A central database for naughty bankers ?
Bankers’ misdeeds would be catalogued, by name, on a private registry for hiring managers under a proposal that’s gaining traction as Wall Street firms struggle to restore reputations damaged by the financial crisis and the Libor and foreign-exchange scandals.
Bloomberg News reports that when traders or bankers leave a firm, any instances in which they’ve violated the firm’s ethics or conduct rules would be listed on a central database, allowing prospective employers to see their records before deciding whether to hire them.
The concept, promoted by Federal Reserve Bank of New York President William Dudley following a similar plan in the U.K., is aimed at stopping offenders from moving easily between banks.
'We can see a fair number of people who have been bad actors who have recirculated at institutions and created havoc wherever they have gone', said H. Rodgin Cohen, who has represented many of the largest U.S. banks as senior chairman of Sullivan & Cromwell LLP. The main problem is employees who have been dismissed or covered their tracks by going to another firm 'one step ahead of dismissal', he said.
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