Reuters - Video

Edition: US | UK | IN | CN | JP

Finance Videos

Cocaine Crisis: Did coked-up bankers cause the credit crunch?

Monday, April 29, 2013 - 03:28

April 29 - As former UK drugs tsar David Nutt blames cocaine use for fueling the financial crisis, we ask whether banking meltdown can really be blamed on the blow.

▲ Hide Transcript

View Transcript

She's the cocaine. A drug that -- -- feel like masters of the universe. And what former UK government drug czar David -- Blames for fueling the financial crisis. He claims credit committees may bankers believe -- confident and led them to take more risks. Former stockbroker Garret Anderson says the professor of pharmacology. May have a point. When you are and try -- You don't stand back and analyze things you you you're you're due for a 100% sure that what we're doing is the right thing and that kind of overconfidence and arrogance. To some extent. May explain it may help anyway how people can sell products that in my opinion where we're quite clearly doomed to fail at some. Scientists say trading in cart carrying goes hand in hand. Both the study of the mean the bodies feel good chemical which searches when we take risks. The thing about our country's. As 11 got cities it's about -- -- 41 I have is more you have more -- most sex more money you know -- -- bigger hide. Told tales of cocaine MPs have become the stuff that Citi legend off the -- -- oath act payment can happen -- in -- are having a Ponzi scheme. It became clear that his office was known as the North Pole beer because there was -- much -- in which is signs another with the -- kind. In 2007. Barkley is David -- was busted for dealing cocaine at his desk. In 2009 a branch of TGI Friday's was -- for dealing drugs still it's Wall Street patrons. And in his book the sellout. Journalist Charlie Gasparino. Tells powerful but Bear Stearns C edit Jimmy -- Allegedly kept a bottle of anti -- on his desk filled with cocaine. But surely does more to the crisis than -- Anthropologist -- -- -- studies behavior in the finance industry. He thinks blaming -- is a convenient excuse. The real problem of violence goes far deeper into the architecture of the bills sectors and then -- conflicts of interest across the -- that will keep on producing east crisis. Coke heads or no Coke heads. But this has taken -- connected to to claim it's all because they're only men there it's all because there are only using -- it's only compared to gambling. All the sort of -- to blame individuals -- -- promises structure. According to a UN report British cocaine you speak to 2007. A year after the bank bonuses reached a record eight point eight billion pounds. But the collapse of Lehman Brothers in 2008. Delta massive blow to the high octane lifestyles that have gone before. The nature of trading exchange is changing very much -- the effort to beat -- And I think the -- and the geeks are far less likely teams go. Generally tend to sort of brash. Terribly types who may -- -- before. I said but it sounds like a lot less fun and it used to be and maybe that's no bad thing maybe that means we gonna have slightly more sensible. A banking system less exuberance less insane. While there may be some substance to the argument claims that -- cools the crisis are clearly simplistic. But while the good times may be gone there's no doubt the world economy is still suffering from the mother of all come downs. -- hill dates for Reuters.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Cocaine Crisis: Did coked-up bankers cause the credit crunch?

Monday, April 29, 2013 - 03:28