The governor of the Bank of England this morning vowed his institution would learn some valuable lessons following the recent scandal involving the appointment of Charlotte Hogg as deputy governor.
Just last week, Hogg handed in her resignation, after she came under fire for failing to disclose her brother's job at Barclays as a potential conflict of interest. It was announced she had been appointed to the role less than two months earlier.
Speaking today at an event focusing on ethics in banking, Mark Carney apologised for the incident and noted independent non-executive directors were now reviewing the Old Lady of Threadneedle Street's reaction to "recent events".
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"The Bank of England will learn the lessons of these unfortunate events and apply those lessons to reinforce what's best in banking and the Bank of England," Carney added.
The Bank of England governor added he recently met with banking industry top dogs to stress that, as a regulator, it still expected them to play by the roles.
In the days before Hogg stood down, it was reported a number of senior bankers were extremely disappointed with the revelations, pointing out that they did not see why they should have to follow the rules the Bank of England laid down if it did not play by the rules itself.
"For those who have questioned whether we 'get it', we do," Carney said today. "We know this honest mistake was also a serious mistake – one that was compounded by the fact that Charlotte Hogg was responsible for the development of [our code of conduct]. In fact, she had overseen its development."
However, he also defended the Bank's reaction to the event as "proportionate" and warned the commentary around recent events risked creating a myth that regulations, such as the Senior Managers' Regime, required "one strike and you're out" style discipline.
"Proportionate means taking into account the severity of the incident, the track record of the individual and their firm, as well as the firm's wider response," he said. "An honest mistake that is freely admitted for which a firm takes prompt remedial action is not a firing offence."
Carney was speaking at an event hosted by the Banking Standards Board (BSB) entitled "Worthy of trust? Law, ethics and culture in banking".
In the BSB's maiden annual review, which consisted of a survey of more than 28,000 banking sector staff, 12 per cent said they had seen unethical behaviour being rewarded, 13 per cent felt they might not be able to get ahead in their careers without flexing their own ethics and 18 per cent noted people at their firm turning a blind eye to inappropriate behaviour.