Unmet Duties in Managing Financial Safety Nets

Business Ethics Quarterly 21 (1):1-22 (2011)
Officials must understand why and how the public lost confidence in the federal government’s ability to manage financial turmoil. Officials outsourced to private parties responsibility for monitoring and policing the safety-net exposures that were bound to be generated by weaknesses in the securitization process. When the adverse consequences of this imprudent arrangement first emerged, officials claimed for months that the difficulties that short-funded, highly leveraged firms were facing in rolling over debt reflected only a shortage of aggregate liquidity and not individual-firm shortages of economic capital. Then, in September 2008, the president and other officials created an unwise sense of urgency that delays in implementation show to have been greatly exaggerated.That authorities and financiers violated common-law duties of loyalty, competence, and care they owe to taxpayers indicates a massive incentive breakdown in industry and government. Taxpayers deserve a thorough-going reorientation of: (1) how regulatory agencies report on their regulatory performance and back-room interactions with Congress and the Treasury, and (2) the contract structures and performance measures used by the financial industry and its government overseers
Keywords Applied Philosophy  Business and Professional Ethics  Social Science
Categories (categorize this paper)
ISBN(s) 1052-150X  
DOI 10.5840/beq20112111
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history
Request removal from index
Download options
Our Archive

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 26,188
Through your library
References found in this work BETA

Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles
Financial Interests and Research Bias.David B. Resnik - 2000 - Perspectives on Science 8 (3):255-285.
The Effects of “Going Private” on Corporate Financial and Corporate Social Performance.Marguerite Schneider & Alix Valenti - 2008 - Proceedings of the International Association for Business and Society 19:236-245.

Monthly downloads

Added to index


Total downloads

12 ( #369,867 of 2,153,830 )

Recent downloads (6 months)

1 ( #398,274 of 2,153,830 )

How can I increase my downloads?

My notes
Sign in to use this feature

There  are no threads in this forum
Nothing in this forum yet.

Other forums