MBA Programs Face Their Role in Financial Crisis

By Nick McMaster,  Newser Staff

Posted Mar 17, 2009 3:50 PM CDT

(Newser) – Executives have taken a lot of blame for the financial crisis, whether for focusing on short-term gains in stock price or placing too much faith in ultra-complex financial instruments, writes Bradford Plumer for the New Republic. But what about the business schools that taught them to manage that way in the first place? With Wall Street in ruins, MBA programs are re-examining priorities.

“In a way, finance professors caused this problem—I’m not bragging about this,” says Charles Trzcinka, finance chair at Indiana University’s B-school, who points out that professors taught budding execs about mortgage-backed securities and credit default swaps without a full understanding of how the instruments could fail.

Business schools may have played a role in the financial crisis through what they taught their students.
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There were so many people who just wanted to learn enough to get a job in this field. This market was full of people who were really just salesmen.
- Charles Trzcinka,
Indiana business-school professor

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