There is a long lag between taking on excessive risk and failure. In that period, your excessive risk taking will likely show excessive growth, which will like

There is a long lag between taking on excessive risk and failure. In that period, your excessive risk taking will likely show excessive growth, which will likely lead to stronger stock prices. If you’re a banking exec, your salary is linked to stock performance. You can easily run up 5-8 years before the whole edifice crumbles, pocketing fat bonuses in the interim. Who cares if Joe Shareholder gets left with nothing at the end? You and all your exec buddies can make off like bandits in the interim.