Techno-Organizational Diversity, Network Topologies and the Manageability of Banks

Uncertainty: the Curate's egg in financial economics

“…He shows that ‘risk management’ neglects the manageability of banks, and their ‘risk‐proof’ goal includes the impossible fantasy that disruptions and collapses never happen. Their models are about risk perceptions of ‘accounting objects’, studied via quantitative variables (Kyrtsis : 189, 193).…”

“…Bank management's aim to transform ‘risk objects into objects of certainty’ became ‘treacherous’ after the 1990s re‐engineering of banks, which directed all functions to ‘marketing‐ and sales‐dependence’ (Kyrtsis : 192–6). Amidst the ‘techno‐organizational fog’, executives have no idea what to look for.…”

“…He says it is less ‘information overload’ but a lack of any orientation except from auditing. This lack, the rise of proprietary trading (a ‘sure thing’ against clients) and leveraging, led (fatally) to downgrading of back office contracting, clearing, settlement and custody services (Kyrtsis : 218).…”

“…Had they hidden the information? Kyrtsis says instead, this phase of neo‐liberalism intensified the crisis because ‘financial bubbles combined with organisational bubbles’ (Kyrtsis : 219–20). The corrosion of the skills and crafts of banking and of hoping for the borrowers' success were evident well before 2007.…”