The Cost of Financial Crisis: How Absent Management in Banking Became Costly

Christian Dinesen ()
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Christian Dinesen: Dinesen Associates Ltd.

Chapter Chapter 12 in Absent Management in Banking, 2020, pp 227-243 from Springer

Abstract: Abstract When unmanaged banks cause a financial crisis the costs become truly astonishing. The 2008 financial crisis resulted in the Great Recession. The cost of rescuing banks resulted in reduced economic growth and increased government debt in the United States, and across the European Union, which also saw increased unemployment, reduced government spending and decade-long austerity in the United Kingdom. Additional possible effects were greater inequality, shorter life expectancy, reduced standing of the West and rise of populism. Immense stress was felt by millions because bankers did not manage. The cost of absent management can be so great it must be worthwhile to ensure that banks are always managed.

Keywords: Cost; Great Recession; Economic growth; Government borrowing; Stress (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-35824-2_12

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DOI: 10.1007/978-3-030-35824-2_12

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