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The banks' primary role is first to create the asset, and then only to seel it or keep it.

Of course, if the model is that they don't keep it (and note that unitisation falls into that category), then they may be incentivised to structure worse assets.

And contrary to what you think, doing proper risk analysis is actually pretty damn expensive and difficult. Bankers' pay (as highly qualified professionals) is justified, to that extent.


In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Mar 24th, 2009 at 01:00:48 PM EST
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