Subtext Books

Satisfy Your Curiosity

Downtown St. Paul's Independent Bookstore at
6 West Fifth Street, St. Paul Minnesota 55102.

9am-9pm Monday through Saturday
10am-6pm Sunday
 

Read Relax Work Wonder Sip Search Chat Choose

Back to All Events

University of Minnesota Law Professors Claire A. Hill and Richard W. Painter present their book Better Bankers, Better Banks: Promoting Good Business Through Contractual Commitment

 

Better Bankers, Better Banks

Promoting Good Business through Contractual Commitment

Claire A. Hill and Richard W. Painter

The failure of the America’s financial institutions, which contributed to worldwide economic collapse, was in large part a failure of banks to appropriately assess risk. Seven years after the financial crisis, bankers continue to make investments that are high-risk and highly speculative—at great cost to the potential stability of the financial system.

Claire A. Hill and Richard W. Painter argue that the banking industry is lacking in scruples because the current culture of banking continues to accept—and even reward—unscrupulous behavior. Bankers behave as they do because they are rewarded—in money, status, and better professional prospects—for doing so. Sometimes, incentives are linked to genuinely good results, like a truly profitable transaction. Too often, however, they reflect problematic behavior: The results yielding a bonus are fleeting and timed to coincide with a measurement period. Or a bank makes a profit by selling a customer an unsuitable investment. Banks have long been regulated, but regulatory solutions alone will not be sufficient to create change because they are directed at institutions and not at bankers themselves. Hill and Painter argue that what is needed is a return to a system that incorporates some personal liability.

Claire A. Hill is professor and the James L. Krusemark Chair in Law at the University of Minnesota Law School. Richard W. Painter is the S. Walter Richey Professor of Corporate Law at the University of Minnesota Law School.

Powered by Squarespace. Background images by Ania Keliher. © Subtext Books 2013