comments

Vast scale of rewards encouraged complicity with system

The vast scale of the individual and corporate rewards available as the market grew and evolved strongly incentivised the participants not to rock the boat.

RELATED ARTICLESExplain
⌅
The Global Financial Crisis
⌃
Immediate triggers of the financial crisis?
⌃
Pathology in the Credit Default Swaps market
■
Vast scale of rewards encouraged complicity with system
↳
Assymetrical benefit/risk structure incentivises big risks
□
CDS market complex, unregulated and secretive
□
Complex financial instruments that few understood
□
Credit default swaps became divorced from underlying value
□
Hedging/Netting contracts created web of vulnerability
□
Monoline insurers struggling to meet guarantees
□
Reckless securitisation on top of reckless lending
□
Resources of regulators limited in comparsion to market players
□
Speculative swaps grew to dwarf real insurance swaps
□
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