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Argues that the trust-intensive nature of the financial services industry makes it essential to rebuild trustworthiness in the provision of financial services. It considers the lack of trust that emerged following deregulation of the financial sector and examines what is needed to rebuild trustworthiness.
List of contents
- Preface
- What Went Wrong?
- 1: Sue Jaffer, Nicholas Morris, and David Vines: Why Trustworthiness is Important
- 2: Sue Jaffer, Nicholas Morris, Edward Sawbridge, and David Vines: How Changes to the Financial Services Industry Eroded Trust
- 3: Thomas Noe and H. Peyton Young: The Limits to Compensation in the Financial Sector
- 4: Richard Davies: A Short History of Crisis and Reform
- 5: Sue Jaffer, Susana Knaudt, and Nicholas Morris: Failures of Regulation and Governance
- Trustworthiness, Motivations, and Accountability
- 6: Natalie Gold: Trustworthiness and Motivations
- 7: Avner Offer: Regard for Others
- 8: Onora O'Neill: Trust, Trustworthiness, and Accountability
- Problems with the Legal and Regulatory System
- 9: Joshua Getzler: Financial Crisis and the Decline of Fiduciary Law
- 10: Justin O'Brien: Professional Obligation, Ethical Awareness, and Capital Market Regulation
- 11: John Armour and Jeffrey N. Gordon: Systemic Harms and the Limits of Shareholder Value
- Crafting the Remedies
- 12: Boudewijn de Bruin: Ethics Management in Banking and Finance
- 13: Dan Awrey and David Kershaw: Toward a More Ethical Culture in Finance: Regulatory and Governance Strategies
- 14: Seumas Miller: Trust, Conflicts of Interest, and Fiduciary Duties: Ethical Issues in the Financial Planning Industry in Australia
- 15: Avner Offer: A Warrant for Pain: Caveat Emptor vs. the Duty of Care in American Medicine, c. 1970-2010
- 16: Sue Jaffer, Nicholas Morris, and David Vines: Restoring Trust
About the author
Nicholas Morris is Academic Visitor and Senior Research Associate at Balliol College, Oxford. He is an economist with 35 years of wide-ranging experience: in the finance, water, energy, transport, telecoms, and health sectors; in infrastructure provision; and in the design of regulatory structures. He was a co-founder and then Chief Executive of London Economics, for a period of 14 years, and, prior to that, was Deputy Director of the Institute for Fiscal Studies. Nicholas has an M.A. in Engineering and Economics and an M.Phil. in Economics from Balliol College, Oxford. He has been a visiting Professor of City University, a Governor of the charity 'Research into Ageing', a Fellow of Melbourne University and a Guest Professor at the China Executive Leadership Academy, Pudong. During the last 12 years he has worked extensively in Australia, South East Asia, and China advising governments, regulators, and companies.
David Vines is a Professor of Economics and a Fellow of Balliol College at Oxford University. He obtained a BA in Economics and Mathematics from Melbourne University, and an MA and PhD in Economics from the University of Cambridge. His research has been on international macroeconomics and on global governance and his early work was with James Meade in Cambridge on the construction of inflation-targeting regimes. Between 1994 and 2000 he was the Director of an ESRC Research Programme on Global Economic Institutions, and from 2008 to 2012 he was the Research Director of a European Union Framework Seven Research Program, PEGGED, on the Politics and Economics of Global Governance: the European Dimension. Fifteen years ago he organized an interdisciplinary seminar on integrity with the philosopher Alan Montefiore, the proceedings of which were published as A. Monetefiore and D. Vines, Integrity in the Public and the Private Domains (Routledge, 1999).
Summary
Argues that the trust-intensive nature of the financial services industry makes it essential to rebuild trustworthiness in the provision of financial services. It considers the lack of trust that emerged following deregulation of the financial sector and examines what is needed to rebuild trustworthiness.
Additional text
Trust in the financial services industry is currently at a low ebb. Nicholas Morris and David Vines have gathered together a group of economists, lawyers, philosophers and practitioners to consider what might be done to rebuild trust in this sector. The resulting collection, Capital Failure, provides a wide range of examples of how trust was lost and what might be done to recover it
