Tag: principal-agent-problem

Tag: principal-agent-problem

1 page tagged principal-agent-problem.

Pages

• Chapter 59: The Collapse of Investment Banking — Economics 101

  Misaligned incentives, fraudulently rated CDOs, and an unhedged insurance market drove Bear Stearns and Lehman Brothers to the brink — and beyond. This chapter explains how the principal-agent problem, credit default swaps, and moral hazard combined to trigger the 2008 global credit freeze.

Related tags

• investment-banking
• credit-default-swaps
• moral-hazard
• too-big-to-fail
• financial-crisis
• systemic-risk