Simon Johnson and James Kwak - Lehman Brothers and the Persistence of Moral Hazard - washingtonpost.com

Simon Johnson and James Kwak - Lehman Brothers and the Persistence of Moral Hazard - washingtonpost.com: "Moral hazard already existed in the system on at least three levels.First, bank employees and managers had asymmetric compensation structures.....Second, shareholders had the same payoff structure. Banks are highly leveraged institutions; every dollar contributed by shareholders is magnified