Internationalism, Institutions and Individuals: Systemic Changes
for a Systemic Ethical Crisi

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It was 2006, when the world still celebrated the heady days of ever-rising property values, ever-rising equity values, and ever-rising bonuses for the investment bankers, hedge fund managers and private equity captains who made the good times happen. The head of McKinsey’s Corporate Performance Center in New York was in the Wharton School giving a presentation on ‘The Tao of Finance’. There was a reverent hush as the students eagerly took notes on valuing companies. No one would have imagined then that the good times would roll to an end just one year later.

What is the way of finance?

I found it interesting that he chose the Chinese word ‘Tao’. In modern Chinese, the character translates as ‘way’ or ‘path’. Perhaps the current financial crisis could have been averted if the hordes of business school students eager to find their place on Wall Street had had a different conception of ‘The Tao of Finance’: The fundamentals of finance should be founded on ethics, and not just on Corporate Valuation 101.

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