All bark and no bite: the political economy of bank fines in Anglo-America

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All bark and no bite : the political economy of bank fines in Anglo-America. / Macartney, Huw; Calcagno, Paola .

In: Review of International Political Economy, Vol. 26, No. 4, 27.06.2019, p. 630-665.

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@article{8b296cc73d9e4ae792fdc894b18a2a30,
title = "All bark and no bite: the political economy of bank fines in Anglo-America",
abstract = "Since the global financial crisis, the Anglo-American banking sector has been hit by revelation after revelation of mis-selling, fraud, and collusion. In response, state managers in the US and the UK have leveled over £326bn in financial penalties. Authorities claimed that fines were aimed at de-incentivizing misconduct. Drawing on a critical political economy account however, this paper argues that the penalties had a rather different objective: they were part of a populist strategy by state managers, deflecting criticism away from the financialization of Anglo-America. First we show the questionable economic impact of the fines on the banks, before exploring the terms of the penalties themselves. Second, we show how state managers used the fines to respond to a legitimacy crisis, whilst the financialization of Anglo-America since the global financial crisis has only worsened. The article expands on existing explanations in the legal studies literature, and is one of the first political economy accounts of bank fines since the GFC.",
keywords = "banking regulation, financialization, Anglo-America, financial markets, banking, financial",
author = "Huw Macartney and Paola Calcagno",
year = "2019",
month = jun,
day = "27",
doi = "10.1080/09692290.2019.1607770",
language = "English",
volume = "26",
pages = "630--665",
journal = "Review of International Political Economy",
issn = "0969-2290",
publisher = "Taylor & Francis",
number = "4",

}

RIS

TY - JOUR

T1 - All bark and no bite

T2 - the political economy of bank fines in Anglo-America

AU - Macartney, Huw

AU - Calcagno, Paola

PY - 2019/6/27

Y1 - 2019/6/27

N2 - Since the global financial crisis, the Anglo-American banking sector has been hit by revelation after revelation of mis-selling, fraud, and collusion. In response, state managers in the US and the UK have leveled over £326bn in financial penalties. Authorities claimed that fines were aimed at de-incentivizing misconduct. Drawing on a critical political economy account however, this paper argues that the penalties had a rather different objective: they were part of a populist strategy by state managers, deflecting criticism away from the financialization of Anglo-America. First we show the questionable economic impact of the fines on the banks, before exploring the terms of the penalties themselves. Second, we show how state managers used the fines to respond to a legitimacy crisis, whilst the financialization of Anglo-America since the global financial crisis has only worsened. The article expands on existing explanations in the legal studies literature, and is one of the first political economy accounts of bank fines since the GFC.

AB - Since the global financial crisis, the Anglo-American banking sector has been hit by revelation after revelation of mis-selling, fraud, and collusion. In response, state managers in the US and the UK have leveled over £326bn in financial penalties. Authorities claimed that fines were aimed at de-incentivizing misconduct. Drawing on a critical political economy account however, this paper argues that the penalties had a rather different objective: they were part of a populist strategy by state managers, deflecting criticism away from the financialization of Anglo-America. First we show the questionable economic impact of the fines on the banks, before exploring the terms of the penalties themselves. Second, we show how state managers used the fines to respond to a legitimacy crisis, whilst the financialization of Anglo-America since the global financial crisis has only worsened. The article expands on existing explanations in the legal studies literature, and is one of the first political economy accounts of bank fines since the GFC.

KW - banking regulation

KW - financialization

KW - Anglo-America

KW - financial markets

KW - banking

KW - financial

UR - http://www.scopus.com/inward/record.url?scp=85068422668&partnerID=8YFLogxK

U2 - 10.1080/09692290.2019.1607770

DO - 10.1080/09692290.2019.1607770

M3 - Article

VL - 26

SP - 630

EP - 665

JO - Review of International Political Economy

JF - Review of International Political Economy

SN - 0969-2290

IS - 4

ER -