Smarty_Pants

Specialized Risk Management May Lead to Less Return

We could simply let companies that took excessive risks and managed them poorly to go bankrupt instead of rewarding them with huge cash infusions.

That would certainly serve notice to the remaining firms to be more conservative in their risk taking.

Risk of financial death tends to improve the oversight urges of shareholders. Suits in equity against board members causing such bankruptcies probably wouldn't hurt either. It might serve to refocus the discussions in many boardroom meetings.