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You become the CEO of a small regional bank. You can draw small regional bank pay for several years until they find someone else to be caretaker or you can inv
by bradleyjg 4y ago
You become the CEO of a small regional bank. You can draw small regional bank pay for several years until they find someone else to be caretaker or you can invest imprudently, massively expand the size of the bank and be a growth CEO with growth CEO pay until the whole thing blows up.
Which strategy has a higher expected value?
- refurb 4y agoHow do you "massively expand the size"? Please explain step by step.
- bradleyjg 4y ago1) invest in riskier but higher yielding bonds than all the other banks 2) with part of the proceeds from #1 pay more interest than other banks 2b) optionally use part of the money from #1 to give free ski trips to “influencers” like VCs in a position to recommend banks 3) watch the deposits roll in