The Death of Trust Across the U.S. Finance Industry

Abstract

Across all industries in the U.S., we document a significant and unique decline in the level of generalized trust among finance professionals relative to the decline of trust in the general U.S. population. This decline occurs in different age cohorts and among different levels of seniority. It is related to a lack of confidence only in institutions that are relevant to the finance industry. The relative decline of trust is associated with changes in economic conditions, the professional environment in the finance industry, and with the decreasing level of socialization among finance professionals.