The Very Hungry Banker: what a minor expenses dispute says about trust in banking

In 2022, Citibank sacked a senior banker who expensed two sandwiches and two coffees while on a business trip to Amsterdam. The worker asserted multiple times that he had consumed all the food, when in reality, he had bought lunch for his spouse.

In new research published in the European Business Law Review, Professor Lucy Newton and co-authors examine the subsequent legal case of Fekete v. Citibank (2023). Although the value of the claim was small, the case highlights how honesty, integrity and organisational culture have become central concerns in modern banking.

The research argues that it’s a story bigger than a banker losing his job over two sandwiches and two coffees. Like the children's classic The Very Hungry Caterpillar, the case offers its own moral lesson about greed, restraint and, above all, truthfulness.

Why do we need to trust our bankers?

The research places the tribunal's decision within the wider context of banking reform following the 2007-08 global financial crisis. In the years since the crisis, regulators and policymakers have sought to rebuild public confidence in financial institutions by requiring ethical behaviour, personal accountability and strong organisational cultures in the companies that handle our money.

Professor Lucy Newton, Pro-Dean od Education and Student Success, said of the research,

"Trust is fundamental to banking - customers hand over their money expecting banks and their employees to act honestly. From this perspective, misconduct by individuals can have consequences far beyond a single organisation, affecting confidence in the wider financial system."

Regulatory initiatives in banking

The study explores how regulatory initiatives, including the UK's Senior Managers and Certification Regime, have increased expectations of personal integrity within financial services. Banks are now expected not only to establish clear codes of conduct but also to demonstrate that those codes are actively enforced.

In Fekete v. Citibank the tribunal found that the dismissal was justified not because of the value of the claim itself, but because the employee repeatedly misrepresented the facts when questioned. This distinction is crucial, because this case was ultimately about honesty rather than money.

Citibank's response to a questionable expense form shows how banks use disciplinary processes to reinforce a culture of integrity and signal trustworthiness to employees, regulators and the public. But researchers caution that focusing solely on individual misconduct is not enough. Lasting cultural change requires organisations to address wider incentives and systemic issues that can encourage unethical behaviour.