The president of the Federal Reserve Bank of New York, William Dudley, has reiterated his call for a database of banker misconduct that will “stop rolling bad apples”.
Speaking to open a New York Fed conference on culture and behaviour in financial services, Dudley, who was expressing his own views, observed that the evidence is pervasive that deep-seated cultural and ethical problems have plagued the financial services industry in recent years. He further hinted that the industry needs more than principles to reform conduct and that any guidelines need teeth.
The Federal Reserve Bank of New York has formally imposed a $1.2 million fine and a permanent ban on employment in the banking industry against former Barclays trader Chris Ashton, the former global head of FX spot trading at the bank.
The fine and ban is in connection with the manipulation of FX pricing benchmarks and was first announced last year.
The Fed now says that Ashton failed to answer, appear, or request a hearing in administrative law proceedings after the Board charged him with a string of offences.
The US appears to have settled upon a reference rate to replace the current London Interbank Offered Rate (Libor).
At a meeting last week, the Alternative Reference Rates Committee (ARRC) identified a broad Treasuries repo financing rate, which the Federal Reserve Bank of New York has proposed publishing in cooperation with the Office of Financial Research (OFR), as the rate that, in its consensus view, represents best practice for use in certain new US dollar derivatives and other financial contracts.
The Federal Reserve Bank of New York has released its Statement of Commitment to the FX Global Code.
Using the common language of these releases, the New York Fed says it has reviewed the content of the Code “and, in issuing this Statement of Commitment, has confirmed that it acts as a Market Participant as defined by the Code. The New York Fed is committed to conducting its foreign exchange market activities, when acting as a Market Participant, in a manner consistent with the principles of the Code.”
The Federal Reserve Bank of New York has taken the step of publishing a statement detailing how it handles confidential information from foreign exchange and Treasury market participants.
The New York Fed says it is committed to the use and handling of confidential information about participants in financial markets “in a manner that promotes the integrity and efficiency of these markets, and is consistent with goals of the Treasury Market Practices Group (TMPG) Best Practices and the FX Global Code”.