantly consumers – be worse off as a result.”