Try to relax...
Bank of England Governor Mark Carney was born in the Northwest Territories and grew up in Alberta before joining Goldman Sachs and becoming a central banker, so he knows a little more about cowboys—City or otherwise—than most people at last night’s Mansion House dinner in London. And he knows that the only way to deal with such people is roughly. So here’s how it’s gonna be from now on:
• Get caught manipulating markets? 10 years in jail;
• “Manipulating markets,” by the way, will now mean more than just manipulating LIBOR;
• All previous naughtiness to be disclosed to new employers by former employers;
• Tongue-lashings all around:
Mr Carney said the new rules were required ‘to reverse the tide of ethical drift’ that had left the industry’s ‘social licence’ in question in recent years. ‘Unethical behaviour went unchecked, proliferated and eventually became the norm,’ he told the annual Mansion House dinner in London. Mr Carney said ‘a culture of impunity’ developed in the financial markets and pay and bonuses were skewed in favour of ‘short-term returns over long-term value and good conduct’….
‘For the best in the industry, this won’t be new – this is how you run your business,’ Mr Carney said. ‘But for others, who free-ride on your reputations, the age of irresponsibility is over.’