Reading: The Great Bank Escape by Anat Admati – Project Syndicate
by Gilbert Keith
"Small shareholders cannot easily influence banks’ decisions, especially on complex risk-related issues. And banks’ boards of directors, which wield ultimate control, are not legally required to consider the broader impact of their actions on others. Instead, their narrow perspective – which tends to coincide with executives’ preferences even at the expense of other shareholders – dictates their decision-making."
It’s sad that this has to be reiterated in 2013, a full 5-6 years after what transpired in 2007…