Misrule of experts? The financial crisis as elite debacle

Economy and Society

Volumn 41, Issue 3, 2012, Pages 360-382

  Engelen, Ewald ^a   Ertürk, Ismail ^b   Froud, Julie ^b   Johal, Sukhdev ^c   Leaver, Adam ^b   Moran, Michael ^d   Williams, Karel ^d  

^a UNIVERSITY OF AMSTERDAM   (Netherlands)

^b UNIVERSITY OF MANCHESTER   (United Kingdom)

^c UNIVERSITY OF LONDON   (United Kingdom)

^d UNIVERSITY OF MANCHESTER   (United Kingdom)

Author keywords

bricolage; elites; experts; financial crisis; financialization; knowledge

Indexed keywords

FINANCIAL CRISIS; FINANCIAL MARKET; FINANCIAL SYSTEM; KNOWLEDGE; POLITICAL ECONOMY;

EID: 84864973152     PISSN: 03085147     EISSN: 14695766     Source Type: Journal    
DOI: 10.1080/03085147.2012.661634     Document Type: Article

References (70)

1. Bebchuk, L., Cohen, A. and Spamann, H. 2010. The wages of failure: Executive compensation at Bear Sterns and Lehman 2000-8. Yale Journal on Regulation, 27: 257-82.
2. Becker, G. 2008. We're not headed for a depression: No, this isn't the crisis that kills capitalism. Wall Street Journal, 7 October
3. Beinart, P. 2010. The Icarus syndrome: A history of American hubris, New York: Harper.
4. Beunza, D. & Stark, D. 2010. Backing out, locking in: Financial models and the social dynamics of arbitrage disasters. New York University Working Paper, March 2010.
5. Blackburn, K. 2008. The sub-prime crisis. New Left Review, 50: 63-106.
6. Booth, J. 2009. Gordon Brown: 'I called for global financial reform ten years ago'. The Times, 26 January
7. Bovens, M. and'tHart, P. 1996. Understanding policy fiascoes, London: Transaction Publishers.
8. Bovens, M., 'tHart, P. & Peters, G. 2001. Success and failure in public governance: A comparative analysis. Cheltenham: Elgar.
9. Brown, G. 2006. Mansion House speech, 21 June. Retrieved fromhttp://www.guardian.co.uk/business/2006/jun/22/politics.economicpolicy
10. Butler, R. 2004. Review of intelligence on weapons of mass destruction: Report of a Committee of Privy Counsellors. Chairman: The Rt Hon Lord Butler of Brockwell. HC898, 2003-4. Retrieved fromhttp://www.butlerreview.org.uk
11. CRESC 2009. An alternative report on UK banking reform. University of Manchester: Centre for Research in Socio-Cultural Change. Retrieved fromhttp://www.cresc.ac.uk/publications/an-alternative-report-on-uk-banking-reform
12. CRESC 2011. Rebalancing the economy (or buyer's remorse). CRESC Working Paper 87. University of Manchester: Centre for Research in Socio-Cultural Change. Retrieved fromhttp://www.cresc.ac.uk/publications/rebalancing-the-economy-or-buyers-remorse
13. Crotty, J. 2007. If financial competition is so intense, why are financial firm profits so high? Reflections on the current Golden Age of finance. Working Paper 134. Political Economy Research Institute, University of Massachusetts Amherst April
14. Das, S. 2010. Swap tango. Eurointelligence, 2 March. Retrieved fromhttp://www.eurointelligence.com/index.php?id=581&tx_ttnews[tt_news]=2712&tx_ttnews[backPid]=752&cHash=b9a5fa817b
15. De La Dehesa, G. 2007. How to avoid further credit and liquidity confidence crises. In A. Felton & C. Reinhart, The first global financial crisis of the 21st century. Centre for Economic Policy Research (CEPR)/Vox.EU
16. De Larosière, J. 2009. The High-Level Group on Financial Supervision in the EU p. 86. Retrieved fromhttp://ec.europa.eu/internal_market/finances/docs/de_larosiere_report_en.pdf
17. Dowd, K. 2009. Moral hazard and the financial crisis. Cato Journal, 29(1): 141-66.
18. Duncan, R. 2009. The corruption of capitalism: A strategy to rebalance the global economy and restore sustainable growth, Hong Kong: CLSA.
19. Dunleavy, P. 1980. Urban political analysis, London: Macmillan.
20. Dunleavy, P. 1995. Policy disasters: Explaining the UK's record. Public Policy and Administration, 10(2): 52-70.
21. Engelen, E., Ertürk, I., Froud, J., Leaver, A. and Williams, K. 2010. Reconceptualizing financial innovation: Frame, conjuncture and bricolage. Economy and Society, 39(1): 33-63.
22. Engelen, E., Ertürk, I., Froud, J., Leaver, A., Moran, M. and Williams, K. 2011. After the great complacence: Financial innovation and the politics of reform, Oxford: Oxford University Press.
23. FSA 2008. The supervision of Northern Rock: A lesson learned review. FSA Internal Audit Division March.
24. Gonzalez-Bailon, S., Jennings, W. & Lodge, M. 2010. The private gains of public office? Corporate rewards of former high public officials in Britain. Working paper. Retrieved fromhttp://manchester.academia.edu/willjennings/Papers/136700/The_Private_Gains_of_Public_Office_Corporate_Networks_and_Rewards_of_Former_High_Public_Officials_in_Britain
25. Gorton, G. 2010. Slapped by the invisible hand: The panic of 2007, Oxford: Oxford University Press.
26. Gowan, P. 2009. Crisis in the heartland: Consequences of the new Wall Street system. New Left Review, 55: 5-29.
27. Guillén, M. & Suárez, S. 2010. The global crisis of 2007-2009: Markets, politics, and organizations. In M. Lounsbury, Markets on trial: The economic sociology of the U.S. financial crisis: Part A pp. 257-79. Research in the Sociology of Organizations, Vol. 30. Bingley: Emerald Group.
28. Halligan, L. 2011 History's lesson is that investment and retail banking must be separate. The Telegraph, Comment. 12 March
29. Haug, E. 2006. The complete guide to options pricing formulas, New York: McGraw-Hill.
30. Haug, E. & Taleb, N. 2009. Why we have never used the Black-Scholes-Merton option pricing formula. Working Paper, February. Retrieved fromhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1012075&rec=1&srcabs=283308
31. Ho, K. 2009. Liquidated: An ethnography of Wall Street, Durham, NC: Duke University Press.
32. Hood, C. and Lodge, M. 2006. Politics of public service bargains, Oxford: Oxford University Press.
33. ICAEW 2009. Evolutions: Changes in financial reporting and audit practice. ICAEW Audit and Assurance Faculty March.
34. Johnson, S. and Kwak, J. 2010. 13 bankers: The Wall Street takeover and the next financial meltdown, New York: Pantheon.
35. King, M. 2007. Speech given at the Mansion House, 20 June Retrieved fromhttp://www.bankofengland.co.uk/publications/speeches/2007/speech313.pdf
36. Konings, M. 2008. Rethinking neoliberalism and the subprime crisis: Beyond the re-regulation agenda. Competition and Change, 13(2): 108-27.
37. Lévi-Strauss, C. 1966. The savage mind. Chicago, IL: University of Chicago Press Translated from La Pensée sauvage, 1962, Paris: Plon.
38. Lewis, M. 2010. The big short: Inside the doomsday machine, London: Allen Lane.
39. MacKenzie, D. 2003. An equation and its worlds: Bricolage, exemplars, disunity and performativity in financial economics. Social Studies of Science, 33(6): 831-68.
40. MacKenzie, D. 2009. Culture gap let toxic instruments thrive. Financial Times, 25 November
41. MacKenzie, D. 2010a. The crisis as a problem in the sociology of knowledge. Unpublished manuscript. Retrieved fromhttp://www.sps.ed.ac.uk/__data/assets/pdf_file/0019/36082/CrisisRevised.pdf
42. MacKenzie, D. 2010b. Unlocking the language of structured securities. Financial Times, 18 August
43. Marquand, D. 1988. The unprincipled society: New demands and old politics, London: Cape.
44. McSmith, A. 2010 Tony Blair gets another new job-in Silicon Valley. The Independent, 26 May.
45. Merton, R. 1995. Financial innovation and the management and regulation of financial institutions. Journal of Banking & Finance, 19 3-4, 461-81
46. Miliband, R. 1969. The state in capitalist society, New York: Basic Books.
47. Milne, A. 2009. The fall of the house of credit: What went wrong in banking and what can be done to repair the damage?, Cambridge: Cambridge University Press.
48. Moran, M. 1986. The politics of banking, 2nd edn, London: Macmillan.
49. Moran, M. 2001. Not steering but drowning: Policy catastrophes and the regulatory state. Political Quarterly, 72(4): 414-27.
50. Moran, M. 2003. The British regulatory state: High modernism and hyper-innovation, Oxford: Oxford University Press.
51. Oakeshott, M. 1962. Rationalism in politics, and other essays, London: Methuen.
52. Office of the Comptroller of the Currency 2009 OCC's Quarterly Report on Bank Trading and Derivatives Activities Fourth Quarter 2009, [online]http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq409.pdf
53. Owen, D. 2007. The hubris syndrome: Bush, Blair and the intoxication of power, London: Politico's.
54. Owen, D. 2008. Hubris syndrome. Clinical Medicine, 8(4): 428-32.
55. Palmer, D. and Maher, M. 2010. The mortgage meltdown as normal accidental wrongdoing. Strategic Organization, 8(1): 83-91.
56. Peck, J. and Tickell, A. 2002. Neoliberalizing space. Antipode, 34(3): 380-404.
57. Perrow, C. 1984. Normal accidents: Living with high-risk technologies, New York: Basic Books.
58. Perrow, C. 2009. The meltdown was not an accident. In: M. Lounsbury & P. M. Hirsch, Markets on trial: The economic sociology of the U.S. financial crisis: Part A. Research in the Sociology of Organizations, Vol. 30. Bingley: Emerald Group pp. 309-330.
59. Pomerleano, M. 2010. Are central banks up to the stability task? Financial Times, 8 December
60. Power, M. 1994. The audit society: Rituals of verification, Oxford: Oxford University Press.
61. Sands, P. 2011. The questions Tony Blair should face at the Chilcot Inquiry. The Guardian, 21 January
62. Scheuer, M. 2007. Imperial hubris: Why the West is losing the war on terror, Washington, DC: Potomac Books.
63. Schneiberg, M. & Bartley, T. 2009. Regulating and redesigning finance: Observations from organizational sociology. In: M. Lounsbury & P. M. Hirsch, Markets on trial: The economic sociology of the US financial crisis, Part A. Research in the Sociology of Organizations, Vol. 30. Bingley: Emerald Group pp. 281-308.
64. Scott, J. 1998. Seeing like a state: How certain schemes to improve the human condition have failed, London, New Haven, CT: Yale University Press.
65. Smith, Y. 2010. Econned: How unenlightened self interest undermined democracy and corrupted capitalism, New York: Palgrave Macmillan.
66. Tett, G. 2010. Silos and silences: Why so few people spotted the problems in complex credit and what that implies for the future. Banque de France, Financial Stability Review, 14, 121-9. Retrieved fromhttp://www.banque-france.fr/gb/publications/telechar/rsf/2010/etude14_rsf_1007.pdf
67. Turner, A. 2009. A regulatory response to the global banking crisis, London: Financial Services Authority.
68. Unterman, A. 2009. Innovative destruction: Structured finance and credit market reform in the bubble era. Hastings Business Law Journal, 5(1): 53-108.
69. Wade, R. 2008. Financial regime change?. New Left Review, 53: 5-21.
70. Walker, D. 2009. A review of corporate governance in UK banks and other financial industry entities: Final recommendations. Retrieved fromhttp://www.acca.co.uk/documents/cdr898.pdf