Investment Bankers: Less trustworthy than prison inmates?

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According to The Atlantic, a new paper in Nature takes a scientific approach to the accusations of dishonesty in the banking industry.

Participants in the study indicated that they thought bankers would be more dishonest than prison inmates in over-reporting successful coin flips.

Questions:
1. According to economist Marie Claire Villeval, what are the implications of the study?
2. Even though banks are posting stellar profits, why aren’t students as attracted to investment banking?
3. Do you think that capping bonuses in this environment will reform the investment banking industry?

Source:
Lam, B. (2014). Is Cheating a Part of Banking Culture? The Atlantic, Nov. 21 (Retrievable online at http://www.theatlantic.com/business/archive/2014/11/is-cheating-a-part-of-banking-culture/383005/)