The impact of the 2008/9 ﬁnancial crisis on ﬁnancial service ﬁrms suggests that loss of legitimacy is likely to have the following adverse effect:

Question

Quizplus · Accepted Answer

The loss of legitimacy can lead to a lower valuation by investors, loss of employee morale, and adverse government policies, as all these factors are interconnected and can be triggered by a crisis of confidence in financial service firms.

The Impact of the 2008/9 ﬁNancial Crisis on ﬁNancial Service