This is the second in a three-part series of articles on the financial crisis. Part I can be found at this link.
The Real Reason for the Subprime Crisis and Bank Failures
The subprime crisis was not really about management, risks, controls and regulations—these were all after the fact. The crisis was a direct result of human failings which stemmed from a poor system of values. In order to understand this we have to look at and examine the crisis within the context of the industry’s human ecosystem. The following analysis does precisely that.
Posted in Banking
Tagged Banks, Behavior, Clearing The Bull, Customers, Financial Crisis, Human, Human Assets, Junk Bonds, LDC Debt, Legislation, Mission, people, Plato, Predatory Lending, Regulation, Subprime Crisis, Suppliers, Sustainable, Values
The following interview with Jonathan Ledwidge on the newly published book, Clearing The Bull, was posted in the Cass Business School Alumni magazine.
Posted in People
Tagged Banks, Cass, Clearing The Bull, Crisis, Customers, Financial Crisis, Governance, Government, Human Assets, Internal Controls, Legislation, people, Regulations, Subprime, Sustainability, Values
What do banking employees think of their employers?
Are they proud of their industry? Are bankers suitably positioned to avoid the next financial crisis?
What does the public think? How do their opinions differ and is there a significant perception gap?
As a prelude to the launch of the book Clearing The Bull, the aim of this survey is to gain more insight into some of the topics raised by the book, and in particular the proposition that banks need to pay more attention to human factors, and in particular their own human assets.
Please click on the link below to commence the survey.
Clearing The Bull – A Survey of Banks and the Financial Crisis
When you are finished, please pass it on to as many friends and colleagues as you can.
Western society is now facing economic challenges that, until recently, were almost inconceivable. Budget deficits, austerity measures and overall economic decline, in both relative and absolute terms, all appear to be the order of the day.
As a consequence, the liberal democracy which the west has held aloft like a prized-possession for so long, is also now under threat. Greece and Italy are being run by appointed technocratic governments, the EU suffers from political gridlock and the US political system is in rigor mortis.
Most people will either think or want to believe that all this has been triggered by the banks and the subprime crisis which they brought about. However, this is not entirely true. As a matter of fact that would be putting the cart before the horse.
History tells us a slightly different story—and that is that almost every major banking or financial crisis of the past 40 years has been accompanied by great economic and political issues and events that in many instances have had a global impact. The subprime crisis was no different.
This is just one example of what Clearing The Bull is all about. The book looks beyond the conventional rhetoric and belief systems to not only better understand the nature of financial crises, but also why banks need to do a much better job at managing both their internal and external environment.
Available for pre-order!
Posted in Banking
Tagged Banks, Business, Central Banks, Clearing The Bull, Controls, Credit, Deregulation, Derivatives, Economics, Federal Reserve, Finance, Financial Crisis, Governance, Government, Hedge Funds, Human, Human Assets, Investment Banking, Leadership, Management, Regulators, Risk, Securitization, Subprime, Subprime Mortgages, TBTF, Too Big To Fail, Transformation, Values