Press Release from iUniverse – Jonathan Ledwidge argues root causes of subprime mortgage crisis have not been addressed
LONDON – In his book Clearing the Bull: The Financial Crisis and Why Banks Need a Human Transformation (published by iUniverse), author and banker Jonathan Ledwidge argues that the 2008 subprime mortgage crisis was, from beginning to end, a human crisis which resulted from a poor system of values. He maintains that as long as that poor system of values remains in place, the world financial system remains at risk.
Drawing on his more than 20 years of industry experience, Clearing the Bull uses plain and simple language to demonstrate how human behaviors impacted banks at both the strategic and operational level, thus facilitating the crisis. As such, his analysis also provides a blueprint for change and transformation.
Size is one area that the author believes needs attention. In an excerpt from Clearing the Bull, Ledwidge explains this as follows:
In the banking industry, the obsession with power and size has manifested itself in what can best be described as “Death Star strategies”. Many of the banks that adopted that strategy ended up with Death Star outcomes…
It was this combination of factors that led to the demise of and/or necessitated the rescue of such banks as RBS, Citibank, Lehman Brothers, and Merrill Lynch.
Ledwidge demonstrates that the subprime crisis is really no different from previous crises such as LDC Debt, Junk Bonds, the Japanese Asset Bubble and Dotcoms – where in each case, human behaviors created artificially-inflated markets which then went bust. After each of these crises came more legislation, more regulation, more governance and more controls, which worked well until the next crisis came along and the cycle repeated. Ledwidge argues it is time to learn the lessons of history.
Clearing The Bull, he believes, means first looking beyond the stale solutions of the past in order to see the real causes of the crisis – the human behavioral issues and the values that influence them. Yet, the book also goes beyond that and lays out a comprehensive solution.
About the Author – Jonathan Ledwidge, a native of London, grew up in Jamaica. He studied physics and chemistry at the University of the West Indies before joining Price Waterhouse and completing his Association of Chartered Certified Accountants qualification. He earned an M.B.A. from Cass Business School and has worked at a number of banks, including Continental, CIBC, and ABN AMRO. He is also the author of The Human Asset Manifesto and A Mannequin for President. For more information, visit his blog at www.ledwidge.wordpress.com.