Jack Brennan
"In Something for Nothing, Maureen O’Hara takes on the vitally important, and sometimes controversial, topic of ‘legal vs ethical’ for financial professionals and firms in a practical, balanced, educational, and most enjoyable way. This book should be mandatory reading for people entering our business and for anyone interested in how to restore—and retain—trust in the financial services industry and its people."
Robert J. Shiller
"Something for Nothing teaches finance from a moral perspective, integrating morals into the theory. This should be essential reading for people seeking an introduction to finance, who feel they can’t really understand it properly if they can’t square it with their deep values."
Thomas J. Sargent
"Something for Nothing joins and extends a worthy tradition dating back at least to Adam Smith—who was both an eminent philosopher and an eminent economist—in wrestling with how markets do or don’t succeed in channeling some of our baser traits, greed and deception, in socially useful directions. Events surrounding the financial crisis and the ongoing project or crisis to construct a stable Euro zone have brought these always-present issues to the fore. Maureen O’Hara’s distinction as an economist who knows what makes sophisticated ‘high frequency’ markets work lends especial credibility to her analysis. Getting these things right is important if the general public is to support wise regulation of these markets."
Library Journal
08/01/2016
In approaching the issue of ethics and finance, O'Hara (Robert W. Purcell Professor of Finance, Johnson Graduate Sch. of Management, Cornell Univ.) first describes the evolution and nature of modern finance, including its creation of more complex securities than the traditional ones of stocks and bonds, in order to eliminate market inefficiencies and increase investment opportunities and capital availability. The author says that these securities are thought of as morally neutral tools and that ethical considerations of their use are not often discussed by finance professionals. O'Hara then considers various theoretical approaches to ethics and describes real-life financial deals and analyzes them ethically. She argues that trying to deal with unethical practices through rules prohibiting specific actions is largely counterproductive, and that a more effective approach would be a "standard that trading behavior must be consistent with promoting orderly and effective markets." Even more essential, in her view, is the market's cultural acceptance or nonacceptance of deal-making and trading behaviors. VERDICT This sophisticated, fairly clear exploration of ethical issues regarding modern financial securities trading will appeal mainly to finance practitioners and academics.—Shmuel Ben-Gad, Gelman Lib., George Washington Univ., Washington, DC
Kirkus Reviews
2016-08-10
A leading financial economist attempts to counterbalance “the impression that modern finance is at best ‘ethically challenged’ or at worst fatally flawed,” a perception bolstered by the “constant barrage of financial scandals.”This is no apologia for the current state of market finance. O’Hara (Finance/Johnson Graduate School of Management/Cornell Univ.; Market Microstructure Theory, 1995, etc.), whose qualifications and contributions are recognized in the world of finance as well as academia, is concerned with exploring the gray areas between an ethical approach to financial transactions and behavior sanctioned by law. Identifying where such lines are drawn opens the door to a provocative and stimulating discussion of the kinds of ambiguous situations that arise almost daily in the financial sector, as well as the economy at large. Are there different kinds of harm caused, she asks pointedly, by acting on something or not acting on it? Among the author’s illustrative examples are Goldman Sachs’ conduct in a series of transactions in the early 2000s that helped Greece qualify for entry in the European Union by making it appear as if its government did not carry so much debt, as well as the company’s notorious bets against real estate finance. O’Hara investigates a host of complications that can surface in transactions, including one party’s obligations to inform another and the counter-party’s duty to exert due diligence on its own behalf. This fine-grained attention to detail requires a familiarity with both recent developments in the financial world and an acquaintance with major schools of ethics. Regarding the former, the author provides an overview of how synthetic products are created and proliferate; regarding the latter, a discussion of different approaches helps support her discussion. She also looks at controversial developments in new algorithmic technology. A clearly presented book that effectively “reduce[s] the confusion surrounding financial activities.
