Structural change in high finance
July 7, 2012 7:47 AM Subscribe
What can be done to prevent another financial meltdown? While some cry for armed revolution, others are whispering for incremental changes that could have a substantial impact on how high finance works – or doesn't.
John Coates, a former Wall Street derivatives trader
and now a neuroscientist
at the University of Cambridge, has done novel research on how testosterone
skews the thinking – and thus the behavior – of traders, inspiring them to take on more risk
than benefits society. His research is now available in a book
Would programs that encourage more women to enter – and/or climb the ranks of – trading groups make finance more responsible?
(If this strikes you as biological determinism, there are other lines of inquiry that may be headed in the same direction: how managers exploit subordinates
in ways that shape overall behavior and could be modified via both incentives and regulation; how cheating happens
and the best ways to prevent it.)
posted by noway (45 comments total)
17 users marked this as a favorite