New evidence that financial services firms are actively seeking to suppress employee truth-telling is increasing the danger of a new financial crisis, warns the law firm of Labaton Sucharow in a study released Tuesday.
The New York-based law firm specializes in representing whistleblowers. It surveyed 925 U.S. financial services workers between December 22 and January 23.
To support the contention employees are increasingly fearful of bringing to light misdeeds, Labaton said the number of financial services workers who felt they would be retaliated against if they reported wrongdoing in their company climbed to 19 percent from 14 percent three years earlier.
Labaton said there also was an increase in the same period to 32 percent from 28 percent in the number of financial services workers believing their firm’s compensation or bonus plans created pressure to compromise ethical standards or violate the law.
“Without an aggressive plan to stamp out misconduct, we are simply sitting and waiting for another financial disaster to happen,” said the authors.
The law firm said a partnership between financial services companies and their employees is needed to speak up about possible wrongdoing in the workplace.
Labaton added the number of financial services professionals who claimed to have firsthand knowledge of wrongdoing in their companies stayed stable at 22 percent for 2012 and 2015.