Part V Legal and Conduct Risk in Interconnected Financial Markets, 17 Legal and Conduct Risk in a Globalizing Financial Market
Roger Mccormick, Chris Stears
Roger McCormick, Chris Stears
- Credit risk
This chapter discusses legal and conduct risk associated with the globalized financial market. It argues that the involvement of banks in both globalization and the financial crisis has increased the risk of banks being a target for criticism for the social ills and misfortunes associated with either of these phenomena. Such criticism often leads to lawsuits, political action, or adverse regulatory measures; and sometimes a combination of these things. The remainder of the chapter covers the globalization debate and context; how legal risk is affected by, and has sources in, current and enduring political and social objectives; the media’s influence on to the culture of fear and ‘zero risk tolerance’; the limits of global law; reactions to globalization; and the need for legal certainty.