For today’s MBA graduates, misconduct is a real turnoff.
That’s creating a recruiting challenge in the financial-services industry, according to Federal Reserve Bank of New York President William Dudley. The fallout from banking scandals in the wake of the 2007-2008 financial crisis has dimmed the allure of the industry in some quarters, he said, citing meetings with business-school deans.
“The industry is held in not such high regard now,” Dudley said at a moderated question-and-answer session in New York on Wednesday. “There are people who would actually not go into the financial-services industry because of this bad conduct. That’s not a good cycle. If the most ethical people coming out of the business schools decide that they’re not going to go into this industry, that means there’s quite a bit more work to do.”
While substantial progress has been made to improve the culture at banks, Dudley said he’s “not satisfied” and there’s still more work to be done.