Insider lending: banks, personal connections, and economic development in industrial New England

The term insider lending conveys an aura of abuse and corruption, of unethical, if not illegal, behaviour. In early nineteenth-century New England, however, insider lending was an integral aspect of the banking system. Not only was the practice an accepted fact of economic life, but, as Naomi R. Lam...

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Bibliographic Details
Main Author: Lamoreaux, Naomi R. 1950- (Author)
Format: Electronic Conference Proceedings eBook
Language:English
Published: Cambridge Cambridge University Press 1994
Subjects:
Links:https://doi.org/10.1017/CBO9780511582523
https://doi.org/10.1017/CBO9780511582523
https://doi.org/10.1017/CBO9780511582523
Summary:The term insider lending conveys an aura of abuse and corruption, of unethical, if not illegal, behaviour. In early nineteenth-century New England, however, insider lending was an integral aspect of the banking system. Not only was the practice an accepted fact of economic life, but, as Naomi R. Lamoreaux argues, it enabled banks (at least in this particular historical context) to play an important role in financing economic development. As the banking system evolved over the course of the century, however, lending practices became more impersonal and professional. Ironically, the information problems banks faced when they began to conduct more and more of their business at arm's length forced them to concentrate on providing short-term loans to commercial borrowers and to give up financing economic development. This book was first published in 1994
Item Description:Title from publisher's bibliographic system (viewed on 05 Oct 2015)
Physical Description:1 online resource (xiii, 170 pages)
ISBN:9780511582523
DOI:10.1017/CBO9780511582523

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