Wall Street has pledged to focus on a more ethical culture, but many say the biggest power players remain untamed. CCTV’s Shraysi Tandon filed this report from New York.
Wall Street still tempted by an unethical cultureWall Street has pledged to focus on a more ethical culture, but many say the biggest power players remain untamed.
- A report conducted by the University of Notre Dame for the law firm Labaton Sucharow, surveyed more than 1,200 financial professionals in the U.S. and U.K. Among executives earning more than $500,000 a year, around a third say they’ve witnessed or are aware of illegal activity at their firms. One in five believe bending ethical or legal rules is necessary to be successful in the industry.
- The report also indicates financial firms may actively try to silence potential whistle-blowers. One in ten finance employees say they have signed confidentiality agreements that they believe ban them from reporting illegal behavior to authorities.
- The U.S. Securities and Exchange Commission is working to encourage more whistle-blowers to come forward. Last year, the SEC awarded $30 million to an undisclosed whistle-blower and last month awarded $1.4 million to another. The awards appear to be having an impact. Last year, the SEC received more than 3,000 tips from whistle-blowers.
Max Wolff on Whistle-blowers in Wall Street
For more on the topic CCTV spoke to Maxx Wolff. He is the Chief Economist at Manhattan Venture Partners.
Max Wolff on Whistleblowers in Wall StreetFor more on the topic CCTV spoke to Maxx Wolff. He is the Chief Economist at Manhattan Venture Partners
Subprime loans explained
The ‘Great Recession’ that almost crashed the US economy was precipitated by the bad behavior of some of the biggest Wall Street banks. And it was their creation of the so-called subprime loan that almost brought about the country’s ruin. CCTV America’s Rachelle Akuffo takes a closer look at one part of what billionaire entrepreneur Warren Buffett has called ‘financial weapons of mass destruction.’