Historical Foundations of Financial Institutions and Markets provides a historical and institutional perspective on the development of financial markets and financial institutions internationally and in Denmark. The historical focus enables students to critically understand and discuss the development and dynamics of the financial industry, including individual financial firms in their historical context. The course also considers how perceptions of the past constrain strategies and decisions in the present, and how such decisions have contributed to financial instability. The course is partly lecture and discussion and partly case-based. In addition, students are required to take part in group presentations.

"Historical foundations of financial institutions and markets" is part of the minor "Financial Decision-Making in a Social Context". Priority is given to students who register for the full minor. In the case of vacant spots students can register for one or more of the individual courses.

Course literature (preliminary only, changes may still be made)

Films:

Barbarians at the Gates

The Flaw

Literature:

Abelson, Max, Jason Kelly, and David Carey, ”Renegades of Junk. The Rise and Fall of the Drexel Empire”, Bloomberg, April 2015. https:/​/​www.bloomberg.com/​graphics/​2015-drexel-burnham-oral-history/​

Beckert, Jens, "How Do Fields Change? The Interrelations of Institutions, Networks, and Cognition in the Dynamics of Markets", Organization Studies, 2010, vol. 31, no. 5, pp. 605-27

Cassis, Youssef, “Banking and finance in Europe since 1945”, In Hesse, Jan et al, Perspectives on European Economic and Social History, Baden-Baden, Nomos Verlagsgesellschaft, 2014, pp. 47-72

Cheffins, Brian R., Corporate Governance since the Managerial Capitalism Era, Business History Review, vol. 89, no. 4, 2015, pp. 714-744

Davis, Gerald F., “The New Financial Capitalism” in Davis, Gerald F., Managed by the Markets. How Finance Reshaped America, Oxford University Press, 2009, pp. 1-27

Eichengreen, Barry, “Economic History and Economic Policy”, Journal of Economic History, 2012, vol. 72, no. 2, pp. 289-307

Eichengreen, Barry & Peter Temin, “The Gold Standard and the Great Depression” Contemporary European History, vol.  9, No. 2 (2000), pp. 183-207

Feldman, Gerald D, (1994), “Jakob Goldschmidt, the History of the Banking Crisis of 1931, and the Problem of Freedom of Manoeuvre in the Weiman Economy”, in Christoph Buchheim, Michael Hutter & Harold James (eds), Zerissene Zwischenkriegszeit. Wirtschaftshistorische Beiträge. Knut Borchardt zum 65. Geburtstag, Baden-Baden: Nomos Verlagsgesellschaft, pp. 307-27.

Fichtner, Ullrich, Hauke Goos & Martin Hesse, “The Deutsche Bank Downfall. How a Pillar of German Banking Lost Its Way”, Spiegel Online, October 28, 2016, http:/​/​www.spiegel.de/​international/​business/​the-story-of-the-self-destruction-of-deutsche-bank-a-1118157.html

Grossman, Richard S., “Regulation” in Richard Grossman, Unsettled Account. The Evolution of Banking in the Industrialized World Since 1800, Princeton University Press 2010, pp. 128-168

Hamilton, Stewart & Alicia Micklethwait, Chapter 3: “Enron. Paper Profits, Cash Losses”, in Greed and Corporate Failure. The Lessons From Recent Disasters, Palgrave MacMillan: New York 2006, pp. 33-58

Hansen, Per H., "The Danish Savings Banks Association and the Deregulation of the Savings Banks, 1965-1975", in Kuijlaars, A-M., K. Prudon and J. Visser (eds.), Business and Society. Entrepreneurs, Politics and Networks in a Historical Perspective, Rotterdam 2000, pp. 219-36.

Hansen, Per H., “Organizational Culture and Organizational Change: A Narrative analysis of the Transformation of Savings Banks in Denmark, 1965-1990”, Enterprise & Society, Vol. 8, no. 4, 2007, pp. 920-53

Hansen, Per H., “Making Sense of Financial Crisis and Scandal. A Danish Bank Failure in the Era of Finance Capitalism.” Enterprise & Society, 2012, vol 13, no. 4, 672-706

Hansen, Per H., "From finance capitalism to financialization: A Cultural and narrative perspective on 150 years of financial history", Enterprise & Society, 2014, vol. 15, no. 4, pp. 605-42

Huertas, Thomas F. & Silverman, Joan L. (1986), “Charles E. Mitchel: Scapegoat of the Crash”, Business History Review, Vol. 60, No. 1, pp. 81-103.

Jenkins, Patrick & Laura Noonan, ”How Deutsche Bank’s high-stakes gamble went wrong”, Financial Times, November 9, 2017, https:/​/​www.ft.com/​content/​60fa7da6-c414-11e7-a1d2-6786f39ef675

Kobrak, Christopher & Michael Troege, ”From Basel to Bailouts: forty years of international attempts to bolster bank safety”, Financial History Review, vol. 22, no. 2, 2015, pp. 133-156

Mitchell J. Larson , Gerhard Schnyder , Gerarda Westerhuis & John Wilson, “Strategic responses to global challenges: The case of European banking, 1973–2000” Business History, vol 53, no. 1, 2011, pp. 40-62

Moss, David, Cole Bolton & Andrew Novo, Danatbank, HBS Case, 2010

Moss, David, Cole Bolton & Eugene Kintgen, The Pecora Hearings, HBS Case, 2010

Moss, David, ”The Deutsche Bank”, in Thomas McCraw, Creating Modern Capitalism. How Entrepreneurs, Companies, and Countries Triumphed in Three Industrial Revolutions, Harvard University Press, 1997, pp. 229-63

Nicholas, Tom & Matthew G. Preble, Michael Milken: The Junk Bond King, HBS Case, 2016

North, Douglas C., “Institutions and the Performance of Economies Over Time” in Claude Menard & Mary M. Shirley, Handbook of New Institutional Economics, Dordrecht, 2005, pp. 21-30.

Pak, Susie, ”The House of Morgan: Private Family Bank in Transition”, in K. Schönhärl (ed.), Decision Taking, Confidence and Risk Management in Banks from Early Modernity to the 20th Century, Routledge 2017, pp. 15-55

Shiller, Robert, ”Narrative Economics”, American Economic Review, 2017, vol. 107, no. 4, 967-1004

Smith, George D. & Richard Sylla, "Capital Markets," in Encyclopedia of the 20th

Century (Scribners, 1996), pp.  1209-1241