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date: 17 February 2020

(p. 587) Index

(p. 587) Index

Bold entries refer to figures and tables.Aalbers, M 368, 369
Abolafia, Mitchel 161, 172
accountability:
and financial crises 376, 388–9
and financial crisis (2007–9) 390, 391
and no-fault society 390
and weakening of 18
accounting:
and accounting entity 296, 299–300
and accounting standards 300, 302
and asset-liability approach 297
and auditing 293, 294
and brand accounting 303
as change agent 307, 308
and creative accounting 300
and crisis of confidence in 293–4
and definition of 293, 294
as discipline 304–5
and economics 305–8
and fair value accounting 300–3
and finance, relationship between 298–300, 304–5, 309–10
and financial accounting 293, 295–8
and historical cost convention 296–7
and lack of single optimum method 297–8
and managerial accounting 293
and measurement methods 296–7, 301
and performative character of 308
and political character of 294
as profession 304
and purpose of 296
and social studies of 308–9
and sociologists’ interest in 294
and value-added accounting 309
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) 435, 436
adventure capitalism 180
agency theory 52
and changes in business practices 69
and corporate strategy 56
and debt financing 56, 64–6
and dediversification 62–4
and downsizing 66–8
equity holding among executives 59
and executive compensation 56, 57–62
firm performance 59–60
and industrial focus 62–3
and institutional investors 52, 54, 56–7
ratio of CEO compensation to other employees 61
and rise of 54, 56
risk-taking 59, 60
and shareholder value 52, 70
stock options 57–8, 59
transfer of profits to executives 60–2
AIG 46, 199, 382, 383, 499
Akerlof, George 380, 385, 536–7
Alexander, Jeffrey 384, 388
algorithmic processing 147–8, 174
Alternative Dispute Resolution (ADR) 413–14
alternative finance 413, 415
and alternative currencies 424–5
as big business 414
and challenge to the state 423–4
and difficulty in specifying 418
and illicit and illegal finance 425–6
and meaning of 415
and philanthropy 422–5
and relationship between scholarship and activism 414
and relationship with dominant forms 415–16, 418–19, 423
and religion-based practices 419–21
(p. 588) and rotating savings and credit associations (ROSCAs) 416–19
and social entrepreneurship 422 see also art, financialization of; Islamic banking and finance
Amable, Bruno 41, 48
American Finance Association 548–9
American Institute of Certified Public Accountants (AICPA) 293
American Recovery and Reinvestment Act (USA, 2009) 330
American Stock Exchange 580
analysts, see financial analysts
animal spirits 380, 535, 536
arbitrage 178, 200
and academic debate about 207
and apparent losses 194
and asset-backed securities (ABS) 198–9
and Brazilian bond market example 189–91
and challenge of 207–8
and collateralized debt obligations (CDOs) 198–9
and consequences of failures 188
and credit crisis (2007–8) 197–9
and definition of 187, 243n8
and diversification 196
and economics’ conception of 188–9
and efficient market hypothesis (EMH) 223, 228, 229–30
and Italian bonds 187–8
and lack of academic attention to 188
and market constitution 187
and materiality of 191–3
and merger arbitrage 210–16
and process of 207–8
and regulation 216–17
and requirements of 187
and risk 190–1, 195–6
and self-recursive market hypothesis (SRMH) 231, 232–3
and sociality of 193–7
and speculation 194
and theory-dependence of 193–4 see also trading rooms
Ardener, Shirley 416–17, 417–18
art, financialization of 471–2, 482–3
and art index 475–6, 478
and art investment funds 474–5, 476, 477, 480
and art objects as financial instruments 143, 471
and art price services 476–7
as contested process 473–4
and contradictory definitions of art 473–4
and evolution of art as investment good 472–3
and expert opinion 474–5
and future of 482–3
and limitations of 479–82
and market research companies 478
and opposition to 471–2, 473, 474, 475
and performance of art investments 478–9
and price setting 474
and private equity funds 477–8
and rationalization of data provision 476–7
and role of economists 478–9
and securitization 476
and size of art market 471
and stages of 475–8
and structural barriers to 475
and structured finance 477
Art Market Research 478
Art Trading Fund 473
asset-backed securities (ABS):
and credit crisis (2007–8) 197–9
and tranching of 197–8, 199
asset management funds 21
attentional integration 127, 129–30
Atticus Global 215–16
auction markets 134, 136–8
and characteristics of 135, 140–1
and decision-making 134–5
and financial markets, relationship between 135
and format of 137
and information and communication technologies (ICTs) 147
and objective of 137–8
and pricing 134, 136–8, 139, 141–2
and repackaging 143–4
automation, seefinancial automation
(p. 589) Bagehot, Walter 532–3
balance of payments deficits 324–5
Banking Act (USA, 1933) 364
Banking Act (USA, 1935) 97
Bank of America 340, 348, 350, 382
Bank of England 493
bankruptcy law 504
banks:
and Bretton Woods (BW) internationalism 15–16
and central activity of 342
and consolidation 45
and deregulation 350
and expansion of financial markets 45
and fee-based business model 348
and finance capitalism 36–7
and financial organization 1, 2, 34, 35, 39, 502–3
and government 342
and intermediation 342
and regulation 342
cognitive capture 343
relaxation of 317
and runs on 540
and United States:
consolidation of 45
geographical fragmentation 364
restrictions on 39
Barbalet, Jack 540–1
bargaining, and private-treaty transactions 136
Bear Stearns 340, 348, 349
behavioral economics 536–7, 555
behavioral finance 555–6
benign neglect, and US current account deficits 323–5
Bernanke, B S 119, 532
Black, F 552, 553
Black-Scholes pricing model 145, 146–7, 225, 254, 552
Braunstein, Douglas 382, 383
Braverman, Henry 571
Bretton Woods conference (1944) 28n1
Bretton Woods system:
and dollar as key currency 318–20
and domestic economic management 17
and end of 364–5
and global finance 13, 14, 15–17, 28
and liquidity creation mechanism 321–3
and protection of national economies 15, 17
British Rail Pension Fund 476, 479
Bruegger, Urs 163, 180, 185n8
Burchell, S 308, 309
Burns, Arthur 97, 101
business groups:
and activities of 76
and agent-based model analysis 85–6
and clustering 84–5
and coherence 82
and comparative study of 84–5
and coordination 76
and definition of 75–6
and diversity of 76–7
and economic and political power 75
as emergent phenomena 75, 77, 80
and function-form efficiency 77–9
and genealogical rules of culture 85–8
and horizontal organization 76
and identification of 82–3
and long-term investment horizons 76
and moral economy 89–90
and research on 75
and sociological formation of 84, 85–6
and sociology of financial markets 90–1
and the state 88–9
and structural signatures 80, 81–2, 91
and vertical organization 76
Camerer, Colin 154, 155
capital asset pricing model (CAPM) 229, 254, 299, 302
and art market 479
and criticisms of 552, 553
and financial economics 550, 551–2
capitalism, varieties of:
and Amable's typology 41, 48
and diversity of 48
and financial organization 40–1, 502–3
and political institutions 41–3
Carruthers, B G 36, 480, 481, 483, 568
central banks:
(p. 590) and dangers of empowering technical elite 110–11
and interpretive techniques 95
and technical rationality 94
and tension between technical discourse and expert judgment 94–5
and uncertainty 110 see also Federal Reserve System (USA)
chaebols 88, 89
chart analysis 259–60
Chartered Financial Analyst (CFA) 250
Chicago Board of Trade 172
Chicago Mercantile Exchange (CME) 172
China, and financial markets 450–1, 458
and ‘Chinese characteristics’ 466–7
and futures exchanges 453
commission fees 463, 464, 465
construction of 462–3
Event 327 (1995) 461–2
as flexible vocational units 456–8
local government 462–3
market structure 454, 455
member-exchange relationship 458–9, 460
ownership of 456
subjectivity 462
vertical hierarchy 454–6
and history of 452–3
and methodology of study 451
and political power 465
and ratio of financial assets to GDP 22
and regional clusters 458–63
and state's role 465
and stock exchanges 37
history of 452
market capitalization 452
number of traders 452–3
and two-tier economic structure 453–4
China Financial Futures Exchange (CFFEX) 453
China Securities Regulatory Commission (CSRC) 458
Citibank 340, 348, 350
cities 181–3
Citigroup 477
civil law, and financial organization 35–6, 38
clearing, and financial automation 574–6
Clubb, C 308, 309
clustering:
and business groups 84–5
and China 458–63
Coffey, G 394, 395, 398
cognition, and emotions 160–1
cognitive frames 377
collateralized debt obligations (CDOs), and credit crisis (2007–8) 197–9
commercial papers 332
common law, and financial organization35, 38
communitas 383
Community Reinvestment Act (USA)352, 369
Companies Act (UK, 1844) 502
complexity, and science of 75
composite financial instruments 144
confidence, and role in finance 529–30, 542
and academic neglect of 529
and economists on 530–8
Adam Smith 532
Alan Walters 530–2
behavioral economics 536–7
George Akerlof and Robert Shiller 536–7
Maynard Keynes 531, 533–5
neuroeconomics 537
Walter Bagehot 532–3
and signs 543
and sociologists on 538–42
Jack Barbalet 540–1
Jocelyn Pixley 541
Keith Hart 541–2
Robert K Merton 540
and trust 537–8
Georg Simmel 539–40
Max Weber 538–9
relationship between 530
and types of actors 543
conglomerates 62
Congressional Budget Office (CBO) 330, 335
constrictive individualism 390
consumer credit 366
contagion, and financial crisis (2007–9) 47
control, and financial automation 573–4
coordinated market economies, and financial organization 35, 40, 502–3
(p. 591) Cootner, P H 551, 552
corporate governance 34
and influence of domestic politics 39
and legal systems 38
and political institutions 42–3
corporate ownership:
and shareholder value 45
and social democracy 39–40
Cotation Assistée en Continu (CAC) 579–80
Countrywide Financial 339–40, 348–9
Cowles, Alfred 251, 260, 551
credit:
and financial markets 119–21
and governments’ favoring of expansion of 341–2
and inequality 503–4
credit default obligations (CDOs) 340, 345, 351
credit default swaps (CDS) 199, 340, 351
credit-rating agencies 25
Credit Rating Agency Reform Act (USA, 2006) 284–5
crime, and alternative finance 425–6 see also financial fraud
Darden, J T 371, 372
debt:
and consumer credit 366
and housing market 362
debt financing: and agency theory 64–5
and corporate vulnerability 65–6
and debt-to-equity ratio 65
and defunding pension funds 66
debt servitude 504
decision-making in financial markets 134–5, 165–6
and action moves 159, 161–2
and emotions 155–6, 160–1
and expression moves 158–9, 161, 162, 164
and game theory:
experimental games 154–6
naturally occurring games 156–9
and interactions 152, 153–4
and judgmental biases 155
and model use 164–5
and mutual obligations 163
and price anticipation 163
dediversification:
and agency theory 62–3
and average level of 63
and firm performance 63–4
and job losses 64
deregulation 4, 16, 29n7, 365–6
and banks 350
and financial markets 120
and pressures for 331–2, 364–5
and securitization 367
derivatives:
and fair value accounting 302
and growth of 19
and pricing 145–6
and value of traded 20
Deutsche Bank 349
Deutsche Börse 173
development, and financial markets 44–5
developmental state 37
digital money 424
disintermediation 122, 365, 369, 424–5, 500
dissonance, and trading rooms 211–15
reflexive modeling 212–15, 216, 217
diversification:
and agency theory 62
and arbitrage 196
and business groups 78–9, 81–2
and coherence 82
and repackaging 144
diversity:
and dissonance 205
and innovation 204–5
and performance 203, 204
and problem-solving 204
and regulation 216–17
and trading rooms:
external diversity 210–15
internal diversity 206–10
pattern recognition at the desks 208–9
re-cognition across principles 209–10
and trading strategy 215–16
Dodd-Frank Act (USA, 2010) 285, 390
dollar (US):
and benign neglect 323–5
and dominance in post-Bretton Woods period 320–1
(p. 592) And International Liquidity Creation Mechanism:
seigniorage problem 322
United States’ role 321–3
as intervention currency 319
as key currency in Bretton Woods system 318–20
as reserve currency 319
and threats to status of 335–6
as transaction currency 319
as vehicle currency 319
Doob, Joseph Leo 547, 558n5, 559n7
Douglas, Mary 384–5, 387
Downing Street Project 521–2, 523, 524n1
downsizing 66–8
Duménil, G 359, 365
Dun & Bradstreet 272, 500
Durkheim, É 376, 381, 388, 419
economic development 37, 44–5
economic growth, and financial markets 44, 120
economic management 17
economic performativity theory 147
economics:
and accounting 305–8
and confidence 530–8
and finance 4–5
and trust 537–8 see also financial economics
economy, and cultural construction of 377–8
econophysics 557–8
efficiency, and financial automation 573
efficient market theory 223
and arbitrage 228
and criticisms of 552–3
and definition of 560n22
and difficulties with 228–30
and financial economics 549–50, 551–2
and influence of 225, 228–9
and logic of 226–8
and marginal investors 227
and performativity theory 230
as realist perspective 233
and sociologists’ attitudes towards 224
emerging markets 33, 44–5
emotions:
and cognition 160–1
and confidence and trust 540–1
and decision-making 155–6, 160–1
Employee Retirement Income Security Act (USA, 1974) 54–5
Enron 60, 282, 283, 286, 293, 395, 404
entertainment, and finance as 184n6
Espeland, W 299, 300
ethnicity, and subprime mortgages 370, 371
Eurodollar market 330, 331, 364
European debt crisis (2010–11) 1
exchange traded funds (ETFs) 144
exchange traded markets 123, 138
exchange traded notes (ETNs) 144, 146
execution of trades, and financial automation 578–81
executive compensation 53, 54, 56, 57–62
and changing form of 58
and earnings management 60
and equity holding among executives 59
and firm performance 59–60
and ratio of CEO compensation to other employees 61
and risk-taking 59, 60
and shareholder value 54
and stock options 57–8, 59
and transfer of profits to executives60–2
fair value accounting 300–3
Fama, Eugene 229, 254, 549–50, 551
Fannie Mae (Federal National Mortgage Association) 46, 332, 339, 345, 347–8, 351, 363, 402
Federal Deposit Insurance Corporation (FDIC) 344
Federal Home Loan Bank Act (USA) 363
Federal Home Loan Mortgage Corporation, see Freddie Mac
Federal Housing Administration (FHA) 344
Federal National Mortgage Association, seeFannie Mae
Federal Reserve System (USA) 390
and creation of 96
(p. 593) and Federal Open Market Committee (FOMC) 95
and historical context of control of monetary policy 95–6
bureaucratic control 96–7
market-based control 96
technocratic control 97–8
and inflation policy in 1970s 97
debates over 98–102
dialectic between discourse and judgment 103–5
interpretive techniques 105
rationalizing techniques 105–7
signaling techniques 107–9
and reform of (1935) 97
and responsibilities of 95
and subprime mortgages 351
and technical rationality in inflation policy:
dialectic between discourse and judgment 103–5
interpretive power 109–11
limitations of 109–10
objects of knowledge 102–3
political implications 109
rationalizing techniques 105–7
signaling techniques 107–9
Federal Savings and Loan Insurance Corporation (FSLIC) 344
Fedwire 576
Feller, William 547, 558n6
fiction and finance 180, 379
finance:
and accounting, relationship between298–300, 304–5, 309–10
and bridging of space-time 360
and diverse organization around the world 34, 35–6
and ecologies of 360
and economics 4–5
as entertainment 184n6
and exclusion from circuits of 360
as fourth pillar of economy 119–21
and geographical nature of 359, 360
and globalization 2–3
and historical roots of 1
and inequality 503–4
and national economic systems 36–43
and networked nature of 360
and sociological interest in 491, 568
and sociology of 5
and sociology's perspective on 3–4
and specialized function of 4
and structural organization of 34 see also alternative finance
Financial Accounting Standards Board (USA, FASB) 294, 297
and fair value accounting 302
financial analysts:
and agency theory 56
and analysis as a profession 260–3
conflicts of interest 262–3
ethical codes 261–2
expansion of 264–5
forecasting performance 260–1
knowledge codification 260
legitimacy of 261–2
and certification of 250, 255, 260
and dediversification 63
and historical emergence of 251–5
financial economics 254
financialization 253
fundamental analysis 252–3
globalization of financial professions 254–5
professional bodies 253–4, 254–5
technical analysis 251–2
and number of 250, 264–5
and practices of 255–60
analysts consensuses 258–9
chart analysis 259–60
fundamental analysis 255–9
industry analysis 255–6
information sources 256–7
market analysis 258
stories 258
valuation methods 257–8
and research approaches to 250–1
and role of 250
and shareholder value 264
and theoretical shortcomings in studying 265
Financial Analysts Federation (FAF)253–4, 260
financial assets:
(p. 594) and components of 21
and growth in global value of 22
and growth in stock of 20
and ratio of global financial assets to global GDP 21–2
financial automation 568
and action coordination 570
and definition of 571–2
and drivers of 572
control 573–4
costs 572–3
efficiency 573
surveillance 574
and fragmented innovation 581–2
and impact of 570–1
and incompleteness of 583
and market information 577–8
and nature of technological change 570
and persistence of manual intervention 582–3
and role of technologists and engineers 583
and settlement, clearing and payment572–3, 574–6
and sociology of 569–71
and spheres of financial activity 572
and technological transformation 572
and trade execution 578–81
financial centers 23–7, 28
and alliances and takeovers 27
and competition 14
and consolidation within countries 25–6
and diverse functions of 23
and dominance of leading centers 26
and gateway functions in less powerful countries 26–7
and growth of 23, 26, 27, 44
and incomplete knowledge problem23–5
and increasing power of 360
and specialization 14, 23, 24–5
and traders 181–2
and urban knowledge capital 23
financial crises 385–6, 391, 491
and accountability 376
and animal spirits 380
and characteristics of 376
and cultural construction of the economy 377–8
and dark side of economic life 385
cockfights 385–6, 387
risk behavior 386–7
and ideological shifts 378–9
and liminality 381–2
communitas 383
linguistic shifters 382
structure and anti-structure 383–4
and mania followed by panic 379
and outcomes of 387
and piacular rituals of accountability 388–9
and purity and danger 384–5
and ritual nature of 384
and shaping social time 381
as symbolic action 378–80
as symbolic and ritual events 376
financial crisis (2007–9) 1
and arbitrage 197–9
and causes of 317–18
and causes of mortgage market collapse 353–4
and credit expansion 2
and global glut of liquidity 330
and international contagion 47
and lack of accountability for 390, 391
and mortgage-backed securities 330, 332
and no-fault society 390
and political reactions to 33–4
and ratings agencies 285
and responses to 389–90
and state's role in creating 352–3
and Troubled Asset Relief Program (TARP) 384, 385
and unequal impact of 33
and United States 46–7
Financial Crisis Inquiry Committee (FCIC) 286, 352, 388, 389–90
financial economics 546
and accounting 298–300
and alternatives to:
behavioral finance 555–6
financial market microstructure 554–5
and challenges to dominant paradigm 552–3
(p. 595) econophysics 557–8
January effect 553
size effect 554
social studies of financial markets 556–7
stock price volatility 553
weekend effect 553
winner's curse 553
and consolidation of financial centers 551–2
and constitution of dominant paradigm (1960s & 1970s) 550–2
efficient markets theory 551–2
mean-variance portfolio optimization 551
option pricing model 552
and development of:
capital asset pricing model (CAPM) 550
efficient markets theory 549–50
role of economics 548–50
role of probability theory 547–8
and emergence of 254
financial fraud 393–4
and alternative finance 426
as condition of capitalism 404–5
as crime of interaction 396, 399–401
and criminogenic markets approach 397
and data (in)adequacy 406
and deception through non-disclosure 395
and definition of 394–7, 405–6
and destructive power of 404
and future of 404–6
and identity 397–9
affinity fraud 397–8
identity reframing 398–9
impression management 398–9
and inadequacy of regulatory responses to 404
and insider trading 395–6
and institutions 401–3
government institutions 403
government-linked 402–3
offshore banking 403
pervasiveness in 402
purpose-built for fraud 403
structural conditions 401–2
and Internet 396–7
and legal recognition of 396
and robustness of financial system 405
and scope and cost of 394
and stock options 59, 60
and uncertainty 394
financial history 492, 504–5
and inequality 503–4
and public finance 492–6
impact on household behavior 494–5
sovereign borrowing 493–4
taxation 495–6
and regulation 496–503
constitutive rules 501–2
corporate profitability 498–9
incorporation 501–2
institutional regulation 499
private regulation 499–500
provision of financial information 497–8
ratings agencies 500–1
securities regulation 499
usury 496, 497
Financial Industry Regulatory Authority (FINRA) 266n16
Financial Institutions Reform Recovery and Enforcement Act (USA, 1989) 369
financial instruments:
and art objects as 143
and complexity of 146
and composite instruments 144
and financial markets 121–2, 138
and repackaging 144
and tradability of 143
financialization 143, 206, 253
and definition of 1
financial market microstructure 554–5, 583
financial markets 134
and action structure of 122
and advantages of 122
and architecture of 123–6
coercive response systems 126, 130
exchange traded markets 123
microsociological institutional foundations 124
organization 123–4
over-the-counter (OTC) markets 123, 124
response system 125
scopic media 124–6, 130
(p. 596) and attentional integration 127, 129–30
and auction markets, relationship between 135
and characteristics of 116, 140–1
as collective social form 116
and coordination of 116, 126
and credit 119–21
and decision-making 134–5
and definition of 138
and deregulation 120, 365–6
and difference from primary markets of production economy 116
and diversity of things traded on 33
and economic development 120
and economic growth 44
and exchange-traded markets 123, 138
and financial instruments 121–2, 138
as fourth pillar of economy 119–21
and geographical fragmentation of 569
and growing importance of 1–2, 43–4
and growth of 33, 142
and historical influences on 38
and increased participation in 33
and information and communication technologies (ICTs) 147
and legal systems 35–6, 37–8
and market concepts:
form of exchange 117–18
as institution 118
price discovery mechanism 117
spatial notion of 116–17
and market flow 128
and material cultures of 569
and nature of 121–2
and neoliberalism 44–5
as nontraditional markets 116
and over-the-counter markets 123, 124, 138
and pricing 134, 139
auction pricing 142–3
market practices 141–2
narratives 141–2
and regulation 120, 121, 123
and relationship-initiating/ending time transactions 121–2
and repackaging 143, 144
and social studies of 556–7
and sociology of 90–1
and speculative nature of transactions 122
and the state 36–7, 339
relationship between 341–3
as structured and coordinated cultural form 115
and technological innovation 569
and temporal nature of 128–9
and traders’ role 127–8
and trading floors 127
as virtual societies 173
financial organization 180, 502–3
and diversity and system performance 203–4
financial services, and women 520–2
attitude to risk 521–2
employment in 520–1
sexism in 521
Financial Services Agency (FSA) 443
financial specialization:
and financial centers 23, 24–5
and strategic importance of 14
firm, and change in conception of 300
firm size 81
fixed-price transactions 136
Fligstein, Neil 263, 387
floating exchange rates 331, 332
foreign direct investment (FDI) 20, 333–4
foreign exchange transactions 20, 29n9
France 21, 26
Frankfurt 26
fraud, see financial fraud
Freddie Mac (Federal Home Loan Mortgage Corporation) 46, 332, 339, 345, 347–8, 351
free trade 17, 29n3, 29n4
Friedman, Milton 52, 109, 281, 559n11
Galbraith, J K 394, 397–8, 400, 405, 406
game theory, and decision-making:
experimental games 154–6
naturally occurring games 156–9
Geertz, Clifford 185n7, 376, 377, 378, 380, 385–6, 387, 391, 416, 418
(p. 597) gender and finance 510–11, 523
and risk 516–17, 522 see also women and finance
General Electric (GE) 213–14, 215
Germany:
and bank lending 1
and consolidation of financial centers 26
and financial organization 35, 37, 502–3
and pension funds 21
and shareholder value 46
Ginnie Mae (Government National Mortgage Association) 332, 345–6, 347–8
Glass-Steagall Act (USA, 1933) 39, 317, 363, 387, 389
and repeal of 350
global capital market:
and accountability functions of 18
and cross-border operational field 19
and denationalization of state policy 19
and differences from earlier phases 18
and digitization 18
and formalization and institutionalization of 18
and growth of 19, 20–2
and information and communication technologies (ICTs) 18
and norms of 17–18
privatizing of norm-making 18, 28
and power of 18
global cities, and urban knowledge capital 24–5
global finance 13
and Bretton Woods (BW) internationalism 13, 14, 15–17, 28
and components of 13
and constraints on 23–4
and differentiation from rest of market economy 14
and financial centers 23–7, 28
and growth conditions and patterns 13
and incorporation of national economies 26
and interconnections created by 33
and networked format of 13–14
globalization:
and finance 2–3
and standards homogenization 24
Goffman, Erving 158, 185n7
gold, and key currencies 318–19
gold arbitrage 187
Goldman Sachs 348, 383, 390, 404
Goodman, Roy M 280, 281
Gotham, K F 358, 366, 372
Government National Mortgage Association (Ginnie Mae), see Ginnie Mae
government-sponsored enterprises (GSEs) 347–8 see also Fannie Mae; Freddie Mac
Graham, B 234–6, 242, 252–3
Gramm-Leach-Bliley Act (USA, 1999) 317
Granovetter, M 75, 88–9, 89–90, 400
Great Depression (1930s), and regulation of finance 363–4
Great Society 327, 328, 329, 332, 345
Greece 34
Greenspan, Alan 111, 233, 351, 401
gross domestic product (GDP), and ratio of global financial assets to global GDP 21–2
Grossman, S J 230, 553
Grossmann, P 518
Hacking, I 304, 310
Hart, Keith 541–2
Harvey, David 360, 361, 366
Hayes, S L 434, 439
health-care, and accounting 307
hedge funds 21, 195
herding behavior 214
Hirsch, P 299, 300
historical sociology and finance 491–2, 504–5 see also financial history
Home Mortgage Disclosure Act (USA, 1975) 369
home ownership 361–2 see also mortgage market
homophily 84
Honeywell 213–14, 215
Hong Kong 25, 452, 453, 454–5
Hopwood, A G 298–9, 306–7, 308, 309, 310
housing market:
and debt 362
and geographical nature of 362
and political nature of 362
(p. 598) and spatial separation from mortgage market 366–7 see also mortgage market
identity, and financial fraud 397–9
ideology 377, 378–9
implied volatility 146–7
impression management 398–9
incomplete knowledge 14, 23–4
and financial centers 23–4, 24–5
and meaning of information 25
incorporation, and regulation of 501–2
Indonesia 417, 443
industrial policy, and financial organization 503
inequality:
and distribution of national income 53, 61
and finance 503–4
and growth of 22
and ratio of CEO compensation to other employees 61
and top decile income share (1917–2005) 22
inflation 97
and cost-push inflation 97
and Federal Reserve policy in 1970s 97–109
as priority of macroeconomic policy 365
information:
and meaning of 25
and regulation of provision of 497–8
informational transparency 174
information and communication technologies (ICTs):
and algorithmic processing 174
and auction markets 147
and electronic trading 171–3
and global capital markets 18
and impact on market narratives and practices 147–8
and informational transparency 174
and scopic markets 124–6 see also financial automation
information systems, and financial automation 577–8
innovation:
and diversity 204–5
and fragmented innovation 581–2
and recognizing error 205
and recognizing opportunities 205, 208
institutional investors:
and agency theory 52, 54, 56–7, 69, 70
and central role of 52
and debt financing 65
and downsizing 67
and Employee Retirement Income Security Act (USA, 1974) 54–5
and executive compensation 58
and growth in value of assets 20–1, 55
and hostile takeovers 62–3
and rise of 54
and shareholder value 52, 53
institutionalism 118
institutions:
and financial fraud 401–3
and financial organization 41–3
and regulation of 499
Intel 581
interaction, and financial fraud 399–401
interactions, and decision-making 153–4, 165–6
and action moves 159, 161–2
and emotions 160–1
and expression moves 158–9, 161, 164
and face-to-face interactions 153
and game theory:
experimental games 154–6
naturally occurring games 156–9
and model use 164–5
and mutual obligations 163
and price anticipation 163
and trading decisions 152
intermediation 127, 342
International Accounting Standards Board (IASB) 294
and fair value accounting 301, 302
international monetary regime 318
and American manufacturing industry 333–5
and American policy autonomy 325–30
and dollar as key currency:
benign neglect 323–5
(p. 599) Bretton Woods period 318–20
post-Bretton Woods period 320–1
seigniorage problem 322
and Eurodollar market 330, 331
and liquidity creation mechanism:
seigniorage problem 322
United States’ role 321–3
International Society of Financial Analysts (ISFA) 254–5
international trade, and value of 20
International Valuations Standards Committee (IVSC) 303
Internet, and financial fraud 396–7
Interstate Commerce Commission (ICC) 499
investment banks 45
and mortgage-backed securities 339
and Troubled Asset Relief Program (TARP) 384, 385
Investment Company Act (USA, 1940) 277
investors:
and changed image of 379–80
and women as 515–16
Iran 438, 443, 445n4
Islamic banking and finance 414, 445
and asset-based bonds 420
and charitable lending 434
and contested nature of 431, 433, 434
and definition of 433
and distinctiveness of 431
and diversity of Islamic world 433–4
and financial models 420
and gharar 433, 435
and ijara 420, 439
and interpretations of Shariah 434
and Islamic financial institutions 432
opaque decision-making 436
Shariah supervisory boards 435–6
and modern-day roots of 419, 431–2, 445n3
and mudarabah 420, 438, 439, 443
and murabaha 420, 439–40, 442
and musharaka 420, 438
and productive activity 420
and profit and loss sharing:
infrequent practice of 438–9
as paradigmatic form 438
and riba:
debate over 434
prohibition of 433, 434
and risk-sharing 420
and Shariah-compliant financial products 436–7
debate over insurance products 437
debate over Islamic bonds 437
geographical breakdown of 432
and similarity to conventional finance 439–41
coercive isomorphism 443–4
competitive isomorphism 444
critique of claim 441–3
mimetic processes 444
reasons for 443–4
and social scientists’ disappointment with 437
and structure of Islamic finance industry 435–6
and terrorism 445n2
Islamic Bank of Britain 443
Islamic Development Bank 436
Islamic Fiqh Academy 436
Italy 26, 39, 187–8
Jacobson, T C 252, 253
January effect 553
Japan 22, 35, 37, 46, 77, 502–3
Jasmine Revolution 335–6
Jensen, M C 56, 57, 64, 228, 553
Kahneman, Daniel 551, 555
keiretsu 77
Kerviel, Jérôme 165, 194, 400
Keynes, John Maynard 17, 223, 231, 364, 377, 380, 405
and animal spirits 535
and confidence 531–2, 533–5
and credit 119
and finance motive 119–20
and investment decisions 232
and speculative markets 231
Kibler, N 278, 279
Knorr Cetina, K 104, 163, 177–8, 180, 185n8, 250, 257, 381
labor organization:
and financial organization 39–40
and impact of mobile capital 46
large-value payment systems (LVPS) 576
law and economics, and financial systems 37–8
Leeson, Nick 184n4, 194
Leff Hypothesis 78
legal systems, and financial organization 35–6, 37–8
Lehman Brothers 46, 47, 340, 348, 349, 382
Lévy, D 359, 365
liberal market economies, and financial organization 35, 40, 502
liminality, and financial crises 381–2
communitas 383
linguistic shifters 382
structure and anti-structure 383–4
limited liability 501–2
London Interbank Offered Rate (LIBOR) 198
London Stock Exchange 500, 577, 579
Long-Term Capital Management (LTCM) 188, 196, 200, 207
MacDonald, H 367, 369
MacKenzie, D 90–1, 177, 254
McLean, Bethan 282–3, 285
Madoff, Bernard 164, 393, 397, 401, 404
Malkiel, B G 229–30, 260
manufacturing industry, and declining job-creating capacity 333–5
March, James 204, 208
market:
and concept of 115, 116–18
as form of exchange 117–18
as an institution 118
as mechanism of price discovery 117
and spatial notion of 116–17
and traditional connotations of 119
market efficiency:
and definition of 223
and integrative approach to 223
and perspectives on 223, 234
and reasons for sociologists’ concern with 224–6
and regulation 242
and self-recursive market hypothesis (SRMH) 231–3
and sociological account of 236, 242
intrinsic value and speculation 239–40
prices and theories 240–1
value-based price floor 236–9
weakness of market as learning environment 241
and value investing:
difficulties with 235–6
market information, and financial automation 577–8
market microstructure 554–5, 583
Markowitz, Harry 254, 548, 550, 551
mark to market 194
Married Women's Property Acts (UK) 512
martingale model 549–50, 553
material sociology 189
Maurer, Bill 433, 438, 440, 441, 442, 444
mean-variance portfolio optimization 551
Meckling, W H 56, 57, 64
Mei, Jianping 479, 481
Melville, Herman 393, 404
Mercantile Agency 273, 274–5
mergers and acquisitions (M&A) 62–3, 64
Merrill Lynch 47, 348, 349, 382, 401–2
Merton, R K 467, 540, 550, 551, 567
metaphors, and economic discourse 377
microfinance 414, 416–19
Mihm, S 393, 400, 403, 405
Miller, M H 548, 550, 551
Miller, P 294, 298, 308, 310
Miller, William 99, 101
Miyazaki, H 178, 194
mobile money 424–5
Modigliani, F 548, 551
Molinari, S 278, 279
money:
and bridging of space-time 359, 360
and economic benefits of 359–60
and geographical nature of 358, 359
and mobility of 360–1
and origins of 359
Money is Love movement 421
money market mutual funds 332
Moody, John (p. 601) 276, 500
Moody's 272, 276, 280–1, 500
moral economy, and business groups 89–90
Morck, R 78, 86
Morgan Stanley 348, 349, 390
Morris, R J 510, 516
mortgage, and origin of word 373n1
mortgage-backed securities (MBSs) 330, 344–5, 367
and causes of mortgage market collapse 353–4
and credit default obligations (CDOs) 345
and development of 332, 342–3
and government-sponsored enterprises (GSEs) 347–8
and government's role in creating 339, 346
and investors in 345
and prepayment risk 346
and rise of industrial model of MBS market (1993–2007) 347–50
and tranching of 343, 344–5, 346
and vertical integration of mortgage market 348–9 see also subprime mortgage market
mortgage finance:
and changes in 46
and complexity of 48–9
mortgage market:
and banks 348
and capital mobility 360–1
and causes of meltdown of 353–4
and complex financial instruments 351–2
and concentration of 350, 354
and convergence of 349–50
and Countrywide Financial 348–9
and demand for mortgage finance 364
as engine of global financial system 357
and expansion of 367–8
and fee-based orientation of banks 348
and fragmentation of 347, 364
and geographical nature of 358
and government as main player in 352–3
and government-sponsored enterprises (GSEs) 345–6, 347–8
under Johnson Administration 345–6
and nature of mortgages 361
and origins of 358
and ownership of properties 361
and pervasiveness of 358
and regulation, Great Depression (1930s) 363–4
and role in underpinning financialized capitalism 366–8
and savings and loan (S&L) banks 344, 346–7
and securitization 341, 366–8
and spatial separation from housing market 366–7
and special purpose vehicles (SPVs) 344–5
and state's role in creating financial crisis 352–3
mortgage securitization 340
Moses, Michael 479, 481
municipal bond ratings 280–1
narratives:
and impact of information technology 147–8
and markets 141
National Banking System 493, 496
national economic systems, and financial organization 36–43, 502–3
National Federation of Financial Analysts (NFAA) 253–4
National Housing Act (USA, 1934) 344
nationally recognized statistical rating organizations (NRSROs) 279–81
National Market System (NMS) 573, 581
neo-institutionalism 204, 217
neoliberalism 39, 44–5, 365, 492
Netherlands 21, 22
network analysis 204
networks:
and financial fraud 399–400
and global finance 13–14, 360
neuroeconomics, and trust 537
New York Stock Exchange 172, 173, 499–500, 577–8, 580
no-fault society, and financial crisis (2007–9) 390
(p. 602) norms:
and global capital markets 17–18
and privatizing of norm-making 18, 28
Office of the Comptroller of the Currency (USA, OCC) 277
offshore finance 403
and expansion of 331
O’Hara, Maureen 554, 555
oil crises (1973–4, 1978–9) 320
Olegario, Rowena 273, 274, 275
online trading 171–2
and algorithmic processing 147–8, 174
and emotions 160–1
and interactions 153–4, 159, 161–2
optimal experience 179–80
option pricing 145–6, 552
Organisation for Economic Co-operation and Development (OECD) 20, 35
organizational learning 204, 205
Organization of the Islamic Conference (OIC) 436
Organization of the Petroleum Exporting Countries (OPEC) 318
and oil crises (1973–4, 1978–9) 320
organizations:
as cognitive ecologies 205
and dissonance 205
and diversity and system performance 203–4
and organizational change 204
and organizational ecology 204
outsourcing 334
over-the-counter (OTC) markets 123, 124, 127, 138
oxytocin 537
Pakistan 435, 438, 443, 445n4
paper currency 379
Paris Bourse 579–80
Partnoy, F 276, 279, 283, 285
Paulson, Hank 382, 383
Peau de L’Ours 472
Pecora Hearings 388
Penn Central Transportation Co 278
pension funds:
and growth in value of assets 21
and impact of debt financing 66
and support for agency theory prescriptions 56
pension plans:
and decline in firms’ contributions 68–9
as source of cost-cutting 68–9
pensions, and women 518–20
pension systems, and United States 43, 52, 54–5
performance, and diversity 203, 204
performativity theory 230, 557
and efficient market hypothesis (EMH) 224–5, 230
philanthropy, and alternative finance 422–5
physics, and econophysics 557–8
Pixley, Jocelyn 541
Pocock, J G A 513, 516, 523
Poitras, Geoffrey 251, 254
politics and finance 47–9
and collapse of communism 43–4
and corporate governance 42–3
and financial organization 35–6
historical influences on 38
influence of domestic politics 39–40
labor organization 39–40
and law and economics 37–8
and legal systems 35–6, 37–8
and national economic development 37
and national economic systems 36–43
and neoliberalism 44–5
and political institutions 41–3
and reactions to financial crisis 33–4
and state intervention 37
and structural organization of finance 34
and varieties of capitalism 40–1
Pollard, J 434, 438, 441
Ponzi, Charles 397
Poor, Henry Varnum 276
Poovey, Mary 379, 380
portfolio theory 229, 254, 548
and conglomerates 62
and development of 299, 551–2
power, and global capital markets 18
(p. 603) pricing:
and algorithmic processing 147–8
and auction markets 134, 136–8, 139
and Black-Scholes pricing model 145, 225
and distinction from valuing 148n2
and financial instruments 138, 139–40
volatility 145, 146–7
and financialization 143
and financial markets 134, 139
auction pricing 142–3
and fixed-price transactions 136
and marginal investors 227
and market practices 141–2
and narratives 141–2
and options 145–6
and perspectives on 223, 234
and private-treaty transactions 136
and self-recursive market hypothesis (SRMH):
as constructionist perspective 233
difficulties with 232–3
logic of 231–2
and social generation of 142
and sociological account of 242
intrinsic value and speculation 239–40
prices and theories 240–1
value-based price floor 236–9
weakness of market as learning environment 241
and value investing 234–6 see also efficient market theory; market efficiency
private debt securities, and growth of 21
private equity 76
and art market 477–8
private-treaty transactions 136
privatization 44
probability theory, and financial economics 547–8
problem-solving, and diversity 204
profit, and regulation of 498–9
public finance:
and history of 492–6
and sovereign borrowing 493–5
and taxation 495–6
Quinn, S 341, 345
race:
and housing market 503–4
and subprime mortgages 370, 371
ratings agencies 272–3
as analysts 284
and capital requirements tied to ratings 278–9
and chronology of major events 287
and corporate governance 284
and credit rating process 283
and criticisms of 282–4
and definition of a rating 272
and financial crisis (2007–9) 285
and impact of financial scandals 282–4
and liability for poor outcomes 285
and municipal bond ratings 280–1
and nationally recognized statistical rating organizations (NRSROs):
impact on business model 279–80
as political superpowers 280–1
and nineteenth-century credit reporting 273–4
and nineteenth-century published ratings 274–5
and origins of bond rating agencies 276–7
as participants not reporters 286–8
and profit margins 286
and regulation 500–1
and regulation of 284–5
and regulatory use of ratings in interwar period 277–8
and structured finance 286–8
rationalizing techniques, and technical rationality 105–7
real bills doctrine 97
reflexive modeling 218
and trading rooms 212–15, 216, 217
reflexive reason, and traders 175–7
Regan, Donald 334
Regnault, Jules 557
regulation 496–503
and arbitrage 216–17
and banks 342
cognitive capture 343
relaxation of 317
and constitutive rules 501–2
and corporate profitability 498–9
(p. 604) and diversity 216–17
and financial markets 120, 121, 123, 361
and Great Depression (1930s) 363–4
and incorporation 501–2
and institutional regulation 499
and market efficiency 242
and models 217
and private regulation 499–500
and provision of financial information 497–8
and ratings agencies 284–5, 500–1
and regulatory competition 497
and securities regulation 499
and traders 170
and usury 496, 497
Regulation Q 344, 346, 363, 364, 365
religion, and alternative finance 419–21 see also Islamic banking and finance
repackaging:
and auction markets 143–4
and financial markets 143, 144
and options 145–6
retirement income, and women 518–20
Reuters Monitor system 125, 191
Riegle-Neal Banking Act (USA, 1994) 369
risk:
and gender 516–17, 522
and meaning of 149n10
and pricing financial instruments 145
and stock options 59, 60
and systemic risk 215
and women 516–18, 521–2
Robb, G 511, 512, 513, 514
Roe, Mark 39, 499
rotating savings and credit associations (ROSCAs) 414, 416–19
Russia, and state-business relationship 89
Samers, M 434, 438, 441
Sanders, C 394, 395, 398
Sarbanes-Oxley Act (USA, 2002) 282, 293, 404
saving, and women 519
savings and loan (S&L) banks 344, 346–7, 402
Scholes, Myron S 550, 551, 552, 553
Schumacher Society 414
Schumpeter, J A 530, 538, 567
science and technology studies (STS) 204
scopic media, and financial markets 124–6, 130
screen-based trading 124, 125, 126, 128, 162, 171–2, 173
and demands of continual focus 177–8
and global microstructure 173
and validation of market 173
Securities Act (USA, 1933) 389, 498
securities analysts, see financial analysts
Securities and Exchange Act (USA) 252, 363, 389, 498, 581
Securities and Exchange Commission (SEC) 123, 170, 252, 278, 279, 387, 390, 498, 578, 580–1
securitization:
and art market 476
and deregulation 367
and governments’ pioneering of 341
and mortgage market 366–8
seigniorage 322
settlement, and financial automation 574–6
sexism, in financial services sector 521
shadow banking system 46, 317, 357, 378
Shanghai Futures Exchange (SHFE) 453
Shanghai International Securities Co Ltd (SISCO) 461
Shanghai Shenyin International Securities Ltd (SSIS) 461
Shanghai Stock Exchange 452
shareholder value:
and agency theory 52, 56–7, 70
and changes in business practices 69
and consequences of 53, 57
and debt financing 64–6
and dediversification 62–4
and downsizing 66–8
and financial analysts 264
and industrial focus 62–3
and institutionalization of 263–4
and raising value by cutting pension contributions 68–9
and rise of 1, 45 see also executive compensation
share ownership:
and political identification 43
and stakeholder theory 52
(p. 605) Sharpe, William 254, 550, 551
Shiller, Robert 380, 385, 536–7
short-selling 196–7, 227
Shover, N 394, 395, 398
signaling:
and confidence and trust 543
and technical rationality 107–9
Simmel, Georg 139, 404, 539–40
Sinclair, Timothy 276, 281, 283
Singapore, and ratio of financial assets to GDP 22
size effect, and financial economics 554
Smith, Adam 117, 123, 493, 532
social democracy, and financial organization 35, 39–40
social entrepreneurship, and alternative finance 422
Société Générale 386, 400
sociology of finance 5
sociophysics 557
Solomon Brothers 342, 346
Sorkin, Andrew Ross 381–2, 383
South Korea 37, 88, 89, 502–3
South Sea Bubble 379, 393, 402–3, 504, 513
Sovereign-American Arts Corporation 476
sovereign debt 493–5
space, and traders 181–3
special drawing rights (SDRs) 320
special purpose vehicle (SPVs), and mortgages 344–5
speculation:
and arbitrage 194
and financial markets 122
and women 512–14
stagflation 98–101, 365
stakeholder theory 52
Standard & Poor's 272, 276, 280, 281
standards:
and homogenization of 24
and taxation 495–6
state, the:
and alternative finance 423–4
and banks 342
and Bretton Woods (BW) internationalism 15–17
and business groups 88–9
and continued centrality of 48
and denationalization of state policy 19
and financial markets 36–7, 339, 341–3
and global capital markets 19
and national economic development 37
and public finance 492–6
public borrowing 493–5
taxation 495–6
and regulation 361
and role in creating financial crisis 352–3
and threat of mobile finance 46
state intervention, and financial organization 36–7
Stiglitz, J E 230, 553
Stinchcombe, A L 480, 481, 483
stock options:
and accounting fraud 59, 60
and earnings management 60
and executive compensation 57–8, 59
and firm performance 59–60
and risk-taking 59, 60
and transfer of profits to executives 59, 60–2
structured finance:
and art market 477
and ratings agencies 286–8
subprime mortgage market 340, 357–8
and attraction of 368
and complex financial instruments 351–2
and exploitation of class-monopoly rents 369–71
and government-sponsored enterprises (GSEs) barred from 351
and growth of 350–1
and motivation for creation of 369
and ownership of properties 361–2
and racial concentration of 370, 371
and state's role in creating financial crisis 352–3
and subprime crisis 330, 368–9
surveillance, and financial automation 574
susu associations 417
Suttles, Gerald 377, 379, 388–9
Swedberg, R 116, 117
Sykes, W 519, 520
takeovers 62–3, 64
Tappan, Lewis 273, 275
(p. 606) taxation 495–6
and financial standard-setting 495–6
tax cuts, and United States 326, 327, 328, 329, 330
Tax Reform Act (USA, 1986) 346
technical rationality:
and central banks 94
and dangers of empowering technical elite 110–11
and definition of 94
and Federal Reserve inflation policy in 1970s:
debates over 98–102
dialectic between discourse and judgment 103–5
interpretive techniques 105
rationalizing techniques 105–7
signaling techniques 107–9
and interpretive power 109–11
and interpretive techniques 95, 105
rationalizing techniques 105–7
signaling techniques 107–9
and limitations to 109–10
and objects of knowledge 102–3
and political implications 109
and uncertainty 110
technology:
and benefits of 567
and financial markets 567–8, 569
and nature of technological change 570
telegraph, and impact of 569, 570
telephone, as medium of financial fraud 396
time:
and culture's capacity to shape 381
and traders 177–81
trade execution, and financial automation 578–81
traders:
and adventure capitalism 180
and commitment to the market 180–1
and criticisms of 169
and discipline 179
and fictional depictions 180
and financial markets 127–8
and independent traders 171
and institutional settings 170
and lack of demographic information about 170
and masculine virtues 178, 180
and moral allegiance 180–1
and nonproprietary traders 171
and objectification of the market 175
and optimal experience 179
and physical skills 192
and proprietary traders 171
and reasons for studying 169, 170, 183
and reflexive reason 175–7
and regulation of 170
and skills of 171
and social inclusion 182
and space 181–3
financial centers 181–2
as symbols 180
and techniques for understanding price patterns 175–6
information sources 176–7
physical location 177
and techniques of 171
and technologies used by 171–5
algorithmic processing 174
electronic trading 171–3
global microstructure 173
informational transparency 174
search for new 174
virtual societies 173
and time 177–81
arbitrage technique 178
demands of continual focus 177–8
pressures of 178
and total absorption in the zone 179 see also decision-making in financial markets
trading rooms 206
and cognitive challenges 205, 208
recognizing error 205
recognizing opportunities 205
and external diversity 210–15
and externally introduced dissonance 211–15
reflexive modeling 212–15, 216, 217
(p. 607) and imagery used in 386
and internal diversity 206
desks 209
pattern recognition at the desks 208–9
re-cognition across principles 209–10
and organization of 208–9
and trading strategy 215–16
Troubled Asset Relief Program (TARP) 384, 385
trust:
and arbitrage 195
and confidence 537–8
relationship between 530
and economists on 537–8
and neuroeconomics 537
and signs 543
and sociologists on 538–42
Georg Simmel 539–40
Jack Barbalet 540–1
Jocelyn Pixley 541
Keith Hart 541–2
Max Weber 538–9
Robert K Merton 540
and types of actors 543 see also confidence, and role in finance
Truth in Lending Act (USA, 1968) 498
Turner, Victor 381, 387
Tversky, Amos 536, 555
Tyco 60, 282
uncertainty:
and financial fraud 394
and technical rationality 110
unemployment, and dediversification 64
Uniform Small Loan Law (USA) 498
United Arab Emirates 443
United Kingdom:
and corporate finance 2
and financial markets, development of 36
and pension funds 21
and political reactions to financial crisis 33–4
United States:
and banks:
consolidation of 45
geographical fragmentation 364
restrictions on 39
and Bretton Woods (BW) internationalism 15
and consolidation of financial centers 25–6
and corporate finance 2
and current account deficits, benign neglect 323–5
and defense and war spending 326, 328–9, 330
and Federal debts 328
Bush Administration 329–30
Johnson Administration 328–9, 332
Obama Administration 330
Reagan Administration 329
and financial crisis (2007–9) 46–7
causes of 317–18
and financial markets 1–2
development of 120
and financial organization 35, 37, 502
changes in 38–9
influence of domestic politics 39
reorganization of 45–6
and financial regulation, Great Depression (1930s) 363–4
and foreign direct investment by 333–4
and institutional investors:
growth in value of assets 21, 55
rise of 54
and international liquidity creation mechanism 321–3
seigniorage problem 322
and investment banks 45
and manufacturing, declining job-creating capacity of 333–5
and monetary policy, history of 95–6
bureaucratic control 96–7
market-based control 96
technocratic control 97–8
and pension funds, growth in value of assets 21
and pension system 43, 52
Employee Retirement Income Security Act (1974) 54–5
growth in defined contribution plans 55
and policy autonomy 325–6
global strategic objectives 326
social spending 327–8
tax cuts 327
(p. 608) and political reactions to financial crisis 33
and ratio of financial assets to GDP 22
and shareholder value 45
and social spending 327–8, 329
and takeovers 45
urban knowledge capital 23, 24–5
Useem, Michael 62, 263
Usmani, M T 438, 440, 442, 446n12
usury, and regulation of 496, 497
valuation methods:
and intrinsic value 257–8
and relative value 258
value chain production 334
value investing 223, 226
and difficulties with 235–6
and logic of 234–5
and value-based price floor 236–9
varieties of capitalism, and financial organization 40–1, 502–3
venture capital 76
Victorian values 515
VISA 424
Vogel, F E 434, 439
volatility:
and pricing of financial instruments 146–7
and stock prices 553
and traded commodity 147
Volcker, Paul 101, 102, 105, 106, 107, 109, 334
VXX 146, 150n18
Walters, Alan 530–2
war, and financial markets 36
War Profits Control Act (USA) 499
Washington Mutual 46, 340, 349
Weber, Max 294, 538–9
weekend effect 553
Wells Fargo 340, 348
Whitley, R 298, 299
winner's curse 553
Wolfenzon, D 78, 86
women, and Wall Street 182–3
women and finance 510–11, 523
and financial services 520–2
and historical background 511–12
as investors 515–16
and pensions 518–20
and risk 516–18
and saving 519
as speculators 512–14
WorldCom 60, 282, 293, 395, 404
Wyly, E K 361–2, 366, 369, 371, 372
Yeung, B 78, 86
Zaloom, C 180, 192, 386
Zuckerman, E W 233, 256, 264