What is the matter with finance? A historical analysis of the change in US banking practices since 1970
(2017) EKHK18 20171Department of Economic History
- Abstract
- This paper follows changes in US banking practices since financial growth de-coupled from the real economy in 1970s, a phenomenon referred to as financialisation in post-Keynesian and Marxian literature. It is argued that financialisation is a consequence of decades of financial deregulation and neoliberal policies, that has given rise to shareholder value-oriented management structures and complex financial instruments, that makes possible and legitimises banking practices that are harmful to the economy. It is concluded that banking has become more about collecting fees and moving risk than about financing productive investments, and the subprime credit crisis is used as an example of how banks targeted the working poor with predatory... (More)
- This paper follows changes in US banking practices since financial growth de-coupled from the real economy in 1970s, a phenomenon referred to as financialisation in post-Keynesian and Marxian literature. It is argued that financialisation is a consequence of decades of financial deregulation and neoliberal policies, that has given rise to shareholder value-oriented management structures and complex financial instruments, that makes possible and legitimises banking practices that are harmful to the economy. It is concluded that banking has become more about collecting fees and moving risk than about financing productive investments, and the subprime credit crisis is used as an example of how banks targeted the working poor with predatory measures in order to extract wage surplus from the industrial circulation into the financial circulation, it is furthermore concluded that such behaviour is pro-cyclical. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8917161
- author
- Arnoldsson, Jens LU
- supervisor
-
- Erik Green LU
- organization
- course
- EKHK18 20171
- year
- 2017
- type
- M2 - Bachelor Degree
- subject
- keywords
- financialisation, predatory banking, subprime credit crisis, financial instability, shareholder value, USA
- language
- English
- id
- 8917161
- date added to LUP
- 2017-06-21 08:45:24
- date last changed
- 2017-06-21 08:45:24
@misc{8917161, abstract = {{This paper follows changes in US banking practices since financial growth de-coupled from the real economy in 1970s, a phenomenon referred to as financialisation in post-Keynesian and Marxian literature. It is argued that financialisation is a consequence of decades of financial deregulation and neoliberal policies, that has given rise to shareholder value-oriented management structures and complex financial instruments, that makes possible and legitimises banking practices that are harmful to the economy. It is concluded that banking has become more about collecting fees and moving risk than about financing productive investments, and the subprime credit crisis is used as an example of how banks targeted the working poor with predatory measures in order to extract wage surplus from the industrial circulation into the financial circulation, it is furthermore concluded that such behaviour is pro-cyclical.}}, author = {{Arnoldsson, Jens}}, language = {{eng}}, note = {{Student Paper}}, title = {{What is the matter with finance? A historical analysis of the change in US banking practices since 1970}}, year = {{2017}}, }