IDEAS home Printed from https://ideas.repec.org/a/taf/ijecbs/v19y2012i2p233-253.html
   My bibliography  Save this article

“Strategic Failure” in the Financial Sector: A Policy View

Author

Listed:
  • J.Robert Branston
  • Philip R. Tomlinson
  • James R. Wilson

Abstract

Analysis of the recent financial crisis has tended to focus upon “market” and corresponding “regulatory” failures. While this provides important insights, it may neglect deeper issues at the root of recent problems. In this paper, we take a broader perspective, drawing upon the stategic choice approach to the theory of the firm (Cowling and Sugden, 1998, 1999). We present a governance-based analysis which emphasises the process of engaging interested “publics” in corporate decision-making processes. We illustrate our arguments with respect to three UK cases -- Northern Rock, Bradford and Bingley, and HBOS banks -- which each required major interventions by the UK Government and whose recent history reveals significant changes in ownership, governance and corporate strategy. We argue that the current period of reform for these former building societies represents an ideal opportunity to address serious concerns over governance within the financial sector, and we propose a revised mutual solution as one appropriate way forward.

Suggested Citation

  • J.Robert Branston & Philip R. Tomlinson & James R. Wilson, 2012. "“Strategic Failure” in the Financial Sector: A Policy View," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 233-253, July.
  • Handle: RePEc:taf:ijecbs:v:19:y:2012:i:2:p:233-253
    DOI: 10.1080/13571516.2012.684927
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13571516.2012.684927
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Silvia Sacchetti & Roger Sugden, 2009. "Creativity in Economic Development: Space in an Inferno," Chapters,in: Knowledge in the Development of Economies, chapter 9 Edward Elgar Publishing.
    2. Raghuram G. Rajan, 2010. "Fault Lines: How Hidden Fractures Still Threaten the World Economy," Economics Books, Princeton University Press, edition 1, number 9111.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:19:y:2012:i:2:p:233-253. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CIJB20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.