It’s a good reminder of what happens whenever group dynamics take over. As individuals we tend to be attuned to those around us. But when we’re in a group, we tend to get drawn into the dynamics of the group and lose track of other people, and even resentful when others intrude. We’re too caught…
Tag: risk
Remarks by Thomas J. Curry, Comptroller of the Currency, Before the Prudential Bank Regulation Conference
Comptroller of the Currency Thomas J. Curry emphasized the importance of Dodd-Frank and of active, engaged, and informed boards of directors. The second component of our heightened standards guidelines pertains to the responsibilities of large banks’ boards of directors. It provides that bank boards should have at least two independent directors and that all board…
How Does Executive Compensation Affect Bank Risk Taking: Evidence from FAS 123R by Yongqiang Chu, Tao Ma :: SSRN
We examine how executive compensation affects bank risk taking in mortgage lending using exogenous variations in stock option grants generated by the FAS 123R, which requires all firms to expense options. Using a difference-in-differences approach, we find that banks that did not expense options before FAS 123R (treated firms) significantly decreases their approval rates of…
