Taking the Floor

2019 ◽  
Author(s):  
Daniel Beunza
Keyword(s):  
Organizational Culture ◽  
Financial Markets ◽  
Social Relations ◽  
Moral Disengagement ◽  
Financial Models ◽  
Financial Reform ◽  
Moral Norms ◽  
Wall Street ◽  
Use Of Models ◽  
Blind Spots

Debates about financial reform have led to the recognition that a healthy financial system does not depend solely on how it is structured—organizational culture matters as well. Based on extensive research in a Wall Street derivatives-trading room, this book considers how the culture of financial organizations might change in order for them to remain healthy, even in times of crises. In particular, the book explores how the extensive use of financial models and trading technologies over the recent decades has exerted a far-ranging and troubling influence on Wall Street. How have models reshaped financial markets? How have models altered moral behavior in organizations? The book takes readers behind the scenes in a bank unit that, within its firm, is widely perceived to be “a class act,” and it considers how this trading room unit might serve as a blueprint solution for the ills of Wall Street's unsustainable culture. It demonstrates that the integration of traders across desks reduces the danger of blind spots created by models. Warning against the risk of moral disengagement posed by the use of models, the book also contends that such disengagement could be avoided by instituting moral norms and social relations. The book profiles what an effective, responsible trading room can and should look like.

Relationships of collapse: network brokerage, opportunism and fraud in financial markets

2017 ◽  
Vol 44 (12) ◽  
pp. 2097-2111 ◽  
Author(s):  
Bryce Hannibal ◽  
Hiroshi Ono
Keyword(s):  
Financial Markets ◽  
Social Relations ◽  
Financial Sector ◽  
Theoretic Approach ◽  
Network Ties ◽  
Wall Street ◽  
Content Type ◽  
Network Characteristics ◽  
Network Location ◽  
Telecommunications Market

Purpose This paper explores the social-behavioral aspects of financial markets. The purpose of this paper is to examine the role of social relations and networks which contributed to the market crash in the US telecommunications sector in the late 1990s. Design/methodology/approach A network theoretic approach is used to examine historical qualitative data. The authors suggest that the network characteristics of financial intermediaries allowed security analysts to control and manipulate information that was disclosed to the investing public. Findings The authors find evidence that brokerage locations in the network of actors within the telecommunications market allowed select individuals opportunities to engage in unethical behavior and malfeasance. The authors further highlight the harmful effects of over-embeddedness by illustrating that strong and dense network ties within the financial sector were exploited to distort the flow and reliability of information. The paper concludes with a note on the generalizability of this study and an examination of the current economic-legal structure of Wall Street. Originality/value Recently, some economists and network scholars have begun examining social relations more thoroughly in the financial sector. This paper is one of the first that focuses specifically on the role and network location of research analysts prior to a market collapse.

When All Is Said and Done

2019 ◽  
pp. 243-274
Author(s):  
Daniel Beunza
Keyword(s):  
Public Interest ◽  
Moral Disengagement ◽  
Hedge Fund ◽  
Financial Reform ◽  
Management Approach ◽  
Current Debate ◽  
Law Firm ◽  
Wall Street ◽  
Left Wall ◽  
Public Interest Law

This chapter revisits the protagonists of this study's fieldwork at International Securities in 2015: Todd, Max, and Bob, seven years after the crisis. By that time, Todd had left Wall Street, Max was closing a hedge fund he had recently founded, and Bob was running a conservative public-interest law firm. The author's meeting with Todd underscored the scarcity of committed and competent top management on Wall Street. Conversations with Max revealed his nostalgia for the investment banking partnerships of the early 1980s, as well as the advantages of Bob's management approach, which sought to replicate elements of the partnerships. Finally, the meetings with Bob spoke to the current debate on financial reform, revealing the presence of a feedback loop that connects bank size, economic models, and moral disengagement. In light of this loop, Bob advocated the breakup of Wall Street banks.

Difficulties of the Financial Reform in the USA

2013 ◽  
pp. 147-158
Author(s):  
V. Kulakova
Keyword(s):  
Economic Policy ◽  
Consumer Protection ◽  
Financial Regulation ◽  
Financial Reform ◽  
Wall Street ◽  
Political Sciences ◽  
Consumer Protection Act ◽  
The Usa ◽  
Major Factors ◽  
International Financial Regulation

We study the reform of financial regulation initiated by the Dodd—Frank Wall Street Reform and Consumer Protection Act of 2010. Major factors impeding Obama’s financial and economic policy are explored, including institutional difficulties, party warfare, lobbyism, and systemic inconsistencies of international financial regulation. We also examine challenges that are being faced by economic and political sciences due to the changes in financial regulation and also assess the level of radicality of the financial reform.

Matchmakers and Markets

2020 ◽  
Author(s):  
Yi-Cheng Zhang
Keyword(s):  
Financial Markets ◽  
Policy Maker ◽  
Real World ◽  
World Economy ◽  
Market Theory ◽  
Wall Street ◽  
The Real ◽  
Information Intermediaries ◽  
Consumer Markets ◽  
High Street

In attempting to understand the bewildering complexity of consumer markets, financial markets, and beyond, traditional textbooks and theories will not help much. This book presents a new market theory in which information plays the most important role. Markets are portrayed with three categories of actor: consumers, businesses, and information intermediaries. The reader can determine his own role, and with analysis and examples from the real-world economy, new questions can be raised and individual conclusions drawn. The aim is to stimulate the reader’s own thinking, either as a consumer on the high street, an investor on Wall Street, a policy maker in a government armchair, or an entrepreneur dreaming of the next big opportunity. This book should also generate and inspire academic debates, as the claims and conclusions are often at odds with mainstream theory.

scholarly journals Debt and Sacrifice: The Role of Scapegoats in the Economic Crises

Religions ◽  
2021 ◽  
Vol 12 (2) ◽  
pp. 128
Author(s):  
Luis Enrique Alonso ◽  
Carlos J. Fernández Rodríguez
Keyword(s):  
Financial Markets ◽  
Social Relations ◽  
Critical Role ◽  
Social Groups ◽  
Symbolic Violence ◽  
Personal Bankruptcy ◽  
Economic Relations ◽  
Modern Economy ◽  
Standards Of Living

Despite the process of secularization and modernization, in contemporary societies, the role of sacrifice is still relevant. One of the spaces where sacrifice actually performs a critical role is the realm of modern economy, particularly in the event of a financial crisis. Such crises represent situations defined by an outrageous symbolic violence in which social and economic relations experience drastic transformations, and their victims end up suffering personal bankruptcy, indebtedness, lower standards of living or poverty. Crises show the flagrant domination present in social relations: this is proven in the way crises evolve, when more and more social groups marred by a growing vulnerability are sacrificed to appease financial markets. Inspired by the theoretical framework of the French anthropologist René Girard, our intention is to explore how the hegemonic narrative about the crisis has been developed, highlighting its sacrificial aspects.

Benefit-Cost Analysis for Financial Regulation

2013 ◽  
Vol 103 (3) ◽  
pp. 393-397 ◽  
Author(s):  
Eric Posner ◽  
E. Glen Weyl
Keyword(s):  
Cost Analysis ◽  
Financial Markets ◽  
Financial Regulation ◽  
Allocative Efficiency ◽  
Social Value ◽  
Wall Street ◽  
Benefit Cost Analysis ◽  
The Social ◽  
Benefit Cost ◽  
Rule Making

Calls for benefit-cost analysis in rule-making, based on the Dodd-Frank Wall Street Reform Act, have revealed a paucity of work on allocative efficiency in financial markets. We propose three principles to help fill this gap. First, we highlight the need for quantifying the statistical cost of a crisis to trade off the risk of a crisis against loss of growth during good times. Second, we propose a framework quantifying the social value of price discovery, and highlighting which arbitrages are over- and under-supplied from a social perspective. Finally, we distinguish between insurance benefits and gambling-facilitation harms of market completion.

scholarly journals Organization culture and related organizational outcomes: A theoretical studyÖrgüt kültürü ve ilişkili olduğu örgütsel sonuçlar: Kuramsal bir çalışma

2016 ◽  
Vol 13 (3) ◽  
pp. 4501
Author(s):  
Hüseyin Yolcu
Keyword(s):  
Organizational Culture ◽  
School Culture ◽  
Organizational Behavior ◽  
Social Relationships ◽  
Social Relations ◽  
Theoretical Study ◽  
Organizational Outcomes ◽  
Organization Culture ◽  
Qualitative Studies ◽  
School Organizations

Organizational culture which has emerged as a sub-field of organizational behavior is observed to be decisive on many aspects of behavior such as employees’ motivation, performance, burnout, commitment and socialization. All this shows that organizational culture and related organizational outcomes are multidimensional and multivariate. The research also points to the importance of organizational culture for school organizations that play an important role in the reproduction of social relations. However, it is thought that there is a need to make ethnographic and qualitative studies  pointing out how social relationships are produced within the school culture    in contrast to the studies which fail to go beyond the the mainstream studies. ÖzetÖrgütsel davranışın bir alt çalışma alanı olarak ortaya çıkan örgüt kültürünün, çalışanların motivasyonları, performansları, tükenmişlikleri, bağlılıkları ve sosyalleşmeleri gibi daha birçok davranışları üzerinde belirleyici olduğu gözlenmektedir. Bütün bunlar örgüt kültürü ve ilişkili olduğu örgütsel sonuçların çok boyutlu ve değişkenli olduğunu göstermektedir. Yapılan araştırmalar, toplumsal ilişkilerin yeniden üretiminde önemli bir rol oynayan okul örgütleri için de örgüt kültürünün önemine işaret etmektedir. Bununla birlikte, ana akım çalışmalarının dışına çıkmayan bu çalışmaların aksine okul kültürü içinde toplumsal ilişkilerin nasıl üretildiğini ortaya koyan etnografik ve nitel çalışmalara gerek olduğu düşünülmektedir.

From Main Street to Wall Street

2021 ◽  
Author(s):  
Jesper Rangvid
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Business Cycle ◽  
Financial Markets ◽  
Stock Returns ◽  
Economic Activity ◽  
Wall Street ◽  
Business Cycle Fluctuations ◽  
Main Street ◽  
Long Run

From Main Street to Wall Street examines the relation between the economy and the stock market. It discusses the academic theories and empirical facts, and guides readers through the fascinating interaction between economic activity and financial markets. Itexamines what causes long-run economic growth and shorter-term business-cycle fluctuations and analyses their impact on stock markets. From Main Street to Wall Street also discusses how investors can use knowledge of economic activity and financial markets to formulate expectations to future stock returns. The book relies on data, and figures and tables illustrate arguments and theories in intuitive ways.In the end, From Main Street to Wall Street helps academic scholars and practitioners navigate financial markets by understanding the economy.

scholarly journals COVID-19 Pandemic and Financial Contagion

2020 ◽  
Vol 13 (12) ◽  
pp. 309 ◽  
Author(s):  
Julien Chevallier
Keyword(s):  
Financial Markets ◽  
High Frequency ◽  
Value At Risk ◽  
Data Science ◽  
High Frequency Data ◽  
Financial Contagion ◽  
Frequency Data ◽  
Var Models ◽  
Wall Street ◽  
Original Contribution

The original contribution of this paper is to empirically document the contagion of the Covid-19 on financial markets. We merge databases from Johns Hopkins Coronavirus Center, Oxford-Man Institute Realized Library, NYU Volatility Lab, and St-Louis Federal Reserve Board. We deploy three types of models throughout our experiments: (i) the Susceptible-Infective-Removed (SIR) that predicts the infections’ peak on 2020-03-27; (ii) volatility (GARCH), correlation (DCC), and risk-management (Value-at-Risk (VaR)) models that relate how bears painted Wall Street red; and, (iii) data-science trees algorithms with forward prunning, mosaic plots, and Pythagorean forests that crunch the data on confirmed, deaths, and recovered Covid-19 cases and then tie them to high-frequency data for 31 stock markets.

President, Congress, and the Press Correspondents

1928 ◽  
Vol 22 (4) ◽  
pp. 902-909 ◽  
Author(s):  
J. Frederick Essary
Keyword(s):  
Federal Government ◽  
Social Relations ◽  
National Defense ◽  
Credit System ◽  
Wall Street ◽  
Water Power ◽  
Basic Industry ◽  
Government Power ◽  
The Press ◽  
The Government

It must be apparent to all thoughtful readers of American newspapers that Washington has become the great national news center, perhaps the greatest single news center in all the world. This has come about partly through an ever increasing centralization of power in the federal government, power that extends in a direct line to every basic industry in the nation as well as to our political, our cultural, and our social relations. Also it has come about, in part, through the movement to Washington of literally hundreds of national and international organizations.Practically every interest in our life as a nation responds in a degree to the activities and vibrations of some agency of the government. These interests, either consciously or unconsciously, have learned to listen for their master's voice in Washington. The great banking and credit system, for example, looks to the Federal Reserve Board for its inspiration. Wall Street, sometimes regarded as a sort of super-government, is reacting more and more to federal orders, decrees, or mere gestures. The railroads bend to the will of the Interstate Commerce Commission; the mercantile marine to that of the Shipping Board. Agriculture seeks its paneceas at the hands of Congress. Organized labor lives side by side with that body. Education is yielding to federal supervision, as is highway construction, water-power development, scientific research, foreign trade, commercial practices, and a score of other interests, great or small. There was a time when the federal government concerned itself primarily with the national defense, delivery of the mails, maintenance of navigable rivers and harbors, enforcement of federal statutes, guardianship of the Indians, currency, payment of pensions, control of public lands, and a few minor matters. But that time has passed; indeed, it is almost forgotten.

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