Saved By the Whistle

By on June 21, 2018

June 21, 2018

Last February the U.S. Supreme Court threw out an anti-retaliation suit brought by a former employee who was fired after reporting alleged securities violations. The Court ruled that because the employee reported the wrongdoing internally instead of directly to the SEC he was not protected. Thus the rules the SEC created to enforce Dodd-Frank that allowed for internal reporting no longer obtain. This was generally viewed as a victory for companies that have seen their reputations tarnished when insiders blew the whistle, but at a recent conference on bank culture hosted by the Federal Reserve Bank of New York, the opposite point of view prevailed. The participants spent much of the session discussing how to incentivize employees to tell them what’s wrong. “Good news tends to travel up much more quickly” than bad news does, said Elizabeth “Betsy” Duke, the board chair at Wells Fargo. “It helps to be a little paranoid and a little scared,” said James Gorman, CEO of Morgan Stanley. There was general agreement that one of the biggest challenges is convincing employees to come forward and share bad news with leadership before a matter gets out of hand.
Read the full article at:

American Banker

Leave a Reply

Your email address will not be published. Required fields are marked *

*