At the same time, when packaging loans and in lending contracts, they looked not at appropriate incentive structures but, above all, at tradability. If it can be traded, the risk can then be fobbed off on a third party – or, at least, that is how the thinking goes. In effect, securitisation techniques dissolved the link between oversight and the ultimate bearer of risk.
The advantages of intermediation were forsaken without creating sustainable contractual solutions at the same time. Even in theory, there was no way that could work.