Greenspan on Ethics

Governor Bies is not the only Federal Reserve Board Governor who is concerned about ethics. Chairman Greenspan spoke recently to the Conference on Bank Structure and Competition. In his presentation, he advised the audience that it is hard to overstate the importance of reputation in a market economy. He stressed that "rules cannot substitute for character."

He also stated that the ability to trust the word of a stranger is an integral part of any sophisticated economy. A reputation for honest dealings within a corporation is critical for corporate governance.

Copyright © 2003 Compliance Action. Originally appeared in Compliance Action, Vol. 8, No. 7, 7/03