Online citations, reference lists, and bibliographies.
← Back to Search

Making Sense Of Financial Crisis And Scandal: A Danish Bank Failure In The First Era Of Finance Capitalism

P. H. Hansen
Published 2012 · Economics

Save to my Library
Download PDF
Analyze on Scholarcy
In this paper I discuss a dramatic financial collapse and scandal in Denmark in the interwar period. I analyze the asset price bubble from 1914 to 1920 and the subsequent failure in 1922 of Scandinavia's largest bank, the Danish Landmandsbanken, as well as the downfall of its CEO Emil Glückstadt. I discuss the sense-making process, first during the bubble and then following Landmandsbanken's collapse and Glückstadt's fall from power in 1922, and finally until the introduction of a new bank act in 1930. I further argue that such crises and scandals force contemporaries to make sense of the dramatic fall from the top of society of these icons and of their role in the collapse of their banks. I view the sense-making process as centered on the construction of narratives that explain the crisis and enable or constrain institutional response to the crisis. To conclude, I argue that the process of sense-making in the case of Landmandsbanken can be generalized as the way in which society enforces norms and values in cases of dramatic financial crisis and scandal.
This paper references
From growth to crisis
P. H. Hansen (1991)
This Time Is Different: Eight Centuries of Financial Folly
Carmen M. Reinhart (2011)
Narrative Construction as Sensemaking: How a Central Bank Thinks
Mitchel Y. Abolafia (2010)
The evolution of financial institutions and markets in twentieth-century Europe
Y. Cassis (1995)
Thick Description: Towards an Interpretive Theory of Culture
C. Geertz (1973)
Bank Regulation in Denmark from 1880 to World War Two: Public Interests and Private Interests
Per H. Hansen (2001)
Threats to International Financial Stability.
Lionel Price (1988)
Dansk biografisk leksikon
Svend Cedergreen Bech (1933)
Financial crises and the world banking system
F. Capie (1986)
From Predators to Icons: Exposing the Myth of the Business Hero
M. Villette (2009)
The New Financial Capitalists
G. Baker (1999)
“ sådan er Det ( Drawing ) . ” In Svikmøllen
David. Carr (1916)
The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance
R. Chernow (1990)
The ‘2008 Crisis’ in an economic history perspective: Looking at the twentieth century
C. Kobrak (2011)
Sensemaking in organizations
K. Weick (1995)
Financial crises : institutions and markets in a fragile environment
E. I. Altman (1978)
Co-operative liberalism: Denmark from 1857 to 2007
S. Andersen (2008)
The New Financial Order: Risk in the 21st Century
R. Shiller (2003)
The Interpretation of Cultures
R. Fenn (1973)
Real and Pseudo-Financial Crises
A. Schwartz (1987)
The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle
J. Schumpeter (1934)
A Monetary History of the United States, 1867-1960
Rendigs Fels (1964)
“ Competitive Financial reregulation : An International Perspective . ”
edward J. Kane
Unsettled Account: The Evolution of Banking in the Industrialized World since 1800
R. Grossman (2010)
Das Finanzkapital : eine Studie über die jüngste Entwicklung des Kapitalismus
Rudolf Hilferding (2000)
Organizational Culture and Organizational Change: The Transformation of Savings Banks in Denmark, 1965–1990
P. H. Hansen (2007)
The Death of the Banker: The Decline and Fall of the Great Financial Dynasties and the Triumph of the Small Investor
R. Chernow (1997)
Lessons from the North Atlantic financial crisis
W. Buiter (2008)
Scylla or Charybdis? Historical Reflections on Two Basic Problems of Corporate Governance
N. Lamoreaux (2009)
The Economic Sociology of Capitalism
R. Swedberg (2002)
The Theory Of Economic Development
J. Schumpeter (1934)
Origins of the Financial Market Crisis of 2008
A. J. Schwartz (2009)
Fool's Gold: How the Bold Dream of a Small Tribe at J.P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe
G. Tett (2009)
Casino Capitalism: How the Financial Crisis Came About and What Needs to be Done Now
H. Sinn (2010)
Networks, Narratives, and New Markets: The Rise and Decline of Danish Modern Furniture Design, 1930–1970
P. H. Hansen (2006)
The Oxford Handbook of Political Institutions
R. Rhodes (2008)
Working the Past
C. Linde (2009)
House of cards : a tale of hubris and wretched excess on Wall Street
William D. Cohan (2009)
The Debt-Deflation Theory of Great Depressions
I. Fisher (1933)
“ The sickness beneath the slump . ” New York Times , June 11 , 2011 . Vestberg , Jens . “ emil Glückstadt . ” In
Wallison (1926)
Den Danske Bank
M. Pohl (1994)
Too big to fail : the inside story of how Wall Street and Washington fought to save the financial system--and themselves
A. R. Sorkin (2009)
Greed and Corporate Failure
S. Hamilton (2006)
The Norwegian banking crisis: Managerial escalation of decline and crisis
L. Lai (1994)
Governing the Modern Corporation: Capital Markets, Corporate Control, and Economic Performance
R. C. Smith (2006)
The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value
G. Baker (1998)
A Theory of Systemic Fragility
Minsky (1977)
Thick Description : Toward an Interpretive Theory of Culture by
I. Her (2008)
Supercapitalism: The Transformation of Business, Democracy, and Everyday Life
R. Reich (2007)
Как вырабатывается понимание экономического спада: интерпретативная теория хозяйственного действия
Mitchell Abolafia (2007)
Handbook of new institutional economics
C. Ménard (2005)
Financialization of the Global Economy
R. Dore (2008)
A Theory of Corporate Scandals: Why the USA and Europe Differ
J. Coffee (2005)
Other People's Money and How the Bankers Use It
Louis D. Brandeis (1986)
Manias, Panics and Crashes: A History of Financial Crises
W. Lewis (1978)
I samfundets tjeneste
Marie Højlt (2004)
Finansielle krisers efterspil i (Danmarks)historien, 1857-1930
P. H. Hansen (2010)
Silencing the Past: Power and the Production of History.
Donald L. Donham (1997)
Framing Finance: The Boundaries of Markets and Modern Capitalism
A. Preda (2009)
Business Failure and Civil Scandal in Early Modern Europe
T. Safley (2009)
Three Narratives About the Financial Crisis
Peter J. Wallison (2011)
Universal Banking in the Twentieth Century: Finance, Industry and the State in North and Central Europe
D. Ross (1994)
Greed and Corporate Failure: The Lessons from Recent Disasters
Alicia Micklethwait (2006)
Culture and the Practice of Business History
K. Lipartito (1995)
Animal spirits : how human psychology drives the economy, and why it matters for global capitalism : with a new preface by the authors
George A. Akerlof (2009)
Before the Glass-Steagall Act: An analysis of the investment banking activities of national banks
E. White (1986)
Governing the Modern Corporation
R. C. Smith (2006)
Working the Past: Narrative and Institutional Memory
C. Linde (2008)
Liquidated: An Ethnography of Wall Street
K. Ho (2009)
Living in a fool’s paradise: the collapse of Barings’ Bank
H. Drummond (2002)
Institutions and the Performance of Economies over Time
D. North (2005)
Fortifying the Financial Architecture: Unanswered Questions
Barry J. Eichengreen (2010)
Thinking, Fast and Slow
D. Kahneman (2011)
Dansk biografisk haandleksikon
Svend Dahl (1920)
Danmarks økonomiske historie 1910–1960
Jan Bohlin (2011)
“ Telling the narrative of the Financial Crisis : not Just a Housing Bubble . ” Brookings , 2009 . Fisher , Irving . “ The Debt - Deflation Theory of Great Depressions . ” Econometrica
J. Douglas (1933)

This paper is referenced by
The state as the investor of last resort: a comparative study of banking crises in Denmark and Sweden
H. Sjögren (2019)
Uses of the Past: History and Memory in Organizations and Organizing
Mads Mordhorst (2016)
Uses of the Past: History and Memory in Organizations and Organizing
Uses of the Past: History and Memory in Organizations and Organizing
Opinions: Business History and Anthropology
Walter A. Friedman (2014)
Using history in the creation of organizational identity
M. Zundel (2016)
Can Business History and Business Anthropology Learn from Each Other
R. Wadhwani (2014)
Thomas Piketty , Capital in the Twenty-First Century. Translated by Arthur Goldhammer
P. H. Hansen (2014)
From Finance Capitalism to Financialization: A Cultural and Narrative Perspective on 150 Years of Financial History
P. H. Hansen (2014)
Collaborative Corporate Strategy Research Programmes (C.C.S.R.P.) a Conceptual Integrative Strategic Framework for a Practical Research Agenda
N. Khan (2013)
Call for Papers Special Issue on Uses of the Past: History and Memory in Organizations and Organizing
From ‘History as Told’ to ‘History as Experienced’: Contextualizing the Uses of the Past
C. Lubinski (2018)
The Year in C-SPAN Archives Research: Volume 4
Robert X. Browning (2018)
Financial fraud, scandals, and regulation: A conceptual framework and literature review
Hugo van Driel (2019)
Call for Papers Special Issue on Uses of the Past: History and Memory in Organizations and Organizing
Making Sense of Business and Community in Hollywood Films: 1928–2016
P. H. Hansen (2018)
Hall of Mirrors: The Great Depression, the Great Recession, and the Uses—and Misuses—of History
Per H. Hansen (2015)
Uses of the Past: History and Memory in Organizations and Organizing
History as Organizing: Uses of the Past in Organization Studies
R. Wadhwani (2018)
Business History: A Cultural and Narrative Approach
P. H. Hansen (2012)
Uses of the Past: History and Memory in Organizations and Organizing
Ethnomethodology and the production of history: studying ‘history-in-action’
A. Whittle (2015)
Financial fraud, scandals, and regulation: A conceptual framework and literature review
H. V. Driel (2019)
Semantic Scholar Logo Some data provided by SemanticScholar