ABSTRACT
This chapter outlines the ethical issues raised by modern finance. It describes the legal and institutional framework of the system. The chapter considers the roles of financial intermediaries, such as banks and investment vehicles, noting in addition particular questions that arise with specific financial instruments, along with issues related to risk. It provides two practices of financial markets, speculation and high-frequency trading. The chapter introduces some alternative models of finance. Finance is concerned with money, credit, assets, debt, risk, banks, investment, and a variety of investment funds, but it goes further than that: financing an activity really is creating the architecture for reaching our goals, and providing stewardship afterwards to protect and conserve the achievement of that goal. Traditionally banks were financed by deposits, granted medium and long-term credit to households and companies, maintained close relationships with their customers and were integrated into their local communities.
