2 Pages Posted: 23 Mar 2012
Date Written: March 19, 2012
The collapses of major financial institutions during the latest crisis have 5 common causes both internal (authoritarian leader, failing on internal governance system, use of leverage) or external (access to cheap short-term funding, regulators nonchalance). The lessons to be drawn are an improvement in internal governance with Board of directors really competent and independent from the leader, and a better regulation which doesn’t mean an overregulation (the more obvious risk in 2012).
Keywords: corporate governance, financial regulation, financial crisis, independent director
JEL Classification: G11, G12, G15
Suggested Citation: Suggested Citation