By linking bank executive compensation to long-term performance, ________ hopes to ________ in financial markets.
A) Long Term Capital Management; increase the use of complicated financial algorithms
B) the Squam Lake Group; reduce systematic risk-taking
C) American Insurance Group; increase the use of collateralized insurance obligations
D) the Fed; increase risk-sharing through the use of collateralized debt obligations
E) Fannie Mae; reduce subprime loans

Question

Quizplus · Accepted Answer

The Squam Lake Group is a group of academics and financial professionals who focus on financial regulatory reform. By linking bank executive compensation to long-term performance, they hope to reduce systematic risk-taking in financial markets.

By Linking Bank Executive Compensation to Long-Term Performance, ________ Hopes