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Yes, of course they have. How does a company losing a sum equal to nearly 2 years of profit not have the most dramatic impact on senior officials at said compan
by bidirectional 6y ago
Yes, of course they have. How does a company losing a sum equal to nearly 2 years of profit not have the most dramatic impact on senior officials at said company? Where do you think the executive bonuses and value of shares (not just options, senior officials will already be vested) come from?
Beyond those losses, the head of investment banking and the head of risk were both fired yesterday.
The real problem is lower down the ranks, where someone on the trading floor can take outsized risk to boost their potential bonus, where worst case scenario they're fired without much ceremony and get another job somewhere else.
- Spinnaker_ 6y agoIt's called the Bob Rubin trade. For years you stack up risk and profit immensely from it ($125 million). When things eventually blow up you simply... step away. So sure, people were fired, but it's not like they are giving back all the money they made.
- whatshisface 6y agoPrincipal-Agent problem, we meet again.