There's downside for shareholders, but not for the employees running the bank. As for the top executives, they may get pain when the bank fails, but payouts for

There's downside for shareholders, but not for the employees running the bank. As for the top executives, they may get pain when the bank fails, but payouts for top executives are genreally disproportionately in the good years. So a few good years of high yields are probably a financial incentive that overwhelms the risk of eventual ruin.