Risky Business
Eugene and Russ discuss the risky behavior of financial institutions during crises, highlighting the flawed incentives that encourage taking more risk instead of less. They explore the consequences of allowing insolvent institutions to continue operating and the lack of accountability for managers.In this clip
From this podcast
EconTalk
Eugene White on Bank Regulation
Related Questions
What mistakes did banks make in the financial crisis, as discussed in the episode Vincent Reinhart on Bear Stearns, Lehman Brothers, and the Financial Crisis and the clip The Counterfactual Challenge?
Should banks take business risks as discussed in the episode State of Banking, Media, and AI — with Andrew Ross Sorkin and the clip Banking Competition Crisis?
Should banks take business risks as discussed in the episode SPECIAL EPISODE: Silicon Valley Bank Goes Bust and the clip Banking Industry Fragility?