This paper by New York University’s Jonas Prager outlines the major changes in the financial structure as well as the focal events that characterised the 2007-2008 global financial crisis and considers the evidence for the crucial role played by misaligned incentives.
Misaligned incentives, bank mismanagement, and troubling policy implications
banks, financial crisis, Goldman Sachs, incentives, misalignment, New York University, short termism
mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
As sovereign wealth funds continue to grow, some are running into tussles with citizens over particular investments or the purpose of the fund. Transparency and greater engagement can help.
The challenging market environment is putting pressure on pension funds. In response, many are lowering return targets, rather than taking on more risk or requesting larger contributions.
USS's COO Howard Brindle is one of the most experienced investment operations executives in the pension industry, he talks about business transformation and the importance of talent.
The more political appointees and worker representatives sit on US pension fund boards, the more those funds will respond to incentives that encourage riskier investing, research has found.
Calls for a long-term investment focus have lacked a sophisticated metric to back them up – until now. The McKinsey Global Institute has found tangible benefits from shunning short-termism.
It’s impossible for asset owners to predict the year’s geopolitical upsets. Diversification will be the key to a resilient portfolio.
Top1000funds.com is the market leading news and analysis site for the world’s largest institutional investors. It focuses on leading the global investment industry to continuous improvement through case studies of best practice in governance and decision making, portfolio construction and efficient portfolio management, fees and costs, and sustainable investing.
The publication pushes the industry to question whether status quo processes and behaviours to tackle risks and opportunities will be sufficient in the future, and actively campaigns for diversity, sustainability, transparency, innovation and better alignment of fees in the investment industry.
Top1000funds.com is read by investment professionals in more than 40 countries.
Leave a Comment
You must be logged in to post a comment.
Login