Financial Crisis: Flawed Incentives Cause Banking Crises

Essay from the year 2010 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: A, Indiana University (Kelley School of Business), course: Commercial and Investment Banking, language: English, abstract: This paper is a comparison between the current financial crisis and the asian crisis from 1997/98. The author argues that one of the main reasons that caused both crisis were flawed incentives. The paper was a basis for a class discussion, hence it is strongly focused on this argument.