Campbell verduyn professional authority after the global financial crisis; defending mammon in anglo america (2017)

Building a Sustainable Political Economy: SPERI Research & Policy Series Editors Colin Hay SPERI University of Sheffield Sheffield United Kingdom Anthony Payne SPERI University of Sheffield Sheffield United Kingdom The Sheffield Political Economy Research Institute (SPERI) is an innovation in higher education research and outreach It brings together leading international researchers in the social sciences, policy makers, journalists and opinion formers to reassess and develop proposals in response to the political and economic issues posed by the current combination of financial crisis, shifting economic power and environmental threat Building a Sustainable Political Economy: SPERI Research & Policy will serve as a key outlet for SPERI’s published work Each title will summarise and disseminate to an academic and postgraduate student audience, as well as directly to policy-makers and journalists, key policy-oriented research findings designed to further the development of a more sustainable future for the national, regional and world economy following the global financial crisis It takes a holistic and interdisciplinary view of political economy in which the local, national, regional and global interact at all times and in complex ways The SPERI research agenda, and hence the focus of the series, seeks to explore the core economic and political questions that require us to develop a new sustainable model of political economy at all times and in complex ways More information about this series at http://www.springer.com/series/14879 Malcolm Campbell-Verduyn Professional Authority After the Global Financial Crisis Defending Mammon in Anglo-America Malcolm Campbell-Verduyn Balsillie School of International Affairs Waterloo, Ontario, Canada Building a Sustainable Political Economy: SPERI Research & Policy ISBN 978-3-319-52781-9 ISBN 978-3-319-52782-6 (eBook) DOI 10.1007/978-3-319-52782-6 Library of Congress Control Number: 2017941617 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made.The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover illustration: Pattern adapted from an Indian cotton print produced in the 19th century Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Parts of Chapters and originally appeared as “Sustainability and the Renewed Semi-Professionalism of Leading Anglo-American Financial Services Firms”, Malcolm Campbell-Verduyn, Competition and Change, vol 19, no pp 355-373 Copyright © 2015 Reprinted by Permission of SAGE Publications, Ltd sagepub.co.uk/journalsPermissions.nav Parts of Chapters and originally appeared as “Merely TINCering Around: The Shifting Private Authority of the Technology, Information and News Corporations” De Gruyter [Business and Politics 18, no 2: 143-170.], Walter De Gruyter GmbH Berlin Boston, [2016] Copyright and all rights reserved Material from this publication has been used with the permission of Walter De Gruyter GmbH Parts of Chapters and originally appeared as “Moral Economese of Scale: Financial Crisis and the Persistent Authority of Economists” Malcolm Campbell-Verduyn, Global Society 30, no 4, pp 507-530 © University of Kent Reprinted by permission of Taylor & Francis Ltd, www.tandfonline.com on behalf of University of Kent ACKNOWLEDGEMENTS Sincere thanks are due to Christina Brian and James Safford at Palgrave Macmillan as well as to the SPERI series editors Anthony Payne and Colin Hay for supporting the various proposals for this book; to Brendan Ouellette for guidance in navigating the world of book publishing; to Eric Helleiner for careful and constructive comments on the manuscript; as well as to André Broome and Leonard Seabrooke for the extensive feedback provided at the 2016 Warwick Manuscript Development Session Particular debts of gratitude are owed to Tony Porter for invaluable advice at all stages of this project; to the professionals interviewed for their time and insights; to the Social Science and Humanities Council of Canada for the financial support that enabled this book to be researched and written; to Conny Steenman-Marcusse for enabling significant portions of this book to be written in an extremely inspiring setting at BBCC; to my parents for sparking and continually supporting my scholarly interests; and last, but most certainly not least, to my partner Lorette Steenman for her everyday encouragement, love, and vital stress on balance This book is dedicated to the memories of my grandmothers, Claire Campbell and Stony Verduyn vii CONTENTS Professional Authority and Anglo-American Finance in Crisis Professional Authority in Anglo-American Finance The Professionals Examined The Explicit Ethical Emphasis Understanding the Explicit Ethical Emphasis Limits of the Enhanced Ethical Emphasis The Data Underlying This Book Summary, Contribution, and Audiences Notes 11 15 16 17 The Dynamism of Authority in Global Governance Dynamic Processes of Authority Identities and the (Self-)Legitimation of Power Discourse, Agency, and Structure Exercising Authority in Global Governance Authority Beyond the State Public and Private Practices Professional Authority in Global Financial Governance Chapter Summary Notes 19 19 20 22 23 24 26 27 31 32 ix x CONTENTS The Dynamic Authority of Leading Financial Services Providers The Pre-crisis Authority of Financial Services Providers Financial Crisis and Contestations of Authority Defending Mammon: Re-legitimating Power in the Aftermath of Crisis The Enhanced Ethical Emphasis of Leading Accounting Firms The Enhanced Ethical Emphasis of Leading Credit Rating Agencies The Enhanced Ethical Emphasis of Leading TINCs Self-legitimation Chapter Summary Notes 33 34 38 47 47 51 55 58 62 62 The Dynamic Authority of Economists The Pre-crisis Authority of Orthodox Economists Economese and Expert Identities Liberal Moralities, Backgrounded Financial Crisis and Contestations of Authority Expert Identities in Crisis Liberal Moralities in Crisis Defending Mammon: Re-legitimating Power in the Aftermath of Crisis Rediscovering Wealth Distribution Rediscovering the Environment Self-legitimation Chapter Summary Notes 65 66 66 67 69 69 73 The Dynamic Authority of Advisories The Pre-Crisis Authority of Advisories The Expert Identities of Actuaries The Expert Identities of Lawyers and Legal Groups The Expert Identities of Consultancies Financial Crisis and Contestations of Authority The Expert Identities of Actuaries in Crisis The Expert Identities of Legal Firms in Crisis The Expert Identities of Consultants in Crisis 83 85 85 86 88 89 90 91 93 75 76 78 79 80 81 CONTENTS Defending Mammon: Re-Legitimating Power in the Aftermath of Crisis The Enhanced Ethical Emphasis of Leading Actuaries The Enhanced Ethical Emphasis of Leading Legal Firms The Enhanced Ethical Emphasis of Leading Consultancies Self-Legitimation Chapter Summary Notes Continuities and Limits Limits to Change The Persistence of Pre-crisis Liberal Market Values The Persistence of Pre-crisis Expert Knowledge Continuity, Instability, and the Wider Limits to Professional Authority Flawed Predictions, Descriptions, and Solutions Identification with Volatility and Continuing Challenges Islamic Finance, Volatility, and Professional Authority Sustainability, Volatility, and Professional Authority Chapter Summary Notes xi 94 95 96 98 99 102 103 105 106 106 112 115 115 120 120 122 125 126 Professional Authority in Anglo-American Finance and Beyond The Dynamic Underpinnings of Professional Authority Implications and Further Questions Was Professional Authority Restored? How Generalisable is the Enhanced Ethical Emphasis? How Desirable is the Enhanced Ethical Emphasis? 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Business Unity in Regulatory Politics and the Special Place of Finance.” Regulation & Governance, 11 (1): 3–23 Zarlowski, P 2007 “Managing Corporate Social Responsibility in a National Context: The Case of Social Rating Agencies in France” In Managing Corporate Social Responsibility in Action: Talking, Doing and Measuring, F Den Hond, F de Bakker, and P Neergaad, eds., Aldershot: Ashgate pp 167–186 Zingales, Luigi 2013 “Preventing Economists’ Capture” In Daniel Carpenter and David Moss, eds., Preventing Regulatory Capture: Special Interest Influence and How to Limit It New York: Cambridge University Press pp 124–151 INDEX A Accountants, 6, 36, 48, 51, 60, 61, 84, 88, 111, 138 Accounting carbon, 49 natural capital, 60, 61, 123 Sustainable, 59 triple bottom line, 49 Accounting and Auditing Organization for Islamic Financial Institutions, 51, 111 Accreditation, 51 Actuaries as ‘heroes’, 86 and climate change, 95, 96 The Actuary, 15, 91, 95, 101 Advising environmental, 98 financial, 65, 92, 94 Agency, double, 88, 92 Allen and Overy, Global Islamic Finance Group; Islamic finance practice, 98 American Academy of Actuaries, focus on sustainability, 101 American Bar Association, Energy and Environmental Markets and Finance committee, 100 Climate Change, Sustainable Development, and Ecosystems committee, 100 American Economic Association, 72, 79 American Institute of Certified Professional Accountants, 48, 111 American International Group (AIG), 74, 84, 91, 96, 98, 123 Anglo-America, 1–17, 28–31, 33–37, 41–51, 55, 57, 59, 60, 61, 63n20, 65, 66, 74–75, 77, 83, 85–88, 91–94, 96, 97, 99, 100, 106, 108–116, 119–125, 129–138 Archbishop of Canterbury, Arthur Andersen, 41 Asian Financial Crisis, 38, 43, 75 Asset, Asset-backed securities; returns, 39, 95 Association of Chartered Certified Accountants, 60 AT Kearney, 6, 99, 109, 110 Auditor, auditor rotation, 42–43, 50 Augar, Philip, Austerity, 10, 118 Authority, attributes ‘in’ and ‘an’, 23, 24, 26 illicit, 25 © The Author(s) 2017 M Campbell-Verduyn, Professional Authority After the Global Financial Crisis, Building a Sustainable Political Economy: SPERI Research & Policy, DOI 10.1007/978-3-319-52782-6 203 204 INDEX Authority, attributes (cont.) market, 25, 26 moral, 14, 20, 23 private authority, 24, 25, 26, 27 process, 20, 22, 24 B Bailout, 91 Baker, Andrew, 3, 6, 21, 97–98, 110, 122–123 Bank of America, 126n3 Bank of England, 8, 75 Bankruptcy, see Solvency Banks Icelandic, 42 shadow banks, 45 systems, 51 ‘too big to fail’, 38, 74, 113 See also Systemically important financial institutions Barclays, 103n9, 116 Barker, Rodney, 21 Bear Stearns, 42 Beetham, David, 20 Beliefs, 19, 20, 22, 129 Benchmarking, 56, 59, 89 Bergmann, Jörg, 106 Best, Jacqueline, 3, 8, 20, 26–27, 29, 52, 69, 98, 110 Bettis, Oliver, 6, 95, 101 Bible, Bieler, Andreas, 23 Big Four, Blair, Tony, 103n5 Bloomberg, Michael, 5, 46, 52, 55–58, 77, 97, 110, 111, 123, 126n4 Bonds, green, 54, 56, 96 Bowman, Andrew, 10, 88, 109, 110 Brown Rudnick, 100 Brubaker, Rogers, 21 Buffett, Warren, 44 Buiter, William, 73 Bureaucrats, see Government, officials Bureau of National Affairs, 103n1 Business strategy, 138 C Cameron, Angus, Capital adequacy standards, 69 capital flows, 37 capital markets, 34, 52, 98, 125 natural, 60, 61, 123 Capitalism, global spread, 8, 10, 14, 36, 77, 87, 117, 132 Carbon, 49, 54–57, 59, 60, 97, 100, 108–110, 122–123 Carbon, bubble Carbon Risk Valuation Tool, 56 credits, 56, 59, 122, 123 emissions, 50, 54, 56, 59 ethical, 54 funds, 54 liabilities, 53 Carbon Tracker, 60 Carney, Mark, 8, 80 Carstensen, Martin, 30 Casualty Actuarial Society, Climate Change Committee, 102 Chartered Institute of Management Accountants, 60 Chemistry, 67 Chwieroth, Jeffry, 4, 9, 17n2, 65, 69 Citigroup, 94, 103n8 Civil society, 3, 8, 27 Clark, Gordon, 37, 45, 84, 89 Clifford Chance, Islamic finance practice, 97 INDEX Climate Change, Copenhagen Summit, 60 Climate Disclosure Standards Board, 126n4 Clinton, Hillary, 73, 123 Coase, Ronald, 73 Collateralised debt obligations, 41, 91 Colonial BancGroup, 42 Commodities, price rise, 99 Competition, market competition, 6, 7, 134 professional competition, Confidentiality, 8, 36 Conflict of Interest, 79 Constructivism ‘hard,’ 22, 23 ‘soft,’ 23 Consultants, see Consulting, firms Consulting, firms as merchants of meaning, 89 as money wasters, 93 sustainability strategy, 98, 99 unethical practices, 93 Consultocracy, 88 Cooper, Frederick, 21 CoreRatings, 52 Credit, assessment, see Credit rating; Carbon Credit Default Swaps, 90 Credit Rating Agencies, 5, 33, 38, 51 Credit ratings, composition cascades, 39 Corporate, 34, 35, 54 inflation, 70, 71 shopping, 59 sovereign, 53, 54 Crisis, identity, 90 Culture, ethical culture, Cutler, Claire, 24, 25, 27, 83, 88 205 D Dale, Richard, 71 Data, deluge historical, 69, 72, 90, 95 predictive, 72, 86 proprietary, 46, 56 sustainability, 55 Davis Polk & Wardwell, 97 Debt, 41, 42, 51–52, 91, 98, 118, 121, 123 Default, sub-prime mortgages, 72 Deloitte and Touche (D&T), 42, 51 DeLong, Bradford, 118 Deregulation, 68 Derivatives, as weapons of mass destruction carbon, 122 role in financial crisis, 44, 109 shariah-compliant, 111 Dezalay, Yves, 87–88 Diplomacy, 65 Discourse, in constructivism everyday, 26 in finance, 11 and identity, 19, 23, 30 Documentation, legal, 16, 87, 123 Dodd-Frank Act, 40 Double Movement, Dow Jones, 5, 43, 46, 55, 57 E Econocracy, 65 Economese, moral, 66, 78, 79, 80, 81, 124 Economic growth, see Liberal; Shortterm; Long-term Economics, environmental, 107 spring, 113 The Economist, 16, 68, 72, 73 Economists, ‘caged’ 206 INDEX Economists, ‘caged’ (cont.) heterodox, 5, 17n2, 67, 69, 72, 113, 114 prominent orthodox, 5, 66, 107, 117 right and left wing, 79, 80 ‘wild’, 80 Efficiency, market, 38, 45, 69 resource allocation, 109 Efficient Market Hypothesis, 38, 68 Emissions, 54, 56, 59, 60, 61, 97, 100, 107, 109, 110, 122–123 Energy, 16, 50, 53, 54, 55, 57, 97, 100, 101 Engelen, Ewald, 40, 65, 71, 113, 114, 133 Engels, Friedrich, 66 Engineering, legal, 92 Engineers, 88 Enron, 38, 41, 43, 92 Environmental finance, 14, 53–59, 98, 100, 124 Equality, 8, 14, 38, 76, 125, 132, 139 Equations, 66, 69, 70, 124 Ethical Finance Innovation Challenge and Awards, 56 Ethical issues macro-level, 8, 13, 14, 31, 33, 47, 54, 55, 57, 58, 59, 61, 66, 75, 77, 78, 79, 80, 81, 85, 88, 94, 96, 98, 105, 106, 107, 111, 114, 130, 131, 135, 137, 138, 139 micro-level, 8, 28, 31, 36, 79, 130, 134 Ethics, backgrounded, 36, 67, 129 employee training, 54 European Commission, 43 European Union, British referendum on, 40, 119 Excelgate, 118 Exchanges, commercial, 87 stock, 75 Expert knowledge, role in professionalism Contestation, 16, 81, 137 Idiosyncracy, 10, 87 Experts, see Specialists F Fairclough, Norman, 15 Fairness, 8, 38, 58, 75, 88 Fama, Eugene, 68, 113 Fannie Mae, 71 Federal Reserve, 8, 68, 74, 77, 113 Feldstein, martin, 74, 76, 77 Financial Accounting Organization for Islamic Banks and Financial Institutions, 126n6 Financial Accounting Standards Board, 61 Financial analysis, 36 Financial District, Financial instability, 31, 70, 96, 109, 114, 130 hypothesis, 114 Financial instruments, 39, 43, 44, 59, 63n14, 71, 90, 91, 109, 121, 122 Mispricing, 91 synthetic, 39, 40, 43 toxic, 40, 44 Financialisation, 117 Financial reporting, 48, 61, 111, 122 sustainable, 48, 61, 111 Financial reserves, 86 Financial services industry, 8, 89, 90, 133, 134 Financial Stability Forum, Financial Times, 9, 16, 94, 116, 126n4 Financial transactions, 37 Financiers, 1, 9, 120, 136 Fitch, 59, 121 Fiscal, multiplier, 10, 118 INDEX 207 Forecasts, see Predictions Foreclosures, 119 Fossil fuels, see Greenhouse Gas Foucault, Michel, 12 Fourcade, Marion, 17, 29, 65–67, 70, 107, 109 Fraud, 42, 45, 70, 94 Freddie Mac, 71 Greece, 118 Greed, 25, 48, 134 Green Growth Action Alliance, 57 Greenhouse Gas, see Carbon; Emissions; Profiles Green New Deal, 10 Greenspan, Alan, 5, 68, 107, 113 Guesstimation, 42 G Gambling, 28 Garth, Bryant, 28, 87, 88 Genealogy, three-steps, 13, 129 Gheciu, Alexandra, 26, 27, 29 Giddens, Anthony, 21, 28 Global Finance complexity, 28, 92 core, Mainstream, 14, 112, 123, 139 systemic interconnections, 54, 71, 76, 125 Global Financial Crisis causes and origins, 44 costs, 74 Global Initiative for Sustainability Ratings, 59 Global Political Economy, 4, 83 Governance; discipline global governance, 4, 11, 17, 19–31, 65, 129 rule-making, 27 self-governance, 7, 14, 15, 27, 28, 29, 58, 60, 74, 75, 100, 105, 106, 109–112, 121, 122, 131, 134 shadow, 89 social organisation, 12 Government, officials, 65, 84 Grameen Foundation, 53 Grant Thornton, 62n5 Great Moderation, 71, 113 H Haldane, Andrew, 5, 71, 77, 78, 133 Haufler, Virginia, 24, 26 Healy, Kieran, 29, 67, 107, 109 Hedge Funds, 39 High speed trading, 46 Hiss, Stefanie, 33, 111, 126n4 HSBC, 116, 126n3 Hubris, 2, 72 I Ideas, 4, 12, 14, 17n2, 22, 24, 29, 65, 68, 89, 93, 106, 113–115, 120, 131, 132, 133, 134, 138 Identity as contingent, 21 crises, 30 as rational, 13 as relational, 22 technical, 66, 81 Impartiality, 31, 116, 120 Independence, 36, 79, 130, 134 Indicators Consumer Price Index, 70 Gross Domestic Product, 70 Indices, 54, 57 Actuarial Climate Risk Index, 102 Individualism, 13 Inequality, 76–80, 99, 107, 108, 112, 114, 117, 124, 139 as dangerous, 77 208 INDEX Inflation, 70, 71, 75, 116 ‘ecoflation’, 99 Information arbitrage, 46 industry-sponsored, 45 information arbitrators, 34 reflexivity, 45 Innovest, 52 Institute of Chartered Accountants in England and Wales, 60 Institute and Faculty of Actuaries, 101 Institute of Financial Consultants, 100 Institute for New Economic Thinking, 113 Insurance micro, 96 Sustainable, 96 Insurers, 6, 86, 95, 102 Integrated Reporting(IR), 49, 61 Integrity, 8, 28, 36, 54, 55, 57, 93, 96 legal, 96 Interests, conflicts of, 8, 31, 41, 42, 79, 94, 111, 116 Intergovernmental Panel on Climate Change, 78 International Accounting Standards Board, 61, 111 International Actuarial Association Environmental Research Group, 100 expert panel on Islamic Finance, 100 International Congress of Actuaries, 101 International Emissions Trading Association, 110 International Federation of Accountants, 36, 48, 60 International Financial Reporting Standards, 61 International Integrated Reporting Council, 49 International Labour Organisation, 96 International Monetary Fund, 9, 80, 118 International Relations, International Swaps and Derivatives Association International Takaful Awards, 52, 110 Interviews, 16, 96 Investors, 34–36, 39, 42, 44, 53, 54, 59, 84, 89, 123, 133, 137 International, 42, 54, 84 Ireland, 118 Islamic Finance Industry, 56, 122 platforms, 56 Islamic Finance News Awards, 52, 57, 98 Islamic Financial Services Board, 111 Islamic Interbank Benchmark Rate, 57 Islamic International Rating Agency, 52 Islamic law, see Shariah, scholar Islamic Sustainable Development Index, 57 J Janković, Vladimir, 10, 109, 110 Journalists, 68, 70, 72 JP Morgan Chase, 116 Justice, 8, 20, 58, 77, 88 Justification, 4, 7, 20, 55, 68, 133, 135 K Keynes, John Maynard, 45, 80, 114 Kinder, Lydenberg, Domini & Co., 52 Kipping, Matthias, 93 Knowledge, 7, 11, 23, 24, 38, 46, 51, 72, 75, 85, 86, 106, 112, 113, 114, 117, 120, 136 Knox-Hayes, Janelle, 97, 100 INDEX 209 KPMG, 62n5 Krugman, Paul, 5, 74, 76, 77, 78, 107, 110, 117, 124 Kyoto Protocol, 97 Long-term, 44, 59, 80, 95 Long Term Capital Management, 75 Lucas, Robert, 70, 72, 76, 81 L Lampedusa, Giuseppe Tomasi di, 115 Language, 66, 67, 81, 86, 87, 123, 124 actuarial, 86 Law common, 87 domestic, 87 and economics, 88 international, 88 Islamic, 18n5, 52, 63n14 Lawsuits, 40, 42, 87, 125 Lawsky, Benjamin, 103n5 Lawyers, 6, 84, 86–89, 91, 92, 93, 97 as translators, 88 Legalese, 87 Legal firms bulge-bracket, 6, 97 liabilities, 42, 53, 125 Legitimacy, 19, 20, 22–24, 29, 32n1, 39, 40, 112, 129 Legitimation communities, 103, 106, 112 legitimation strategy, 30 self-legitimation, 99–102 Lewis, Michael, 2, Liberal liberal financial order, 37 ‘neo-liberalism,’ 29 Liberalization, 68 Libor, manipulation, 116 Li, David, 6, 90 Linklaters, 100, 133 London, 1, 4, 16, 58, 59, 72, 97, 110, 116, 121, 126n3 London School of Economics, 72 M MacKenzie, Donald, 38, 39, 41, 49, 68, 97, 98, 110, 122–123 Madoff, Bernard, 94 Mammon, 2, 3, 4, 7, 11, 13, 14, 16, 28, 34, 38, 47, 55, 58, 62, 75, 85, 94, 100, 102, 103, 105, 125, 129–139 Mankiw, Gregory, 5, 76, 78, 108, 110, 113, 114 discussing philosophy, 76 Markets, equilibriums free markets, 30 inherently unstable, 114 as moral, 66 praise for, 67 Markit, 58, 59, 133 Mark-to-model, 41 Marx, Karl, 66, 69, 78, 109 Mathematics, meteorological, 96 Maurer, Bill, 8, 57, 63n14, 122 McBarnet, Doreen, 92, 96 McKinsey, 98 McWilliams, David, 67 MF Global, 116, 119 Minsky, Hyman, 114 Mirowski, Philip, 67, 72 Models, actuarial Dynamic Stochastic General Equilibrium, 70 economic, 79 Guassian copula, 90, 91 price models, 42 Monk, Ashby, 84, 89 Moody’s, 5, 34, 40, 52–55, 62n3, 123, 137 210 INDEX Moral, convictions philosophy, 67 universals, 67 Morality, implicit; in IR and GPE Morgan, Jamie, 87, 88 Mortgage-backed securities, 41 Mortgage markets, 70 Morton, Adam, 23 Mügge, Daniel, 28, 42, 68, 70 N Nationalisation, Natural Capital Coalition, 60 New Energy Finance, take over by Bloomberg, 97 New Public Management, 89 News, news cycle, 43–46, 52, 54, 55, 56, 57 New York, 4, 8, 15, 44, 46, 55, 59, 63n9, 77, 97, 98, 103n5, 116, 123 New York Times, 77, 116 NGOs, see Non-state actors Nietzsche, Friedrich, 12, 13 Nobel Memorial Prize, 5, 70, 73, 79, 114 Non-state actors, 3, 6–7, 9, 10, 14, 24–27, 36, 84, 133, 136 Norms, 21, 24, 25, 67, 92, 112 Numbers, as lingua franca of finance, 124 O Obama, Barack, 10, 58 Objectivity, see Impartiality Occupy Wall Street, 1, 40, 48 Oliver Wyman, emphasis on sustainability, 98, 99 Onuf, Nicholas, 29 Oracles, 89 P Park, Susan, 9, 111 Partnoy, Frank, 93, 134 Paterson, Mathew, 109 Payment Protection Insurance, 116, 120 Pension, funds, 86, 94 Perry, Frederick, 7, 122 Physics, 67 Piketty, Thomas, 77, 124 Point Carbon, 55, 110 Policy, change, formal policies, 24 Political scientists, 65 Politicians, 60, 65, 84, 120 Porter, Tony, 2, 24, 25, 26, 28, 86, 114 Portugal, 118 Positivism, 70 Post-structuralism, 11 Poverty, reduction initiative, 53, 123 Power, instrumental, 13 productive, 13 structural, 11 Practices, public, 24, 26, 27 business, 28 unethical, 93 Prediction, 69, 70 Prestige, occupational, 27 PricewaterhouseCoopers, 42 Private, sphere, 25, 26, 27, 136 Process tracing, 12 Professional associations, 36, 62, 133 service firms, Professionalism, 27–31, 33–38, 40, 42, 43, 46, 47, 58, 62, 65, 67, 68, 69, 73, 75, 76, 79, 80, 81, 85–88, 90, 95, 96, 100, 102, 103, 105, 106, 126, 136 Professionals, as ‘special differences between, 84 INDEX ethics, 36, 79 in Global Political Economy, 4, 83 as heterogeneous, 5, 67 in International Relations, as ‘knowledge actors’, as non-state actors, 3, 6, 7, 9, 10, 14, 24, 25, 26, 27, 36 overlaps amongst, 27 as profit-maximisers, traits thereof, 6, 27–31, 33, 34, 35, 36, 37, 38, 40, 42, 43, 46, 47, 58, 62, 65, 67, 68, 69, 73, 75, 76, 80, 81, 85–88, 90, 91, 95, 96, 100, 102, 105, 106, 126, 136 Profiles, 54, 121 Profiteering, see Greed Promontory Financial Group, 93 Public Company Accounting Oversight Board, 43, 62n4 Public, practices publicness, 24, 26 sphere, 24, 25, 26, 136 Q Quantification, 66, 124 R Rajan, Raghuram, 5, 70, 75, 77, 80, 107, 108, 114, 117 Rationality, 23 Reform, post-crisis, 2, 3, 14 Regulation, circumvention, 92 creative compliance with, 92 Regulators, 2, 7, 8, 9, 37, 51, 59, 68, 116, 120, 133 Rehman, Scheherazade, 7, 122 Reinhart, Carmen, 118 Remuneration, executive, 89 Resources, environmental, 99, 100 211 Reuters, see Thomson Reuters Ricardo, David, 66, 78 Risk, environmental assessment, 39, 99 management, 52, 96, 102, 108, 119 systemic, 54 Rogoff, Kenneth, 5, 77, 78, 107, 108, 110, 118 Roubini, Nouriel, 44 S Sachs, Jeffrey, Safety and Environmental Risk Management Rating Agency, 52 Saint-Martin, Dennis, 5, 88, 93 Sarbanes–Oxley Act, 62n4 Schmidt, Vivien, 30 Science, 67, 114 Seabrooke, Leonard, 4, 7, 17, 17n3, 29, 30, 31, 65, 133 Securitisation, 45, 121 Shariah, scholar, 51, 111 Shiller, Robert, 5, 36, 41, 70, 71, 75, 77, 78, 107, 108, 113, 124 Short-term, 8, 44, 70, 71, 91 Silver, Nick, 95, 119, 120 Smith, Adam, 66, 78 Social problems, 53, 125 Society of Actuaries, International Working Group on Actuarial Sciences and Sustainability, 102 Sociology, 11, 17, 19, 29, 31, 113 Software, 6, 51 Software and Information Industry Association, Solvency, 86, 114 Specialists, 23, 89 Speculation, 28, 110 Squire Patton Boggs, 100 Standard & Poor’s, Standard Chartered, 119 212 INDEX Standardisation, 37, 110 Staple Inn Actuarial Society, 101 Statistics, 124 Stewart, John, 45 Stiglitz, Joseph, 3, 5, 39, 69, 76, 77, 78, 80, 107, 110, 117, 124 Structure, 4, 11, 12, 22, 23, 30, 31, 36, 37, 54, 55, 61, 63n14, 98, 106, 112, 121, 122, 123 Sukuk, 52, 63n14, 121 Summers, Lawrence, leaked memo, 78 Sustainability, accounting data, 55 environmental, 54–60 internal programmes, 57 investing, 57 Key Performance Indicators, 60, 99 long-term focus, 56, 59 Practices, 53 socio-economic, 58 Sustainable Accounting Standards Board, 59 Switzerland, 94 Systemically important financial institutions, 113 T Tax, carbon, 110 wealth, 110 Technical knowledge, see Expert knowledge Technology, carbon to improve disparitites, 107, 108, 117 Innovation, 108, 125 Technology, information, news, corporations hedging, 107, 108 See also Derivatives Thomson Reuters, 5, 46, 55, 56, 57, 103n1, 108, 110, 122 Thought Leadership, 7, 99 Transparency, as dialogue, 29 as disclosure, 29 market, 28, 29 Trump, Donald, 119 Trust, 19, 35, 74, 86 Turner report, 90 U UBS, 94 United Kingdom, 2, 5, 6, 11, 14, 37, 38, 43, 47, 49–52, 55, 56, 59, 60, 62, 72, 84, 87, 88, 90, 93, 96, 98, 101, 112, 116, 118–125, 131–134, 137, 139 vote to leave European Union, 119 United Nations, 60, 124 United Nations Environmental Programme, 54 Utility, calculus, 89 V Values, liberal values, 13, 38, 65, 75, 112, 134 Valukas report, 42 Van Dijk, José, 22 Volatility, as anomaly, 75 W Water, 60, 97 Waxman, Henry, 94 Wealth common distribution, 76–79, 107 ignored, 76 as uneconomic, 76–78 Weather, extreme, 99 Weber, Max, 19, 21 INDEX Wigan, Duncan, 4, 29, 31 World Bank, 31, 78, 114 WorldCom, 39, 41, 43, 92 World Economic Forum, 57, 99 World Economics Association, 79 World Wildlife Federation, 60 Y Young, Kevin, 2, 3, 6, Z Zingales, Luis, 70, 74 213 ... Campbell and Stony Verduyn vii CONTENTS Professional Authority and Anglo- American Finance in Crisis Professional Authority in Anglo- American Finance The Professionals Examined The Explicit Ethical... providers in the aftermath of the global financial crisis has been overlooked The leading advisories examined in this book include PROFESSIONAL AUTHORITY AND ANGLO- AMERICAN FINANCE IN CRISIS UK-... Authority After the Global Financial Crisis Defending Mammon in Anglo- America Malcolm Campbell- Verduyn Balsillie School of International Affairs Waterloo, Ontario, Canada Building a Sustainable Political