Federal Reserve Chair Janet Yellen lashed out at the culture in the nation's biggest banks on Tuesday saying "there may be pervasive shortcomings in the values of large financial firms that might undermine their safety and soundness."
In a speech in New York City, Yellen, who as head of the Federal Reserve is the nation's leading bank supervisor, said that the Fed expects banks to follow the law and act ethically. "Too often in recent years, bankers at large institutions have not done so, sometimes brazenly," she said.
The remarks come amid ongoing investigations and settlements by big banks in key areas of their businesses, including mortgages, currency trading and setting interest rates. They appear to be her strongest comments yet on the issue, going further than previous speeches and other Fed officials in suggesting a pattern.