Which major banking crisis highlighted the need for improved conduct and ethics?

The 2007-2009 banking crisis was a pivotal event that exposed significant weaknesses in the banking industry, particularly concerning conduct and ethics. This crisis, often referred to as the Global Financial Crisis, stemmed from various factors, including the collapse of the housing bubble, excessive risk-taking by financial institutions, and a failure in regulatory frameworks.

The crisis led to widespread financial instability, resulting in the failure of major banks and requiring government bailouts to prevent a complete financial meltdown. In the aftermath, there was a substantial realization among regulators, institutions, and the public about the need for a stronger ethical foundation within banking practices. The lack of transparency and accountability demonstrated during the crisis highlighted the necessity for improved conduct standards that would not only protect consumers but also ensure the stability of the financial system.

Subsequently, reforms such as the Dodd-Frank Act in the United States aimed to promote better risk management and ethical behavior within financial institutions, marking a significant shift in the regulatory landscape. This focus on conduct and ethics remains an ongoing effort in the industry to prevent future crises and restore public trust.