The field of quantitative analysis is often mistaken to be a discipline free from ethical burdens. The quantitative financial analyst or “quant” profession holds a position of significant responsibility as the keeper of mathematical models used in complex derivative security pricing and risk management. Despite this responsibility very few postgraduate programs address the teaching of ethics and professional standards in their curriculum, and the credibility of the profession has suffered as a result of several high-profile financial losses. Some of these (...) failures could have been avoided and their impacts diminished if ethical considerations were integrated with quantitative method. Appropriate development in ethics education for quants is needed to identify points in the decision-making process where ethical questions can arise, and to explain how quants can protect stakeholders from the costs of unethical behaviour. An approach to ethics education needs to be flexible and allow for different methods to infuse ethical coverage into the course. Such an approach will go some way towards aligning the profession with other specialisations in banking and avoid the need for complex and unnecessary regulation. (shrink)

Quantitative analysts or “Quants” are a source of competitive advantage for financial institutions. They occupy the relatively powerful but often misunderstood role of modeling, structuring, and pricing complex financial instruments in the capital markets. But Quants often function in a discipline free from ethical burdens. Models used to price complex instruments are usually beyond the mathematical understanding of financial sector participants who rely heavily on the integrity of the Quant who built them. Although there has been some attempt to cover (...) the ethics of mathematics applied to the capital markets, designing a set of rules to guide the ethical behavior of Quants cannot be made explicit and remains inexpressible. Because Quants generally experience a sense of detachment from moral obligation, there is a growing need to convert moral detachment into engagement. Our framework is indebted to key elements of Wittgenstein’s practical ethics philosophy and Rawls’ justice principle. The burden of balancing justice as fairness as defined by Rawls with the inability to explicitly articulate ethical rules as defined by Wittgenstein must fall to the Quant. We propose that the threshold delineating the barrier between ethical detachment and engagement can only be defined by the Quants themselves. It is their moral duty to disclose their level of ethical engagement when their models are put into practice. (shrink)

Some scholars argue that Aquinas inconsistently characterizes Christ's human nature as both common and individual. This study shows the consistency of his position by placing it in its historical and metaphysical context. In light of Aquinas' reaction to Peter Lombard's «three theories» of the Incarnation, it is shown that this objection is based on an inaccurate account of how the different ways of understanding the human nature are related to the supposit.

In this paper I argue that Maritain rejects any attempt to reduce ethics to a set of moral rules that can be derived from natural law. Rather, in his work we find a nuanced account of the virtue of prudence, which applies the precepts of the natural law to particular situations. We also find him insisting that the appropriate animation of ethical action springs not from the law, but from love. Maritain’s metaphysical existentialism leads him to insist that the natural (...) law is never sufficient to meet the exigencies of determining action. Accordingly, the authentically metaphysical basis of his ethics is thoroughly existential (in the Thomistic sense) and must include the prudential governance that guides human action, because an account of human nature and its ends only informs us of the range of possibilities for human goodness, without showing how to actually achieve them. In arguing for this claim I begin by situating Maritain’s ethical discussion in the context of his metaphysics. I then explore his understanding of natural law and its limitations when it comes to governing action. Finally, I explain the place of prudence as the virtue that applies the natural law to the particular. From this the role of existence and love as the interconnected basis for the foundations of ethics in Maritain’s thought is made clear. (shrink)