Wall Street Capitalism and the World of Professional Managers

A systemic failure of epic proportions in organisations and institutions that are the foundations of market capitalism is unfolding. This essay takes a broad overview of the nature of the improprieties that led to the collapse of corporate governance systems in some of the largest US corporations. The behaviour of professional managers who run these corporations as well as the supporting self-governing institutions and corporate boards is then discussed in the context of the capital market-driven governance systems within which they operate. The essay concludes by raising a few issues of regulatory accountability that the recent happenings have thrown up.