Mindfully Resisting the Bandwagon – IT Implementation and Its Consequences in the Financial Crisis

  • Although the ”financial meltdown” between 2007 and 2009 can be substantially attributed to herding behaviour in the subprime market for credit default swaps, a “mindless” IT implementation of participating financial services providers played a major role in the facilitation of the underlying bandwagon. The problem was a discrepancy between two core complementary capabilities: (1.) the (economic-rationalistic) ability to execute financial transactions (to comply with the herd) in milliseconds and (2.) the required contextualized mindfulness capabilities to comprehend the implications of the transactions being executed and the associated IT innovation decisions that enabled these transactions.

Export metadata

Additional Services

Share in Twitter Search Google Scholar
Author:Roman Beck, Wolfgang KönigGND, Immanuel Pahlke, Martin Wolf
Parent Title (German):SAFE policy letter series ; 10
Series (Serial Number):SAFE policy letter (10)
Place of publication:Frankfurt am Main
Document Type:Working Paper
Date of Publication (online):2013/05/14
Date of first Publication:2013/05/14
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2013/09/04
Tag:IT innovations; financial services
Page Number:8
First Page:1
Last Page:7
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht