>If the bank is hiding the risks, that's another issue - I agree. I think the point is that this creates a lot of incentive for the bank to hide the risks that

>If the bank is hiding the risks, that's another issue - I agree. I think the point is that this creates a lot of incentive for the bank to hide the risks that they wouldn't otherwise have. Perhaps more importantly, it doesn't incentive them to prioritize things that might help them measure the risk better, so those sorts of improvements never get made and it just deteriorates over time.