Article written by Bruce G. Carruthers and 2009 DPDF State Violence Fellow Jeong-Chul Kim, featured in the Annual Review of Sociology, Volume 37, 2011:
The economic crisis of 2008–2010 stimulated an already growing sociological interest in finance. Before the crisis, disintermediation and securitization changed how the U.S. financial system operated, as bank operations shifted from the traditional originate-and-hold model to originate-and-distribute. During the 1980s and 1990s, the overall size and profitability of the financial system grew as deregulation unleashed financial innovation and reorganization. Global shifts toward capital market integration and liberalization created greater global interdependence. Households in the years before the crisis also altered their relationship to the financial system, increasing debt loads and overall exposure to the stock market. Research reveals the importance of politics for many financial market developments, various implications for corporate governance, the continuing significance of social factors within finance, and the role of theoretical and material devices in shaping financial practices. Key directions for future research focus on finance in relation to social inequality, informal sectors, valuation, and social networks.