Panel Discussion: Challenges and Opportunities in Reforming Bank Culture (LSE, November 21st)
November 8, 2013
Bank culture has featured prominently in the debate on financial reform. Culture, including values and beliefs, was at the center of the infamous “Muppets memo” penned by the resigning Goldman Sachs banker. Culture is the focus of the promises made by politicians and regulators to fix, once and for all, the City and Wall Street. And culture received a full chapter in the recent Salz Review of the problems at Barclays that led to the LIBOR scandal.
If one listens carefully, however, one can hear politicans doing the same verbal trick. Having denounced bank culture, they promise to remedy bank structure. E.g., separate (or, more creatively, “ring-fence“) investment and retail banking. Banish prop trading. And so on. This is not unreasonable, as the structure is really what regulators can intervene on. But years of organizational theory suggest that enduring change in organizations is impossible simply through formal measures — that is, in the absence of cultural change. As recent press reports have shown, cultural change is now very much taking place in seminars and value statement-writing sessions in the City. Canary Wharf appears to be teeming with PowerPoint-ready culture consultants.
Given this, I am organizing a panel discussion on bank culture (together with Nina Andreeva and Jean Pierre Zigrand). What are the promises of cultural reforms? What are the challenges? How does culture interact with structure? To this discussion, I invited a banker from Goldman, another from a top bank, a bank consultant in cultural change, and a prominent bank blogger from The Guardian. And I plan to combine them with regulators and academics: with Mike Power, an officer at the FCA, Nina Andreeva, and myself.
All in all, there will be two panels of four people. Each speaker will have about five minutes (vigorously enforced by the moderators). There will be 30 minutes of Q&A after each panel. And then drinks and nibbles. The event will take place at the spanking new LSE Systemic Risk Centre on November 21st from 4.00 onwards. It is free and open to the public, but registration is necessary. Please write to firstname.lastname@example.org