The Chief Executive was a dominant figure who made sure that he alone took all important decisions. There was no culture of open debate and discussion among senior management, with the result that other members of the board of directors did not feel able to challenge the Chief Executive’s decisions. Many bank boards lacked banking experts.
Thus, notwithstanding the effects of multi-billion dollar write-downs on the earnings and share prices of some large institutions, the banking system remains sound. Nevertheless, the market strains have been serious, and they continue to pose risks to the broader economy.