The Moral Accountability of the Financial Industry for the Global Financial Crisis

2018 ◽  
Vol 42 (1) ◽  
pp. 95-116 ◽  
Author(s):  
David Silver
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Financial Industry ◽  
Moral Accountability ◽  
The Global Financial Crisis

scholarly journals EFFECTIVE CRISIS MANAGEMENT FOR ISLAMIC FINANCIAL INDUSTRY AND THE INSTITUTION OF HISBAH: LESSONS FROM GLOBAL FINANCIAL CRISIS

2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Najeeb Zada ◽  
Ahcene Lahsasna ◽  
Muhammad Yusuf Saleem
Keyword(s):  
Financial Crisis ◽  
Moral Hazard ◽  
Crisis Management ◽  
Deposit Insurance ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Islamic Finance ◽  
Financial Industry ◽  
Finance Industry ◽  
The Global Financial Crisis

The recent financial crisis resulted destructive effects on finance industry. Islamic financial industry (IFI) is still naïve and largely untested in the face of a major financial turmoil. Major issues and uncertainties of the insolvency of IFI include the issue of moral hazard, government bailouts, excessive risk taking and deposit insurance. This paper addresses the issue of crisis management in IFI from the perspective of al-Siyasah al-Shar’iyyah and attempts to derive public policy guidelines that are useful in developing a timely and efficient crises management framework for Islamic finance industry. By using qualitative methods, the study found that the global financial crisis resulted in great destruction of financial institution. Although Islamic finance was quite immune to the global crisis as compared to its conventional peer, concerns still exist. It is time that Islamic finance industry learns from the financial woes of the rest of the world. =========================================== Krisis keuangan baru-baru ini mengakibatkan efek destruktif pada industri keuangan. Industri keuangan Islam (IKI) masih naif dan sebagian besar belum teruji dalam menghadapi gejolak keuangan besar. Isu utama dan ketidakpastian dari kebangkrutan IKI meliputi moral hazard, dana talangan pemerintah, pengambilan risiko yang berlebihan dan asuransi deposito. Makalah ini membahas isu manajemen krisis dalam IKI dari perspektif al-Siyasah al-Shar'iyyah dan berusaha mendapatkan pedoman kebijakan publik yang bermanfaat dalam mengembangkan kerangka kerja manajemen krisis yang tepat waktu dan efisien bagi IKI. Dengan menggunakan metode kualitatif, studi ini menemukan bahwa krisis keuangan global mengakibatkan kehancuran besar bagi industri keuangan. Meskipun keuangan Islam cukup kebal terhadap krisis global dibandingkan dengan keuangan konvensional, kekhawatiran masih ada. Sudah saatnya industri keuangan Islam belajar dari krisis keuangan dari seluruh dunia.

Moral Accounting by Organizations: A Process Study of the U.S. Financial Crisis Inquiry Commission

2017 ◽  
Vol 26 (3) ◽  
pp. 303-325 ◽  
Author(s):  
Chad Murphy ◽  
Shubha Patvardhan ◽  
Joel Gehman
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Rhetorical Strategies ◽  
Inductive Approach ◽  
Moral Accountability ◽  
Process Study ◽  
Sentence Level ◽  
The Global Financial Crisis ◽  
The U.S ◽  
Situational Constraints

We take an inductive approach to understanding the aftermath of crises, namely, the process by which organizations come to be viewed as morally accountable (or not) for such events. We studied the transcripts of the 2009 Financial Crisis Inquiry Commission (FCIC) that investigated the global financial crisis of 2007-2008. Our findings revealed a dynamic we call moral accounting, a process whereby supposed wrongdoers encounter narrative and situational constraints that make it difficult, if not impossible, to fully account for the (im)morality of their actions, a position that often induces moments of disorientation that only reinforce the perception of wrongdoing. To push back against such perceptions, supposed wrongdoers use rhetorical strategies and sentence-level linguistic tactics, which can likewise reinforce the perception of wrongdoing. Overall, our model suggests that organizational moral accountability is not simply assigned, accepted, or denied—rather, it is negotiated via an iterative, discursive process.

scholarly journals Individual Accountability in International Economy Policymaking after the Global Financial Crisis

2021 ◽  
Author(s):  
Stefano Pagliari ◽  
Iosif Kovras
Keyword(s):  
International Economic ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Institutional Characteristics ◽  
Policy Recommendations ◽  
Financial Industry ◽  
Government Officials ◽  
Policy Debates ◽  
The Global Financial Crisis ◽  
Individual Accountability

In the aftermath of the global financial crisis, the design of accountability mechanisms has taken on renewed importance in academic and policy debates. Calls for holding individuals whose actions and omissions contributed to the meltdown accountable have gained traction in a number of countries after the crisis. Yet, individual accountability norms are seemingly absent from the international economic agenda in response to crisis. In this paper we address this puzzle by exploring the evolution of two major international organisations, the IMF and the FSB, in bringing accountability following financial crises. Our analysis reveals how these institutions have increasingly incorporated in their toolkit policy recommendations related to the unethical or illegal conduct by government officials of individuals in the financial industry, but these tools were geared almost exclusively towards forward-looking policies designed to deter the reoccurrence of illegal or unethical behavior rather than punishing or scrutinizing past wrongdoing. We argue that the extent to which individual accountability norms permeate the international economic agenda is mediated by the institutional characteristics of the organizations that comprise the international financial regime.

The Global Financial Crisis and White-Collar Crime

Criminology ◽  
2021 ◽  
Author(s):  
Justin Rex ◽  
Spencer Headworth
Keyword(s):  
Financial Crisis ◽  
Criminal Behavior ◽  
Global Financial Crisis ◽  
White Collar Crime ◽  
White Collar ◽  
The United States ◽  
Criminal Prosecution ◽  
Financial Industry ◽  
Wall Street ◽  
The Global Financial Crisis

No senior Wall Street executives were imprisoned for actions that contributed to the global financial crisis. The few criminal prosecutions for management were reserved for executives at small and regional financial firms. This stands in stark contrast to the approximately 1,000 executives jailed after the 1989 savings and loan crisis. It also runs counter to public support for criminal accountability post-crisis as well as the general trend toward criminal social control in the United States. Likewise, few firms faced criminal prosecution. Instead, the primary punishment resulted from civil penalties leveled against individuals and firms, with most of the largest banks paying billions in fines to regulatory agencies and in restitution to victims. Now that the five- or ten-year statute of limitations for the criminal fraud statutes most relevant to questionable pre-crisis behavior has passed, and the political salience and public outcry over financial misdeeds has subsided, the window of opportunity for criminal accountability is closed. Still, the lack of accountability raises important questions for financial regulation, the state of prosecution for white-collar crime, the nature of financial industry influence over politics, and the broader health of US democracy. What role did Wall Street, and the broader financial services industry, play in bringing about the crisis? What behaviors, if any, crossed the line from legitimate business activity intro criminal behavior? Is that distinction easily drawn? And if actors did behave criminally, why did state and/or federal prosecutors not pursue criminal charges more aggressively? What can be learned from countries that used criminal prosecutions more successfully? Even if criminal behavior occurred, is strong prosecution the appropriate remedy to deter future crime and prevent another financial crisis? There is substantial agreement that financial industry behavior contributed to, and amplified the severity of, the crisis. There is, however, much less agreement about whether white-collar crime occurred; if it did, why it went unpunished; and whether criminal punishment is the proper response on moral or practical grounds. The historical and political context for how white-collar crime was (re)framed, how this framing contributed to the deregulation of the financial industry, and the rise of its political power explain how the Wall Street’s behavior was understood, rationalized, and left largely unpunished.

On the formation of a New Paradigm of fiscal Policy

2013 ◽  
pp. 152-158 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Domestic Demand ◽  
Real Economy ◽  
New Paradigm ◽  
Monetary Aggregate ◽  
The Past ◽  
The Global Financial Crisis

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

ASPEK ETIK DAN SISTEMIK DALAM EKONOMI DAN BISNIS ISLAM

ALQALAM ◽  
2014 ◽  
Vol 31 (1) ◽  
pp. 187
Author(s):  
Budi Harsanto
Keyword(s):  
Financial Crisis ◽  
Business Ethics ◽  
Moral Hazard ◽  
Global Financial Crisis ◽  
Financial Institution ◽  
Research Question ◽  
Academic Journals ◽  
Lehman Brothers ◽  
The World ◽  
The Global Financial Crisis

The fall of Enron, Lehman Brothers and other major financial institution in the world make researchers conduct various studies about crisis. The research question in this study is, from Islamic economics and business standpoint, why the global financial crisis can happen repeatedly. The purpose is to contribute ideas regarding Islamic viewpoint linked with the global financial crisis. The methodology used is a theoretical-reflective to various article published in academic journals and other intellectual resources with relevant themes. There are lots of analyses on the causes of the crisis. For discussion purposes, the causes divide into two big parts namely ethics and systemic. Ethics contributed to the crisis by greed and moral hazard as a theme that almost always arises in the study of the global financial crisis. Systemic means that the crisis can only be overcome with a major restructuring of the system. Islamic perspective on these two aspect is diametrically different. At ethics side, there is exist direction to obtain blessing in economics and business activities. At systemic side, there is rule of halal and haram and a set of mechanism of economics system such as the concept of ownership that will early prevent the seeds of crisis. Keywords: Islamic economics and business, business ethics, financial crisis 

Mobilising resiliency in times of economic hardship: Emerging themes in migrant worker remittance payments

2014 ◽  
Vol 7 (2) ◽  
pp. 159-167
Author(s):  
Kevin Garlan
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Migrant Worker ◽  
Economic Hardship ◽  
Priority Areas ◽  
Mobile Payments ◽  
Payment Methods ◽  
The Future ◽  
Emerging Themes ◽  
The Global Financial Crisis

This paper analyses the nexus of the global financial crisis and the remittance markets of Mexico and India, along with introducing new and emerging payment technologies that will help facilitate the growth of remittances worldwide. Overall resiliency is found in most markets but some are impacted differently by economic hardship. With that we also explore the area of emerging payment methods and how they can help nations weather this economic strife. Mobile payments are highlighted as one of the priority areas for the future of transferring monetary funds, and we assess their ability to further facilitate global remittances.

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