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

We document a significant decline in the level of generalized trust among finance professionals relative to the decline of trust in the general U.S. population, which is unique to the finance industry. The decline in finance professionals’ trust in others occurs across all subsectors in finance and at all hierarchy levels. It is related to a lack of confidence only in institutions that are relevant to the finance industry. The decline in trust is associated with a decreasing level of socialization among finance professionals as well as with changes in economic conditions and the professional environment in the finance industry