Resumen de Overcoming Recklessness in Finance and the Urgent Need for Strengthening Ethics

Mikel Larreina Díaz

• Lack of ethics had a significant role in the financial crisis of 2007-08 that triggered the Great Recession. Politicians, social and religious leaders have described finance as a soulless sector, particularly prone to corruption and fraud. Bankers themselves have asked for limits and have recognised that a cultural change is needed. The abandonment of a macho culture of greed and recklessness is not easy and takes time. Unfortunately, a delay in the reshaping of the financial system is a luxury that mankind shouldn’t have. Finance plays a critical role of in the allocation of resources across our society. Thus, mankind will only succeed in the challenges that we face (like limiting global warming) if the financial services industry can be trusted as an efficient and ethical auxiliary service to the real economy. Luckily, four main disruptions are emerging in Finance. They may provide the adequate scenario for a deep transformation of the financial system along ethical and responsible lines.