Join our community of smart investors

The cost of the Barclays' scandal

This temptation should be resisted. The scandal could have long-term costs vastly in excess of one or two basis points on interest rates.

The issue here is one of trust. Trust is central to most economic transactions. We trust that Amazon and Ocado will deliver the goods we ordered; we trust that shops will sell us products of acceptable quality or replace them; we trust that our employers will pay us at the end of the month; and so on. As Deirdre McCloskey wrote in The Bourgeois Virtues, "business normally depends on a state of trust not on explicit contracts".

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in