Abstract

Financial companies worldwide are blamed for having precipitated the gravest global economic meltdown since the Great Depression of the 1930s. While the aftershocks of the last turmoil are still palpable and some observers prophesy that another sharp econ omic downturn might be in the offing … global policymakers, analysts, researchers and the public at large ruminate how to redress the balance of powers to ensure socially sustainable financial and macroeconomic growth. This paper reviews the expansion of worldwide financial industries relative to real economies (financialisationŽ), exemplifies its social ramifications and indentifies the root causes of socially disruptive innovation undertaken in financial institutions. Finally, the paper highlights th e prerequisites of social equilibria in financial organisations, of which most are endogenous in nature.