Rogue trading has been a persistent feature of international financial markets over the past thirty years, but there is remarkably little historical treatment of this phenomenon. To begin to fill this gap, evidence from company and official archives is used to expose th... View more
4 Donald C. Langevoort, “Monitoring: The Behavioural Economics of Corporate Compliance with Law,” Columbia Business Law Review 2002, no. 1 (2002): 71-118.
5 John Coates, The Hour between Dog and Wolf: Risk-Taking, Gut Feelings, and the Biology of Boom and Bust (New York, 2012); Joe Herbert, Testosterone: Sex, Power, and the Will to Win (Oxford, 2015).
6 Philip Clarke, Sunday Times, 8 Sept. 1974. Susan Strange noted the high appetite for risk in financial markets in the 1970s, Casino Capitalism (London, 1986).
7 Nicholas Barberis and Richard Thaler, “A Survey of Behavioral Finance,” in Handbook of the Economics of Finance, ed. George M. Constantinides, M. Harris, and René Stulz (Amsterdam, 2003), 1052-121; Helga Drummond and Julia Hodgson, Escalation in Decision-Making: Behavioural Economics in Business (Farnham, U.K., 2011).
8 Forrest Capie, The Bank of England: 1950s to 1979 (Cambridge, U.K., 2010). There are two early histories of Lloyds Bank: R. S. Sayers, Lloyds Bank in the History of English Banking (Oxford, 1957); and J. R. Winton, Lloyds Bank, 1918-1969 (Oxford, 1982).
9 William M. Clarke, “Lloyds Bank Europe: A Report,” Oct. 1969, HO/Ch/Fau/20, Lloyds Banking Group Archives, London (hereafter LGA).
14 Gary Burn, The Re-emergence of Global Finance (London, 2006).
15 Robert Gras (manager of foreign exchange at LBI), testimony, 18 Sept. 1974, London, HO/Gr/Off/2, LGA.
16 Sir Reginald Verdon-Smith (chairman of LBI) to all heads of divisions and departments in London, overseas chief managers, branch managers, and representatives, 19 Sept. 1974, F/1/ SS/Pre/2, LGA.