Bankers are still breaking the rules to get ahead. Here's the proof

Illegal and unethical behaviour is still commonplace in the finance world, according to research

More than 1,200 workers were quizzed in the research Credit: Photo: Cathal-McNaughton

Illegal and unethical behaviour on Wall Street and in the City of London isn't just the work of a few bad apples - it's commonplace, according to new research.

More than one in five financial services employees in America and the UK have seen their co-workers breaking the law or engaging in misconduct, a survey of more than 1,200 workers has found. Many feel under pressure to break the rules, believing it is a necessary part of getting ahead.

Those at the top of the food chain are even more likely to have seen misconduct, with over a third of those earning more than $500,000 a year say they "have witnessed or have first hand knowledge of wrongdoing in the workplace".

The University of Notre Dame and law firm Labaton Sucharow, which published the report, said it showed that bankers had failed to improve behaviour, despite billions of dollars in fines, and new regulations threatening jail.

"Despite the headline-making consequences of corporate misconduct, our survey reveals that attitudes toward corruption within the industry have not changed for the better," the report's authors said.

The researchers - who interviewed 1,223 banking and financial services workers, 925 in the US and 298 in the UK - found that:

  • 47pc believe competitors had "engaged in illegal or unethical activity" to get ahead, up from 39pc in 2012
  • 23pc say fellow employees had done so, up from 12pc in 2012
  • Almost a third - 32pc - of respondents believe pay and bonus structures can incentivise wrongdoing
  • Nearly one in five believe employees are under pressure to break the law or act wrongly to get ahead in the industry
  • 33pc say the industry has not improved itself since the financial crisis

The research comes the day before five banks are expecting fines worth more than $6bn related to foreign exchange manipulation. Barclays, Royal Bank of Scotland, JPMorgan, Citigroup and UBS are also expected to plead guilty to criminal charges in America.

"Despite significant energy and efforts, it appears we need to continue to think about how to improve the culture of ethics in the financial services industry and most likely, in other sectors as well,” said the University of Notre Dame's Ann Tenbrunsel, who co-authored the report.

The research was paid for and released by Labaton Sucharow, a legal firm that represents Wall Street whistleblowers. Those questioned in the survey were also asked about whistleblowing practices, and 16pc said that corporate policies barred them from reporting illegal activity to authorities.

"These tactics are particularly insidious because they keep local, state and federal law enforcement organizations in the dark about all types of wrongdoing—everything from large-scale corporate frauds, environmental accidents and public safety concerns," said Labaton Sucharow's Jordan Thomas.