In many situations the payment of compensation for lapses on the part of the banks is viewed purely from the staff accountability angle, leaving the customer in the lurch for months. This attitude must change. What kind of balance can be struck between competition and correctness? Are customer service and compliance mutually exclusive or inclusive?
Conversely, when asset values fall, deleveraging occurs as the value of existing collateral declines, with negative implications for the real economy. Related to this is the work of Reinhart and Rogoff in their book “This time is different” where they show that the recovery from a financial crisis takes much longer than that of other crises.