Subprime Crisis and Board (In-)Competence: Private vs. Public Banks in Germany

H. Hau,Marcel Thum

Published 2009 in Social Science Research Network

ABSTRACT

“The more interesting point is whether it is accidental that all the German banks in trouble are essentially publicly owned. [...] The episode tells us, once again, that Germany has too many banks, and in fact, too many bankers. Most of the supervisory board members of these institutions are themselves financially illiterate and do not fully understand the ins and out of investments in new financial instruments, such as CDOs or CDS. They have failed to implement proper risk management systems something which a private bank could ill afford.” [Münchau (2008)]

PUBLICATION RECORD

  • Publication year

    2009

  • Venue

    Social Science Research Network

  • Publication date

    Unknown publication date

  • Fields of study

    Not labeled

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  • External record

    Open on Semantic Scholar

  • Source metadata

    Semantic Scholar

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