Starling, a pioneering risk governance and supervisory solutions provider, announced today the appointment of former Federal Reserve Bank of New York President Bill Dudley to its Industry & Regulatory Advisory Board.
William C. Dudley is a Griswold Center for Economic Policy Studies senior advisor in the Department of Economics at Princeton University, after serving as the inaugural senior research scholar from 2019-2021. In addition, he chairs the Bretton Woods Committee and is a member of the Council on Foreign Relations. Dudley was the tenth President and CEO of the Federal Reserve Bank of New York, from 2009-2018, and as vice-chairman of the Federal Open Market Committee (FOMC). He previously served as executive vice president of the Markets Group at the New York Fed, where he also managed the System Open Market Account for the FOMC. Prior to joining the NY Fed in 2007, Dudley was a partner and managing director at Goldman, Sachs & Company and served as the firm’s chief U.S. economist for a decade.
"For too long, culture has been treated as too soft to be actionable — something supervisors acknowledge to matter but that they struggle to address before problems emerge. That has to change,” Dudley said. “The incentives that drive behavior, and the social norms those behaviors both reflect and produce, are ultimately what determine whether a financial institution is well-run or not,” he added. “As I’ve long emphasized, getting that right is not just in the interest of regulators; it should be in the interest of the firms as well.”
“Starling is doing the hard work of making culture tangible,” Dudley said. “This is a real public service. The financial sector needs better tools — tools that allow supervisors and firm leaders alike to identify where cultural and behavioral risks are building, before they cascade into the kind of loss-producing events and scandals that erode the public’s trust in our institutions,” he argued. “Starling is developing the data-driven capabilities we need if we are going to do better, and I am delighted to contribute to that vital effort."
“Since the Global Financial Crisis, Bill has been at the center of global efforts to make supervision more forward-looking, more disciplined, and more effective,” said Stephen Scott, Founder & CEO of Starling. “He has championed ideas central to our work: learning from the behavioral sciences and harnessing the promise of AI-powered ‘SupTech’ capabilities,” he added.
“Starling’s work begins from the simple premise that culture is not an abstract governance or supervisory concern,” Scott said. “As Bill has long maintained, culture works through feedback loops: it establishes behavioral norms, manifests in patterns of decision-making and observable conduct, and then reinforces the behavioral patterns people are expected to mimic,” he added. “This is as true for supervisory agencies as it is for the firms they oversee.”
“I am pleased to welcome Bill to Starling’s advisory team as we expand our efforts to advance the tools, methods, and public-private coalitions that will be needed to move from retrospective diagnosis to proactive prevention. At a moment of heightened public and political scrutiny, success in this work is central to financial sector safety and stability and to the future of supervisory legitimacy,” Scott concluded.
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