Foundations of Islamic Finance series
Edited by Mervyn K. Lewis, Mohamed Ariff and Shamsher Mohamad
Chapter 12: Financial market operations in the United States: ethical issues and lessons for Islamic banking
Whenever there is a financial crisis that leads to major economic downturn, a number of questions arise in the minds of investors and the general public. Was it the result of excessive speculation by some financial institutions? Or was it due to domestic and/or global economic factors that could not have been avoided by financial market operators? Or was it the consequence of slack or ineffective regulations of the markets by the governmental authorities? Or was it caused by deliberate floundering of laws regarding market operations? Or was the crisis due to unethical and unscrupulous conduct of financial market operatives? One common factor that can be found in the financial market collapses since the Great Depression of the 1920s is the preponderance of unethical (but not necessarily illegal) conduct on the part of financial market operatives, especially banking institutions. This chapter examines this aspect of the US financial markets.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.