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Culture, Not Leverage, Made Wall Street Riskier

Harvard Business Review

Corporate incentives and culture may be even more important in explaining what changed on Wall Street in recent years, and by placing too much emphasis on quantitative ratios like leverage, we may be missing some other important parts of the problem. Before the IPO in 1999, partners of Goldman Sachs owned equity in a private partnership.

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Why WikiLeaks Matters More (And Less) than You Think

Harvard Business Review

That's why the traditional understanding of everything from GDP to " jobs " to " profit " to " IPO " is limited. And the result of an undersupply of disclosure is toxic, perverse incentives. There are big and small, worse and better, more and less ethical ways to do the latter.

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