Authors: Robert A. Olsen
Addresses: Decision Research, 1201 Oak Street, Eugene, Oregon 97405, USA
Abstract: It is the position of this paper that recent financial crises have been amplified, if not created, by the sin of professional financial untrustworthiness. Trust is the bedrock of financial behaviour and without trust, financial markets fail as efficient resource allocators. Sin is identified as ethical failure on a communitywide scale. Between 1985 and 2010, the USA has experienced five major financial crises that have explicitly cost the taxpayer more than all wars since Vietnam. This paper identifies the emphasis on transactions fees as the operational vehicle behind these crises and discusses a few potential remedies.
Keywords: financial behaviour; trust; behavioural finance; market efficiency; untrustworthy behaviour; USA; United States; financial crises; ethical failure; ethics; transactions fees.
International Journal of Behavioural Accounting and Finance, 2011 Vol.2 No.3/4, pp.252 - 258
Published online: 20 Jan 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article