Thomas H. Stanton
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780199915996
- eISBN:
- 9780199950324
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199915996.003.0003
- Subject:
- Economics and Finance, Financial Economics
Chapter 3 looks at four firms that successfully withstood the crisis: JPMorgan Chase, Goldman Sachs, Wells Fargo, and Toronto Dominion Bank (TD Bank), including their preparation, responses to the ...
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Chapter 3 looks at four firms that successfully withstood the crisis: JPMorgan Chase, Goldman Sachs, Wells Fargo, and Toronto Dominion Bank (TD Bank), including their preparation, responses to the crisis, and effects of the crisis on them. These firms dealt in different ways with the period before the crisis and the crisis itself. They possessed discipline and long-term perspective, robust communications and information systems, capacity to respond effectively to early warning signs, and a process of constructive dialogue between business units and risk managers; each of the successful firms applied these according to its distinctive culture. Unsuccessful firms lacked many or all of these attributes. Unsuccessful firms included those that received massive government infusions of support (Citigroup, Bank of America, Fannie Mae, Freddie Mac, UBS, and AIG), were merged on disadvantageous terms (Bear, Countrywide), or simply went out of business (WaMu, Lehman, IndyMac).Less
Chapter 3 looks at four firms that successfully withstood the crisis: JPMorgan Chase, Goldman Sachs, Wells Fargo, and Toronto Dominion Bank (TD Bank), including their preparation, responses to the crisis, and effects of the crisis on them. These firms dealt in different ways with the period before the crisis and the crisis itself. They possessed discipline and long-term perspective, robust communications and information systems, capacity to respond effectively to early warning signs, and a process of constructive dialogue between business units and risk managers; each of the successful firms applied these according to its distinctive culture. Unsuccessful firms lacked many or all of these attributes. Unsuccessful firms included those that received massive government infusions of support (Citigroup, Bank of America, Fannie Mae, Freddie Mac, UBS, and AIG), were merged on disadvantageous terms (Bear, Countrywide), or simply went out of business (WaMu, Lehman, IndyMac).
Kathryn Lofton
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9780226481937
- eISBN:
- 9780226482125
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226482125.003.0012
- Subject:
- Religion, Religious Studies
This chapter offers an argument for the religious work of corporations through a specific engagement with Goldman Sachs. Common sense may suggest that there is no organization perhaps less religious ...
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This chapter offers an argument for the religious work of corporations through a specific engagement with Goldman Sachs. Common sense may suggest that there is no organization perhaps less religious than Goldman Sachs, described variously by its critics in recent years as a demon, a snake pit, and a vampire squid attacking American finance, the investing public, and the good of global humanity. Yet the labeling of any agency as such a scourge ought immediately tempt the scholar of religion, since one of the grounding assumptions of our work has been that the demarcation of the profane is intimately tied to the elucidation of the sacred. To that end, this chapter considers the Goldman Sachs Group as a case for students of religion. The chapter exposes the connections between the practices of this multinational investment banking firm and accounts of religious thought and practice in the modern period, focusing in particular on the control of information, the focus on institutional survival, the maintenance of relationships, the development of alternative forms of speech, and the commitment to the group above all other identities or alternative epistemologies.Less
This chapter offers an argument for the religious work of corporations through a specific engagement with Goldman Sachs. Common sense may suggest that there is no organization perhaps less religious than Goldman Sachs, described variously by its critics in recent years as a demon, a snake pit, and a vampire squid attacking American finance, the investing public, and the good of global humanity. Yet the labeling of any agency as such a scourge ought immediately tempt the scholar of religion, since one of the grounding assumptions of our work has been that the demarcation of the profane is intimately tied to the elucidation of the sacred. To that end, this chapter considers the Goldman Sachs Group as a case for students of religion. The chapter exposes the connections between the practices of this multinational investment banking firm and accounts of religious thought and practice in the modern period, focusing in particular on the control of information, the focus on institutional survival, the maintenance of relationships, the development of alternative forms of speech, and the commitment to the group above all other identities or alternative epistemologies.
Harold C. Barnett
- Published in print:
- 2015
- Published Online:
- January 2015
- ISBN:
- 9780199331963
- eISBN:
- 9780190214098
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199331963.003.0021
- Subject:
- Economics and Finance, Financial Economics
The residential mortgage-backed securities (MBS) market expanded and collapsed as securitizers packaged increasingly toxic loans into private label MBS. New affordability products and expectation of ...
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The residential mortgage-backed securities (MBS) market expanded and collapsed as securitizers packaged increasingly toxic loans into private label MBS. New affordability products and expectation of continuously rising home prices replaced underwriting of the ability to repay. Securitizers and credit rating agencies misrepresented the risk of default. As a result of the financial crisis of 2007–2008, taxpayers now insure or guarantee 90 percent of loan originations. Public and private investors are seeking compensation through litigation. The Dodd-Frank Act of 2010 produced a rigorous ability to repay qualifying standard as well as liability for noncompliance. A lender “skin in the game” or borrower down payment requirement might also be forthcoming. The new rules could substantially reduce the risk of default while excluding many borrowers and first-time homeowners from the mortgage market. An inclusive private label MBS market has not yet emerged.Less
The residential mortgage-backed securities (MBS) market expanded and collapsed as securitizers packaged increasingly toxic loans into private label MBS. New affordability products and expectation of continuously rising home prices replaced underwriting of the ability to repay. Securitizers and credit rating agencies misrepresented the risk of default. As a result of the financial crisis of 2007–2008, taxpayers now insure or guarantee 90 percent of loan originations. Public and private investors are seeking compensation through litigation. The Dodd-Frank Act of 2010 produced a rigorous ability to repay qualifying standard as well as liability for noncompliance. A lender “skin in the game” or borrower down payment requirement might also be forthcoming. The new rules could substantially reduce the risk of default while excluding many borrowers and first-time homeowners from the mortgage market. An inclusive private label MBS market has not yet emerged.
Kshama V. Kaushik and Kaushik Dutta
- Published in print:
- 2012
- Published Online:
- September 2012
- ISBN:
- 9780198072614
- eISBN:
- 9780199081592
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198072614.003.0008
- Subject:
- Economics and Finance, Economic History
This chapter discusses the modern story of Indian business and economy. After two hundred years of colonial rule and relative economic stagnation, India has started to regain its lost glory in world ...
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This chapter discusses the modern story of Indian business and economy. After two hundred years of colonial rule and relative economic stagnation, India has started to regain its lost glory in world trade. According to Goldman Sachs Economic Research, India's high growth rate since 2003 represents a structural increase rather than simply a cyclical upturn and it projects India's potential or sustainable growth rate at about eight per cent until 2020. This chapter looks at a few sectors that are or can become powerful growth drivers to sustain the economy while providing employment to tens of thousands as they migrate towards a better lifestyle. These include information technology (IT), IT-enabled services, wellness and fitness, sports, pharmaceutical industry, entertainment and media, and automobile and component sectors.Less
This chapter discusses the modern story of Indian business and economy. After two hundred years of colonial rule and relative economic stagnation, India has started to regain its lost glory in world trade. According to Goldman Sachs Economic Research, India's high growth rate since 2003 represents a structural increase rather than simply a cyclical upturn and it projects India's potential or sustainable growth rate at about eight per cent until 2020. This chapter looks at a few sectors that are or can become powerful growth drivers to sustain the economy while providing employment to tens of thousands as they migrate towards a better lifestyle. These include information technology (IT), IT-enabled services, wellness and fitness, sports, pharmaceutical industry, entertainment and media, and automobile and component sectors.
Michael R. Yogg
- Published in print:
- 2014
- Published Online:
- November 2015
- ISBN:
- 9780231167468
- eISBN:
- 9780231537025
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231167468.003.0005
- Subject:
- Economics and Finance, History of Economic Thought
This chapter looks at the leadership styles of mutual fund pioneer, Paul Cabot, and Goldman Sachs’ partner, Sidney Weinberg. Weinberg, who initially worked as a janitor’s assistant in Goldman Sachs, ...
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This chapter looks at the leadership styles of mutual fund pioneer, Paul Cabot, and Goldman Sachs’ partner, Sidney Weinberg. Weinberg, who initially worked as a janitor’s assistant in Goldman Sachs, had impressed the firm with his intelligence and charm—the same assets that qualified Sidney’s appointment as a partner in 1927. In the wake of economic collapse, Sidney found himself overseeing nine corporations. With a response resembling that of Moses, Sidney presented twelve proposals for the more active involvement of his fellow directors in the corporate affairs, despite his lack of experience. Paul, however, used his family’s connection and influence as he made the potential abuses of investment trusts known to the public—similar to what the prophet Jeremiah had done to Judah.Less
This chapter looks at the leadership styles of mutual fund pioneer, Paul Cabot, and Goldman Sachs’ partner, Sidney Weinberg. Weinberg, who initially worked as a janitor’s assistant in Goldman Sachs, had impressed the firm with his intelligence and charm—the same assets that qualified Sidney’s appointment as a partner in 1927. In the wake of economic collapse, Sidney found himself overseeing nine corporations. With a response resembling that of Moses, Sidney presented twelve proposals for the more active involvement of his fellow directors in the corporate affairs, despite his lack of experience. Paul, however, used his family’s connection and influence as he made the potential abuses of investment trusts known to the public—similar to what the prophet Jeremiah had done to Judah.
Kathryn Lofton
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9780226481937
- eISBN:
- 9780226482125
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226482125.003.0011
- Subject:
- Religion, Religious Studies
This chapter offers a history of the concept of “corporate culture.” It begins and concludes with the 2008 financial crisis because respondents to the crisis suggested it was the result of a culture ...
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This chapter offers a history of the concept of “corporate culture.” It begins and concludes with the 2008 financial crisis because respondents to the crisis suggested it was the result of a culture problem. As they emerged from years of fines, layoffs, and reported losses, American bankers repeatedly told their customers that they were working to prevent another crisis through an improvement in their culture. Arguing that corporate culture emerged as a way to humanize the increasing role of corporations in American life, this chapter exposes the anthropological origins and persistent effects of diagnosing “culture” in US corporate life.Less
This chapter offers a history of the concept of “corporate culture.” It begins and concludes with the 2008 financial crisis because respondents to the crisis suggested it was the result of a culture problem. As they emerged from years of fines, layoffs, and reported losses, American bankers repeatedly told their customers that they were working to prevent another crisis through an improvement in their culture. Arguing that corporate culture emerged as a way to humanize the increasing role of corporations in American life, this chapter exposes the anthropological origins and persistent effects of diagnosing “culture” in US corporate life.
Kathryn Lofton
- Published in print:
- 2017
- Published Online:
- May 2018
- ISBN:
- 9780226481937
- eISBN:
- 9780226482125
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226482125.003.0010
- Subject:
- Religion, Religious Studies
This chapter considers how work became so central to contemporary life and how the corporate workplace became a particular site of political freedom and activity. The essay begins by looking at ...
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This chapter considers how work became so central to contemporary life and how the corporate workplace became a particular site of political freedom and activity. The essay begins by looking at several instances of individual acts of conscience by working people: Bowe Bergdahl, Kim Davis, and Edward Snowden, and considers how those individuals experienced punishment for their acts of workplace conscience whereas a corporation, Hobby Lobby, was awarded its religious freedom for a corporate act of conscience. Through a history of the corporation in the United States, this chapter tracks how corporations have become worthy of expanded legal protections and have become increasingly affirmed as locations for self-formation and social incorporation. The chapter points to the way corporations and religions in the US have different legal expectations yet similar conceptual terms for engagement.Less
This chapter considers how work became so central to contemporary life and how the corporate workplace became a particular site of political freedom and activity. The essay begins by looking at several instances of individual acts of conscience by working people: Bowe Bergdahl, Kim Davis, and Edward Snowden, and considers how those individuals experienced punishment for their acts of workplace conscience whereas a corporation, Hobby Lobby, was awarded its religious freedom for a corporate act of conscience. Through a history of the corporation in the United States, this chapter tracks how corporations have become worthy of expanded legal protections and have become increasingly affirmed as locations for self-formation and social incorporation. The chapter points to the way corporations and religions in the US have different legal expectations yet similar conceptual terms for engagement.
Richard Swedberg
- Published in print:
- 2015
- Published Online:
- September 2015
- ISBN:
- 9780198723202
- eISBN:
- 9780191790294
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198723202.003.0010
- Subject:
- Law, Company and Commercial Law, Comparative Law
Contractual networks emerge when contracts of a financial nature are entered among actors such as firms, states, and individuals. Under certain conditions losses in one part of such networks may ...
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Contractual networks emerge when contracts of a financial nature are entered among actors such as firms, states, and individuals. Under certain conditions losses in one part of such networks may spread and cause general damage. This is what happens if the loss is unexpected, as Walter Bagehot has argued. When the financial actors are deposit banks, according to Robert K. Merton, the mechanism of self-fulfilling prophecy also comes into play. This is roughly what took place during the early phase of the euro crisis (2009–2010), with Greece operating as the trigger. The actors relied on so-called proxy signs, which turned out to be wrong, and when this was realized, a crisis erupted in the eurozone. The eurozone countries which, since the introduction of the euro had increasingly been seen as one unit, were now suddenly evaluated in their own right—with chaos in the market as a result.Less
Contractual networks emerge when contracts of a financial nature are entered among actors such as firms, states, and individuals. Under certain conditions losses in one part of such networks may spread and cause general damage. This is what happens if the loss is unexpected, as Walter Bagehot has argued. When the financial actors are deposit banks, according to Robert K. Merton, the mechanism of self-fulfilling prophecy also comes into play. This is roughly what took place during the early phase of the euro crisis (2009–2010), with Greece operating as the trigger. The actors relied on so-called proxy signs, which turned out to be wrong, and when this was realized, a crisis erupted in the eurozone. The eurozone countries which, since the introduction of the euro had increasingly been seen as one unit, were now suddenly evaluated in their own right—with chaos in the market as a result.
Donald L. Kohn, Laurence H. Meyer, and William C. Dudley
- Published in print:
- 2008
- Published Online:
- February 2013
- ISBN:
- 9780226092119
- eISBN:
- 9780226092126
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226092126.003.0011
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter presents a panel discussion among three distinguished practitioners: Governor Donald L. Kohn of the Federal Reserve; former Governor Laurence H. Meyer, now vice chairman of Macroeconomic ...
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This chapter presents a panel discussion among three distinguished practitioners: Governor Donald L. Kohn of the Federal Reserve; former Governor Laurence H. Meyer, now vice chairman of Macroeconomic Advisers LLC; and William C. Dudley, advisory director of Goldman, Sachs & Co. The three panelists share the view that asset markets periodically develop “bubbles,” upward price movements that cannot easily be justified by fundamentals and that often end in sharp declines.Less
This chapter presents a panel discussion among three distinguished practitioners: Governor Donald L. Kohn of the Federal Reserve; former Governor Laurence H. Meyer, now vice chairman of Macroeconomic Advisers LLC; and William C. Dudley, advisory director of Goldman, Sachs & Co. The three panelists share the view that asset markets periodically develop “bubbles,” upward price movements that cannot easily be justified by fundamentals and that often end in sharp declines.
David Callahan
- Published in print:
- 2012
- Published Online:
- January 2013
- ISBN:
- 9780823249602
- eISBN:
- 9780823250752
- Item type:
- chapter
- Publisher:
- Fordham University Press
- DOI:
- 10.5422/fordham/9780823249602.003.0005
- Subject:
- Philosophy, Political Philosophy
When people do bad things to make huge sums of money, the problem is usually not the moral failings of specific individuals as much as the distortions of an economy that offers outsized rewards to ...
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When people do bad things to make huge sums of money, the problem is usually not the moral failings of specific individuals as much as the distortions of an economy that offers outsized rewards to winners. In our economy, people have incentives to behave badly when they're pinched financially or when they perceive that their job—or their future—is at risk. You can see this motive at work in any number of areas where ethical mis- conduct is common, as, for example, in cheating by students. What is needed is Presidential leadership to strengthen American values.Less
When people do bad things to make huge sums of money, the problem is usually not the moral failings of specific individuals as much as the distortions of an economy that offers outsized rewards to winners. In our economy, people have incentives to behave badly when they're pinched financially or when they perceive that their job—or their future—is at risk. You can see this motive at work in any number of areas where ethical mis- conduct is common, as, for example, in cheating by students. What is needed is Presidential leadership to strengthen American values.
