tag:blogger.com,1999:blog-1530140329306503392.post1407987384939832065..comments2024-03-19T08:19:45.049-04:00Comments on Crane and Matten blog: Ethics and financial crisisCrane and Mattenhttp://www.blogger.com/profile/13809682169218066019noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1530140329306503392.post-36478919812611767932008-09-24T13:06:00.000-04:002008-09-24T13:06:00.000-04:00Some good points and questions here. Andrew, well ...Some good points and questions here. Andrew, well put. We agree about the need to look at the systematic issues. We blogged earlier on the French trader Jérôme Kerviel at Société Générale (check out the labels on the right). Caminadella - yes it is a difficult balance to get right between ensuring access to essential financial services, but also ensuring that poorer consumers are not exploited, and banks manage their risk appropriately. Good mortgage lenders should be like good microcredit providers - i.e. working with their less advantaged clients to develop their income generating capacities and hone their financial management skills.Crane and Mattenhttps://www.blogger.com/profile/13809682169218066019noreply@blogger.comtag:blogger.com,1999:blog-1530140329306503392.post-26493171550369910432008-09-23T10:03:00.000-04:002008-09-23T10:03:00.000-04:00Question: how is it that sometimes it is responsib...Question: how is it that sometimes it is responsible to lend money only to people who "can who can accommodate regular repayments without getting into financial difficulty" and sometimes it is responsible to extend credit to other people as well (see microcredit)?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1530140329306503392.post-6694354561814627382008-09-19T06:58:00.000-04:002008-09-19T06:58:00.000-04:00Crane and Matten,Unfortunately, there is a natural...Crane and Matten,<BR/><BR/>Unfortunately, there is a natural tendency to put the blame for financial crisis's such as these down to individual behavior, whilst ignoring the systematic issues which may be part of the underlying causes of such events.<BR/><BR/>To be sure, there has been some poor behavior by individuals as well as individual institutions. In addition, American taxpayers have every right to feel a sense of anger and frustration over the fact that they have had to finance huge bailouts whilst CEOs of the institutions concerned leave with very large lump sum payments.<BR/><BR/>But, underlying systematic issues need to be addressed also. A good example is the French bank which recently lost considerable sums due to the misbehavior of a single trader (I'm sorry - the name escapes me at the moment). Yes, the individual was at fault, but the risk management system should have detected and/or prevented such misbehavior.Anonymousnoreply@blogger.com