BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Talks.cam//talks.cam.ac.uk//
X-WR-CALNAME:Talks.cam
BEGIN:VEVENT
SUMMARY:The Paradox of Success: Building Societies and their risk-taking b
 ehaviour in England\, c. 1880-1939 - Mr Luke Samy\, Winton Institute\, Oxf
 ord
DTSTART:20110124T170000Z
DTEND:20110124T190000Z
UID:TALK28662@talks.cam.ac.uk
CONTACT:D'Maris Coffman
DESCRIPTION:Some scholars have posited that mutual banks have fewer incent
 ives to engage in excessive risk-taking than joint-stock banks because of 
 the unique structure of property rights in the former. This paper uses the
 ir theory as a framework to explain the divergent risk-taking behaviour of
  building societies between the pre-war and inter-war periods\, and betwee
 n large and small societies in the latter period. It is argued in this pap
 er that the low risk-taking behaviour predicted of mutual institutions lik
 e building societies can only be expected of small\, regional societies wh
 ich were less exposed to competition than their larger\, city-based counte
 rparts which competed more aggressively for investor funds and mortgage bu
 siness. In the inter-war period\, increased competition between societies 
 led to levels of risk-taking hitherto unseen in the movement\, leading to 
 calls by the movement's leaders to consolidate the sector into the hands o
 f a few large societies. This process of consolidation promised to benefit
  members and to improve the overall efficiency of societies in the movemen
 t. The actual experience however shows that these promises were largely un
 met. Rather\, it is shown that the only beneficiaries of firm growth were 
 building society managers\, who were able to extract higher pay from empir
 e building.\n
LOCATION:Lucia Windsor Room\, Newnham College
END:VEVENT
END:VCALENDAR