--- title: "Meaning & Key Takeaway of: So the misplaced assumption is that we…" description: "\"So the misplaced assumption is that we have this whole new institutional element where these [financial] institutions are looking after their own finan..." image: "https://sms4smile.com/quotes/i/f29/john-c-bogle-2199_assumption_so-the-misplaced-assumption-is-that-we-h_2345017.jpg" --- # So the misplaced assumption is that we have this whole new… ![“So the misplaced assumption is that we have this whole new institutional element where these [financial] institutions are looking after their own financial interests before the financial interests of the principals, princi-pals whose interests they are really bound to observe first.” quote by John C. Bogle](https://sms4smile.com/quotes/i/f29/john-c-bogle-2199_assumption_so-the-misplaced-assumption-is-that-we-h_2345017.jpg) [Download](https://sms4smile.com/quotes/i/f29/john-c-bogle-2199_assumption_so-the-misplaced-assumption-is-that-we-h_2345017.jpg) [Open image](https://sms4smile.com/quotes/i/f29/john-c-bogle-2199_assumption_so-the-misplaced-assumption-is-that-we-h_2345017.jpg) > “So the misplaced assumption is that we have this whole new institutional element where these \[financial\] institutions are looking after their own financial interests before the financial interests of the principals, princi-pals whose interests they are really bound to observe first.” [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Financial institutions often prioritize their own gains over those they serve, creating a conflict of interest. **In simple terms:** Banks may put their profit before clients’ needs. Key Takeaway Demand transparency and alignment of interests. Themes ethics finance conflict of interest Mood cautious critical Type analytical prescriptive When to use this quote - investment decisions - corporate governance - client advisory - policy making Key Concepts principal‑agent problem fiduciary duty regulation Questions to Reflect On - How can investors protect themselves? - What reforms could align interests better? A Different Perspective Regulatory capture can limit effectiveness of reforms. ★ ★ ★ ★ ★ No ratings yet [Assumption](https://sms4smile.com/quotes/about/assumption/) [Bounds](https://sms4smile.com/quotes/about/bounds/) [Elements](https://sms4smile.com/quotes/about/elements/) [Financial institutions](https://sms4smile.com/quotes/about/financial-institutions/) [Institutions](https://sms4smile.com/quotes/about/institutions/) [Interest](https://sms4smile.com/quotes/about/interest/) [Pals](https://sms4smile.com/quotes/about/pals/) ## Related quotes > [The Republicans are looking after the financial interests of the wealthiest individuals in this country.](https://sms4smile.com/quotes/edward-kennedy/the-republicans-are-looking-after-the-financial-interests-of-the/) [Edward Kennedy](https://sms4smile.com/quotes/author/edward-kennedy/) > [Mysterious can be cool, if you're in Hollywood and everyone's happy. 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Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [ I believe that the general growth in large \[financial\] institutions have occurred in the context of an underlying structure of markets in which many… ](https://sms4smile.com/quotes/alan-greenspan/i-believe-that-the-general-growth-in-large-financial-institutions/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of…](https://sms4smile.com/quotes/franklin-d-roosevelt/all-safe-deposit-boxes-in-banks-or-financial-institutions-have-been/) [Franklin D. 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In fact, stockholders have come out worse off after…](https://sms4smile.com/quotes/thomas-sowell/financial-institutions-are-not-being-bailed-out-as-a-favor-to-them-or/) [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) > [Financial institutions like to call what they do trading. Let's be honest. It's not trading; it's betting.](https://sms4smile.com/quotes/graydon-carter/financial-institutions-like-to-call-what-they-do-trading-let-s-be/) [Graydon Carter](https://sms4smile.com/quotes/author/graydon-carter/) > [I think something that forces financial institutions to write down underwater mortgages, I think, would be a sensible thing to do.](https://sms4smile.com/quotes/christina-romer/i-think-something-that-forces-financial-institutions-to-write-down/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) ## More by John C. Bogle > [The basic idea of retirement income is, to me, to get a check, two checks every month, one from your fixed income and one…](https://sms4smile.com/quotes/john-c-bogle/the-basic-idea-of-retirement-income-is-to-me-to-get-a-check-two/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [When you're young, you've got plenty of time to recover from your mistakes.](https://sms4smile.com/quotes/john-c-bogle/when-you-re-young-you-ve-got-plenty-of-time-to-recover-from-your/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I almost hate to say how proud I am of my career and, most of all, helping folks get the returns they deserve.](https://sms4smile.com/quotes/john-c-bogle/i-almost-hate-to-say-how-proud-i-am-of-my-career-and-most-of-all/) [John C. 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Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [We make too much out of past performance, and it's very misleading to investors. It causes them to move money around. They buy a…](https://sms4smile.com/quotes/john-c-bogle/we-make-too-much-out-of-past-performance-and-it-s-very-misleading-to/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [It's very difficult for any particular segment of the stock market to sustain superior performance. The watch word for our financial markets is, "reversion…](https://sms4smile.com/quotes/john-c-bogle/it-s-very-difficult-for-any-particular-segment-of-the-stock-market-to/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I do think that impact investing is not that effective. Shares go from investor A to investor B, and the company doesn't even know…](https://sms4smile.com/quotes/john-c-bogle/i-do-think-that-impact-investing-is-not-that-effective-shares-go-from/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I was born in an earlier generation and, as a group, my classmates at Blair Academy and Princeton University were as ethical, straightforward, and…](https://sms4smile.com/quotes/john-c-bogle/i-was-born-in-an-earlier-generation-and-as-a-group-my-classmates-at/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [My only regret about money is that I don't have more to give away.](https://sms4smile.com/quotes/john-c-bogle/my-only-regret-about-money-is-that-i-don-t-have-more-to-give-away/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [U.S. companies are innovative and entrepreneurial.](https://sms4smile.com/quotes/john-c-bogle/u-s-companies-are-innovative-and-entrepreneurial/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Successful investing is about owning businesses and reaping the huge rewards provided by the dividends and earnings growth of our nation's - and, for…](https://sms4smile.com/quotes/john-c-bogle/successful-investing-is-about-owning-businesses-and-reaping-the-huge/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [Without getting into brothels, there are ethical capitalists the problem is that there aren't enough of them. It is not "just a few bad…](https://sms4smile.com/quotes/john-c-bogle/without-getting-into-brothels-there-are-ethical-capitalists-the/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [The average hedge fund manager is going to earn zero per cent in extra return.](https://sms4smile.com/quotes/john-c-bogle/the-average-hedge-fund-manager-is-going-to-earn-zero-per-cent-in/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) [Explore all 179 John C. 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And when she got into music, she had that same diligence in…](https://sms4smile.com/quotes/laura-joplin/she-spent-hours-drawing-on-her-own-trying-to-perfect-her-craft-and/) [Laura Joplin](https://sms4smile.com/quotes/author/laura-joplin/) > [If they are, then the only ultimate truths are the particulars of concrete experience, and no postulate or general assumption is inherent in science…](https://sms4smile.com/quotes/chauncey-wright/if-they-are-then-the-only-ultimate-truths-are-the-particulars-of/) [Chauncey Wright](https://sms4smile.com/quotes/author/chauncey-wright/) > [If he's - the inference is that somehow he thinks slavery is a - is a noble institution I would - I would strongly…](https://sms4smile.com/quotes/george-w-bush/if-he-s-the-inference-is-that-somehow-he-thinks-slavery-is-a-is-a/) [George W. 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