The XX Factor: What women really think.

Iceland's Big Freeze

Back in 2001, as the Internet boom turned into a bust, M.I.T.'s Quarterly Journal of Economics published an intriguing paper called "Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment." The authors, Brad Barber and Terrance Odean, gained access to the trading activity in over 35,000 households, and used it to compare the habits of men and women. What they found, in a nutshell, is that men not only trade more often than women but do so from a false faith in their own financial judgment. Single men traded less sensibly than married men, and married men traded less sensibly than single women: the less the female presence, the less rational the approach to trading in the markets.

One of the distinctive traits about Iceland's disaster, and Wall Street's, is how little women had to do with it. Women worked in the banks, but not in the risktaking jobs. As far as I can tell, during Iceland's boom, there was just one woman in a senior position inside an Icelandic bank. Her name is Kristin Petursdottir, and by 2005 she had risen to become deputy C.E.O. for [Icelandic bank] Kaupthing in London.... In 2006, she quit her job. "People said I was crazy," she says, but she wanted to create a financial-services business run entirely by women. To bring, as she puts it, "more feminine values to the world of finance."

Today her firm is, among other things, one of the very few profitable financial businesses left in Iceland. After the stock exchange collapsed, the money flooded in. A few days before we met, for instance, she heard banging on the front door early one morning and opened it to discover a little old man. "I'm so fed up with this whole system," he said. "I just want some women to take care of my money."