Salient to Investors:

Yale and University of Chicago  research shows bank customers in South Africa accepted a higher rate of interest on loans when a photo of an attractive woman was included in the offer letter. Not linking the loan to a specific use also affected demand, as did the number of example loans.

Dan Ariely at Duke University found that cheating increased if something other than money was at stake, like securities or derivatives, and any cheating in the test made it more likely others would do the same. Ariely said regulators take the wrong approach by focusing on punishing wrongdoing after the event – they should be encouraging people to take the right path with clear regulations, ethical training and proper incentives.

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