If we fail to address the financial sector’s Achilles’ Heel – misconduct risk – in the course of what Mohamed El-Erian has termed a race between economics and Covid-19, a spate of scandals will almost inevitably follow our current heroic efforts. This will rob the financial industry of what little public trust remains to it, likely deepening an already worryingly broad discontent with capitalism – and perhaps even with democracy itself.

Policymakers, regulators, supervisors, boards and bank leadership and risk officers should consider this closely if they wish to avoid a future crisis, as pandemic-era bombs explode further on up the road.

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