Oireachtas Joint and Select Committees

Wednesday, 28 January 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Professor Edward Kane:

That is my position. It is not that they should not have been doing it. If their only responsibility was to their explicit shareholders, they would be doing their duty by maximising the value of the stock. However, that is a defective ethical norm when tax payers are standing by with a guarantee. The norm of profit maximisation in these too big to fail firms around the world is misconceived.

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