Culture of integrity needed to combat banking fraud, says US supervisor

LEXINGTON, VIRGINIA -- Maintaining a culture that values integrity and creates adequate controls is crucial for banks and the effort must start at the top, US Federal Reserve Board vice-chairman Roger Ferguson said in early March.

Neither bank supervisors nor internal or external auditors can detect or deter all weak practices, particularly when core management principles are not applied.

And fraud is particularly difficult to uncover, because it often involves collusion and individuals with