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Moral Hazard
By bailing out the banks, did Western governments simply let the bankers who caused the crisis off the hook?
As part of the Βι¶ΉΤΌΕΔ's Aftershock Series Audrey Tinline is asking whether the billions of dollars which have been given to failing banks since the collapse of Lehman Brothers, have aggravated a problem known as moral hazard. Despite the widespread calls to restrict their bonuses, many observers believe that government support for the financial sector means bankers are simply being encouraged to take the same risks again in future.
Last on
Mon 7 Sep 2009
04:40GMT
Βι¶ΉΤΌΕΔ World Service Online
Broadcast
- Mon 7 Sep 2009 04:40GMTΒι¶ΉΤΌΕΔ World Service Online
Βι¶ΉΤΌΕΔ World Service Archive
This programme was restored as part of the World Service archive project