In light of all the misdeeds that big banks have gotten caught committing, some regulators are concluding that the banking industry has major cultural and ethical problems.

"There is evidence of deep-seated cultural and ethical failures at many large financial institutions," William Dudley, president of the New York Federal Reserve Bank, said in a speech last year, The New York Times reports.

In an interview with the paper, he said he wants to "make it clear that 'too big to fail' isn't the only problem" for large banks. "I don't want senior bank management to feel, 'Oh gee, if we solve "too big to fail," we're done,'" Dudley said.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

He said the big banks have a serious trust issue with the public. "And I think that trust issue is of their own doing. They have done it to themselves."

To be sure, banks have shown themselves quite willing to fight regulators in court, so it's no slam dunk that they will suddenly turn cooperative.

"I haven't yet seen bankers rushing to say Bill Dudley speaks truth on this issue," Cornelius Hurley, a professor at Boston University law school, told The Times.

Meanwhile, bank analyst Richard Bove of Rafferty Capital Markets complains that U.S. regulators have it in for big banks, and he thinks the attacks will end in disaster.

"Virtually every major country in the world has a highly concentrated banking industry populated by multi-product banks," he wrote in a commentary for CNBC.com.

"There are sound financial reasons as to why the global banking system has evolved in this manner. Simply stated, despite periodic flare-ups, these systems work best."

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Stories:

• NYT: Major Banks Might Settle Mortgage Cases for $50 Billion
• LA Times: Big Bank Mortgage Settlements Are Bogus