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Paul V. Azzopardi
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Paul V. Azzopardi is an investment counsel. Paul initially trained and worked as a professional accountant and then obtained an MBA from the University of British Columbia. He has worked in the securities industry for the last twenty-five years as a manager of private client accounts, mostly... More
My company:
ConstantIncome Investment Management Inc.
My blog:
ETF-Online-Investing.com
My book:
Behavioural Technical Analysis - An Introduction to Behavioural Finance and its Role in Technical Analysis
  • Lehman as Antidote to Moral Hazard 0 comments
    Sep 15, 2009 6:37 PM | about stocks: LEH
    Although I think that the decision to let Lehman go should be deplored - considering that it was unfair since all the other firms were being saved and considering that it was foolhardy since the Lehman failure was a big shock to a financial system which was already on the brink of collapse  - one positive aspect of the decision was that it acted as an antidote to the inevitable spreading of moral hazard. 

    The regulators did not have all the tools they wished they had to impose order on the financial market place and when Lehman went down it meant two things: (1) that not all would necessarily be saved, and (2) if you were a player, you had better play ball when the regulator winked.

    Stocks: LEH
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