FT.com / Comment & analysis / Comment - Ethical finance standards must be restored - 0 views
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it should be apparent to all of us that sometimes senior executives, including the chairman, do not fully understand the businesses in which the company is involved. The financial instruments now causing such turmoil were not properly priced for their inherent risk and managers were unaware of the integral problems with these instruments. Much of this was made possible by the advanced technology used to devise and distribute these instruments.
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Arabica Robusta on 10 May 08A good example of "strategic naivete". Financiers pretend they did not know that their structures of speculative greed would cause so much ruin. "Plausible deniability"
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Arabica - You wonder about intentions ... I am not sure that in looking at economies we need to think about intentions -- it is like looking at texts without thinking about authorial intentions. Outcomes, incentives, structural cause etc. all make sense without thinking about intentions. So does re-regulation.
