/ 4 bis central bankers'speeches that ’ s one reason i ’ ve been so looking forward to today ’ s panel discussion. it brings together experts from many of these fields, whose combined insights are the key to moving us all toward the business culture we want to see. learn more about the new york fed ’ s work on governance and culture reform. 1 see, for example, peter eavis and keith collins, “ the banks changed. except for all the ways they ’ re the same, ” new york times, september 12, 2018 ; yalman onaran, “ stung by big fines, big banks beef up moneylaundering controls, ” bloomberg, april 4, 2019 ; “ citi hit hardest as eu fines banks $ 1. 2 billion over foreign exchange, ” american banker, may 16, 2019. 2 this scenario is adapted from work by the education and industry forum on financial services culture, a private - sector voluntary membership group sponsored by the federal reserve bank of new york. 3 max h. bazerman and ann e. tenbrunsel, blind spots : why we fail to do what ’ s right and what to do about it ( princeton university press, 2011 ). 4 asch, s. e. “ effects of group pressure upon the modification and distortion of judgments, ” in groups, leadership and men ; research in human relations, ed. h. guetzkow ( pittsburgh : carnegie press, 1951 ). 5 saul mcleod, solomon asch - conformity experiment, simplypsychology. org, december 28, 2018. 6 building cultural capital in the financial services industry : emerging practices, risks and opportunities, conference summary, federal reserve bank of new york, june 4, 2019. 7 banking standards board, assessment results 2018, ( united kingdom ). 4 / 4 bis central bankers'speeches

john c williams : getting to the core of culture remarks by mr john c williams, president and chief executive officer of the federal reserve bank of new york, at “ working together ; an interdisciplinary approach to organisational culture ”, london school of economics and political science, london, 14 january 2020. * * * as prepared for delivery thank you for the warm introduction. it ’ s an absolute pleasure to be back at the london school of economics, where i completed my master ’ s degree in the late 1980s. studying at the lse, with remarkable professors like richard layard, chris pissarides, george evans, and the late tony atkinson, inspired me to pursue a career in economics and public policy. i owe a great debt of gratitude to this institution and am in awe of how it has evolved and grown in the past 30 years. i will say that there are a few things i have not missed since my days in london : the food ( yes, that has changed! ), the high cost of living ( some things never change ), and the endless studying for and worrying about final exams. but i have missed the dear friends i made, the book shops, and the library. it ’ s ironic that i find myself back at the london school of economics andnot talking about economics. the views i bring to today ’ s discussion come from professional and personal, rather than academic experience. i ’ ve now led two major organizations, and culture is both the hardest and the most important thing to get right. culture is at the heart of behavior and norms, and the single most important factor driving the decision - making of employees. it ’ s not an exaggeration to say that culture is critical — both when things go right, and when they go wrong. before i get any deeper into ideas about culture, i should give the standard fed disclaimer that the views i express today are mine alone and do not necessarily reflect those of the federal open market committee or others in the federal reserve system. culture shapes our working lives when we talk about company culture in the context of financial services, the first thing that comes to mind is the risky, unethical, and sometimes criminal behavior in the banking industry, particularly during the financial crisis. and 10 years on from the crisis, this behavior persists. instances of fraud, money laundering, and scandals related to foreign exchange and libor continue to make the headlines. 1 this behavior puts a spotlight on the essential role of robust regulation