Hedge Funds, the Deutsche Börse Affair and Predatory Anglo-American Capitalism

Boardroom trouble at Deutsche Börse, the company that operates Germany's main stock market, has recently provoked an important debate about competing capitalist models. Werner Seifert, Deutsche Börse's ousted Chief Executive, was eager to portray himself as the innocent victim of aggressive Anglo-American investors who had bought into his company but failed to understand its traditional operating ethos. In this, he was ably supported by key figures within the ruling Social Democratic Party, who, in order to shore up the party's core support, had increasingly come to blame overseas hedge funds for the development of German corporate governance models which prioritised profits over jobs. I review the SPD's structural reading of the Deutsche Börse affair, whilst comparing it to an alternative interest-based reading. The latter allows me to focus more closely on the issue which, more than any other, led to Seifert's downfall: his refusal to bow to the expressed interests of his own shareholders by pressing ahead, against their wishes, with a hostile bid for the London Stock Exchange. Seifert's eventual removal foreclosed the possibility of an integrated London-Frankfurt stock market and, somewhat ironically given the SPD's response to the affair, as a consequence it also prevented the entry of London's highly capitalised institutional investors into the German market for corporate control. The actions of Deutsche Börse's overseas shareholders might still be seen as evidence of a predatory Anglo-American capitalism. However, their successful removal of Werner Seifert may well have been responsible for temporarily keeping other financial predators at bay.     

OBSERVATION,THE POLICE AND PUBLIC ADMINISTRATION: INTRODUCTION

This conversation about the merits of ethnography in police studies began at the ‘Ethnography in Policing’ panel at the Political Studies Association Conference held in Leeds in 2005. Subsequent correspondence and occasional one‐to‐one meetings led to this symposium.     

POLICE RESPONSE TO DOMESTIC VIOLENCE: SITUATIONS INVOLVING VETERANS EXHIBITING SIGNS OF MENTAL ILLNESS*

Drawing on attribution theory, research on police discretion, and public attitudes toward mental illness, we examine attributional processes in police decision making in response to domestic violence situations involving veterans and nonveterans with signs of mental illness. Using data from experimental vignettes varying veteran status, victim injury, and suspect compliance administered to a sample of 309 police officers, the results indicate that 1) veterans are perceived as less responsible for troublesome behavior but more dangerous than nonveterans, 2) suspects’ veteran status has a significant effect on officers’ preference for mental health treatment versus arrest, and 3) part of the effect of veteran status on officer response is mediated by internal and external attributions for problematic behavior and by perceptions of dangerousness. The study empirically demonstrates countervailing processes in police decision making—recognition of the causes for troublesome behavior and the need for mental health treatment on the one hand and concern for community safety and enforcing the law on the other.     

CONSUMERISM AND THE PUBLIC SECTOR: HOW WELL DOES THE COAT FIT?

Consumerism attempts to redress the imbalance of power that exists between those who produce goods and services, and those for whom they are provided. To achieve this end, five basic principles have been evolved which seek to improve consumers' access, choice, information, redress and representation. The article examines the relevance of these principles to services provided by local government and the health service. Its conclusion – that they are useful but not necessarily enough – is perhaps surprising, given the author's concern to place consumers' interests centre stage in discussions about what public services are for, and how they should be run. The article then considers whether the messages of consumerism are reaching their mark, and finally points to those issues which managers of public services – both politicians and professionals – must face if consumerism is to leave a legacy of real value.     

The Contradictory Political Economy of Higher Education in the United Kingdom

The Coalition government's first Comprehensive Spending Review will cut 40% from university budgets by 2014. This will result in an increasingly tension‐prone political economy of UK higher education. As it is, the sector already sits uncomfortably astride the two distinct welfare models currently in existence in Britain. As the fees agenda has taken hold, university degrees have been increasingly susceptible to being rebranded as a strategic investment in the future, thus acting as an exemplar for the move towards an asset‐based system of welfare. Despite this, even in the post‐Browne world students will still not be charged the full market price of delivering degree programmes. Higher education institutions therefore continue to be redistributive mechanisms providing long‐term welfare‐enhancing transfer payments to their overwhelmingly middle‐class student base. The budget cuts and the associated changes to student finance will bring into stark relief the contradictions of serving two welfare masters at once.