Many banks have rightly developed codes of ethics or business principles, but have all their traders absorbed their meaning? A first step to restore trust in markets might be to rely on traders’ intuitive understanding of what makes a true market. Consideration should be given to developing principles of fair markets, codes of conduct for specific markets, and even regulatory obligations within this framework. There should be clear consequences including professional ostracism for failing to meet these standards. The basic point is that all market participants, large and small, should recognise that market integrity is essential to fair financial capitalism. Confidence in the integrity of those markets needs to be reinforced alongside genuine competition to ensure that the needs of end customers are properly and effectively served. Doing so will reinforce the City’s welldeserved reputation as the world’s leading financial centre, with the most effective and efficient markets. Third, reforming compensation Dominic Barton and Mark Wiseman (2014) have detailed the need for long-term thinking by concentrating on shareholder incentives. A related lesson of the crisis was that compensation schemes that delivered large bonuses for short-term returns encouraged individuals to take on too much long-term and tail risk. In short, the present was overvalued and the future heavily discounted. To align better incentives with the long-term interests of the firm – and, more broadly, society – major changes are underway. At the request of G20 Leaders, the FSB has developed the principles for sound compensation practices to align incentives with long-term risks.

A sense of self must be accompanied by a sense of the systemic. Consider four financial reforms that are helping to create this sense of the systemic and thereby rebuild trust in the system. First, ending Too-Big-To-Fail Perhaps the most severe blow to public trust was the revelation that there were scores of too-big-to-fail institutions operating at the heart of finance. Bankers made enormous sums in the run-up to the crisis and were often well compensated after it hit. In turn, taxpayers picked up the tab for their failures. That unjust sharing of risk and reward contributed directly to inequality but – more importantly – has had a corrosive effect on the broader social fabric of which finance is part and on which it relies. By replacing such implicit privilege with the full discipline of the market, social capital can be rebuilt and economic dynamism increased. The leaders of the G20 have endorsed measures to restore capitalism to the capitalists by ending too-big-to-fail and, in response, the Financial Stability Board (FSB) has identified systemically important institutions; made them subject to higher standards of resilience; and developed a range of tools to ensure that, if they do fail, they can be resolved without severe disruption to the financial system and without exposing the taxpayer to loss. This is the year to complete that job. Governments must introduce legislative reforms to make all systemically important companies, including banks, resolvable. Jurisdictions must also empower supervisors to reach agreements for credible cross‐border resolution plans.