A Manager/owner Agency Problem for Thrifts When Capital Ratios Were

A manager/owner agency problem for thrifts when capital ratios were low was

A) managers would inflate salaries and perks for themselves.
B) managers were encouraged to assume excessive credit risk.
C) managers were encouraged to sell low-yielding mortgages, book the loss, and reinvest in higher yielding 1-4 family residential mortgages.
D) managers were encouraged to reduce risk to dangerously low levels.