Handbook of Advances in Trust Research
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Handbook of Advances in Trust Research

Edited by Reinhard Bachmann and Akbar Zaheer

The Handbook of Advances in Trust Research presents new and important developments in trust research. The contributors are all prominent and highly respected experts in the field. Firstly, they provide a contemporary overview of the most crucial issues in current trust research including contracts, innovation and negotiation, trust and control. Thereafter, themes which have gained prominence since the original Handbook are considered, such as trust and the financial crisis, public trust in business, and trust and HRM. The book also explores recent theoretical advances and points the way for future research on trust.
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Chapter 8: Trust and the global financial crisis

Nicole Gillespie and Robert Hurley


Trust is central to exchange and growth. Nowhere is this more apparent than in the financial arena. Indeed, the term ‘credit’ is derived from the Latin word credere, meaning ‘to believe or trust’ (Oxford Dictionary, 2003). In the latter part of 2008 into 2009, with the collapse of Bear Sterns and Lehman Brothers, trust was eroded and financial institutions stopped lending to one another. The subsequent lack of credit caused a broader economic slowdown and the lack of trust spread from Wall Street to Main Street and across the globe. The result was a rise in unemployment in many countries and, according to the International Monetary Fund, the destruction of $4.1 trillion worth of wealth on a global scale. The Global Financial Crisis (GFC) presents a unique setting to examine trust, trust violation and trust repair from a multi-level perspective that crosses the individual (for example, investors, retirees, employees), organizational(for example, Lehman Brothers, Citibank, Goldman Sachs), industry (for example, finance and insurance) and societal (for example, global economy and governments) levels.

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