comments

Investment banks incentivised to move into riskier activities

Otherwise sensible public policy changes had the unintended consequence of pushing investment banks into riskier activities.

RELATED ARTICLESExplain
⌅
The Global Financial Crisis
⌃
Long-term causes of the financial crisis?
⌃
Unintended consequences of earlier public policy choices
■
Investment banks incentivised to move into riskier activities
↳
How were investment banks incentivised to increase risk?
↳
Originating and distributing complex derivative securities
↳
Extensive use of leverage
⇤
Pathology in the Credit Default Swaps market
□
Partial repeal of Glass-Steagall act
□
Investment banks entirely outside the regulatory net
□
Meddling with interest rates caused bubble
□
Regulatory changes encouraged home ownership
□
US policies to encourage home ownership promoted risky lending
□
US spending funded by credit
□
Graph of this discussion
Enter the title of your article


Enter a short (max 500 characters) summation of your article
Enter the main body of your article
Lock
+Comments (0)
+Citations (0)
+About
Enter comment

Select article text to quote
welcome text

First name   Last name 

Email

Skip