Lying, cheating bankers


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Lying, cheating bankers are not born; they’re created.

That’s the conclusion of the new study by Alain CohnErnst Fehr, and Michel André Maréchal, “Business culture and dishonesty in the banking industry,” published in Science.

In other words, all of the various dishonest behaviors of bankers in recent years—from manipulating the foreign exchange market, LIBOR, and the gold market to mis-selling interest-rate swaps, mortgage backed securities, and credit-default swaps—for which some bankers have been fined but none of them jailed, can be attributed to the fact that “being a banker” made people more likely to cheat.

Their study is based on the idea that individuals have multiple social identities.

Which identity and associated norms are behaviourally relevant depends on the relative weight an individual attributes to an identity. In a given situation, behaviour is shifted towards those norms that are associated with the more salient identity. Thus, if the banking…

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