William Dudley, president of the Federal Reserve Bank of New York, made the comment at a Lotos Club dinner a day before his Fed bank is to host a conference "Reforming Culture and Behavior in the Financial Services Industry."

Last month, Wells Fargo agreed to pay a $190 million settlement over its staff opening as many as 2 million accounts without customers' knowledge. The misconduct triggered a raft of federal and state investigations and led to the resignation last week of its chief executive and chairman, John Stumpf.

(Reporting by Jonathan Spicer; Editing by Leslie Adler)