The incentive to maximise profits over the short term, as the competitors are doing, to hire and remunerate with a short term perspective, to pass on the losses to clients that are unaware, to advise clients and provide them the financing, are at the roots of the conflicts. We haven’t discovered many things new from the recent crisis.
The failures of risk management – or should I say the underestimation of warnings from risk management – were evident also in the past.