Liabilities Bank - Market Update

Finextra: ASSET LIABILITY MISMATCH - (DEVIL AND THE DEEP SEA) SITUATION FOR BANKS ASSET LIABILITY MISMATCH - (DEVIL AND THE DEEP SEA) SITUATION FOR BANKS If a bank employee allows money to be fraudulently taken from a customer, who is responsible – the bank or the employee? That’s the question asked by Cyrus Hekmat, an L.A. entrepreneur, who claims ...

Washington Examiner: Fed official suggests more personal liability for bank executives to fix ‘culture’ A top Federal Reserve official on Monday suggested imposing rules to make bank executives more liable for failures or regulatory fines to improve banks’ “culture” and risk-taking. Speaking at the U.S. Fed official suggests more personal liability for bank executives to fix ‘culture’ The Heritage Foundation: Reducing Banks’ Incentives for Risk-Taking Via Extended Shareholder Liability It has long been understood that deposit guarantees and too-big-to-fail (TBTF) policies create a moral-hazard problem—they incentivize banks to take on too much risk by shielding depositors and ...