Moneyterms: investment & finance explained

Mega-frauds and incentives

Thursday, 24th January 2008

The "mega fraud" at SocGen is closely related to the problem discussed here. There is an agency problem that no-one seems to have a solution for. Large groups of people whose actions have a huge impact, from CEOs to proprietary traders, have incentives to behave in a way that serves neither society or shareholders.

French Connection

Thursday, 24th January 2008

I really do not intend this blog for comments on individual companies — it is not what I do any more, and I am unlikely to do it particularly well without spending more time on it than I can spare, but Richard Beddard's recent post on French Connection sparked off a few more general thoughts.

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