Year: 2024
Type: article
Abstract: For the learning of every virtue there is an appropriate discipline…" -Bertrand Russell, "Philosophy for Laymen" (1946) At JPMorganChase's 2023 Investor Day, an analyst asked CEO Jamie Dimon what it took to be a good bank leader."The most important strength is you're trusted and respected by people, that you work your a--off, that you give a sh-t, that you know you don't know everything, " he replied.1 Trustworthiness, industriousness, commitment, intellectual humility.Perhaps not an exhaustive list, but these seem to be important virtues for leaders in finance, according to Mr. Dimon -and it's hard to argue with him, given his iconic industry status.But how do we test for such personal qualities before bringing someone into the banking sector, let alone before they might manage to reach its pinnacle? Regulators want to knowEven before the financial crisis, banking sector overseers began trying to evaluate whether potential industry entrants and executives were rightly deemed "fit and proper" for their roles.In the UK, for instance, the 2000 Financial Services and Markets Act awarded the Financial Services Authority the power to disqualify persons from undertaking regulated activities if they were not of the right sort. 2In 2010, the Central Bank of Ireland (CBI) introduced its Fitness and Probity regime as a means to help rebuild trust in the financial sector post-Global Financial Crisis (GFC) 3 .The regime requires that firms ensure staff are fit to 1 JPMorgan Chase & Co.
Authors: Edward Brooks, Stephen Scott
Institution: University of Oxford
Language: English
Subfield: Information Systems and Management
Field: Decision Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409256491