TERTULIA (Research Seminar –  Finance ) –  JOHN THANASSOULIS – Friday October 16th – C/Pinar, 18 Room P-212 2:00 pm

Abstract  This paper studies the agency problem between bank management, shareholders and the taxpayer. Executive bonuses increase in the probability the bank is too-big-to-fail. Bank management recognise it is very likely optimal to select risky projects which exploit the taxpayer, implying project selection effort (e.g. due diligence) is more expensive to incentivise. This agency problem…

Details