How were investment banks incentivised to increase risk?

How were the investment banks incentivised to move into riskier activities?

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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?
Deregulation of stockbroker commissions in 1970s
Allowing mixing of commercial and investment banking in 1990s
Investment banks allowed to be corporations rather than partnerships
Originating and distributing complex derivative securities
Extensive use of leverage
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