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Causes of the global financial crisis: Learning from the competing insights

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Abstract

Sub-prime mortgages in the United States appear to have triggered the current global financial crisis. The crisis appears to be the combined result of adverse macro-economic conditions, bad corporate governance and loose regulatory oversight. Consequently, current views of the crisis differ primarily on the emphasis they attach to each of these perspectives, and tend to include other insights as contributing causes. This article, however, supports the view that flawed governance practices in both the public and private sector are largely responsible for the financial catastrophe. It also argues that the current tendency to blame it on the United States is overplayed and that bad governance practices are a global phenomenon. The article relies on secondary data analysis and observations of relevant banking practices to support this contention.

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Yeoh, P. Causes of the global financial crisis: Learning from the competing insights. Int J Discl Gov 7, 42–69 (2010). https://doi.org/10.1057/jdg.2009.18

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