Clare Hall Colloquium

 19.45 Tuesday 4 November

 Meeting Room, Clare Hall, Herschel Road



Ethics and the global financial crisis

Why incompetence is worse than greed

 

Boudewijn de Bruin

Professor of Financial Ethics

University of Groningen

  To the extent that the global financial crisis is a moral crisis, most 
commentators have focused on banker bonuses, cultures of greed, shameless 
self-enrichment, and other forms of egoism.

 But while unrestricted egoism is certainly a vice, I argue that the more 
serious moral defects in finance lie somewhere else. They have to do not so 
much with the motivation of bankers and other finance professionals, but rather 
with their competence, that is, with the way they gain and process information, 
make predictions, assess business risks, scrutinise clients, and so on.

 Using insights from a recent strand in philosophy called ‘virtue 
epistemology’, I consider in this talk such things as the ethics of sub-prime 
mortgages, credit rating agencies and banks, as well as the way in which 
‘epistemic virtues’ assisted in the uncovering of the Madoff scam.
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