Correspondence: Peter Yeoh, School of Law, Social Sciences and Communications, Millennium City Building, City Campus – South, Wulfruna Street, Wolverhampton WV1 1LY, UK

¹is a law researcher and financial law services lecturer. He holds multiple postgraduate degrees in economics, management and law from various UK universities. His research interests focus on corporate law, corporate governance and banking and financial services law. Yeoh has published in several journals relating to finance and law. He has previous work experience at senior levels in the financial services sector.

Received 13 August 2009; Revised 13 August 2009; Published online 24 September 2009.

Abstract

Sub-prime mortgages in the United States appear to have triggered the current global financial crisis. The crisis appears to be the combined result of adverse macro-economic conditions, bad corporate governance and loose regulatory oversight. Consequently, current views of the crisis differ primarily on the emphasis they attach to each of these perspectives, and tend to include other insights as contributing causes. This article, however, supports the view that flawed governance practices in both the public and private sector are largely responsible for the financial catastrophe. It also argues that the current tendency to blame it on the United States is overplayed and that bad governance practices are a global phenomenon. The article relies on secondary data analysis and observations of relevant banking practices to support this contention.