https://news.umich.edu/its-time-to-hold-bank-executives-financially-accountable-u-m-researchers-say/
created by mareacaspica on 27/02/2025 at 09:51 UTC
178 upvotes, 3 top-level comments (showing 3)
Comment by AutoModerator at 27/02/2025 at 09:51 UTC
1 upvotes, 0 direct replies
This is a sub for civil discussion and exchange of ideas
Participants who engage in name-calling or blatant antagonism will be permanently removed.
If you encounter any noxious actors in the sub please use the Report button.
This sticky is on every post. No additional cautions will be provided.
1: /message/compose/?to=/r/Foodforthought
Comment by Wagllgaw at 27/02/2025 at 16:35 UTC
4 upvotes, 0 direct replies
Would have liked a bit more detail & thought on this. So many questions come to mind:
How much liability should they bear (3 years, 5 years, etc.)? Is there a clear connection between the risk taker & liability? What specifically does "executive" mean? Does the professor think these executives would try to get insurance against payout? What if executives demand the bank itself cover this risk? How do we know this approach wouldn't lead to banks becoming overly conservative, constraining growth? Is there any possibility that risk investments are able to seek other financing avenues besides "banks"?
Comment by Drash79 at 27/02/2025 at 22:49 UTC
0 upvotes, 0 direct replies
Commie