Types of failures

摘要

Regulatory failures broadly fall into three categories: Rogue traders, systemic disruptions and outright acts of thievery. Rogues often are traders who just got lost in the game and took on more risk than they were authorized to -sometimes to earn a bonus, other times to feed their egos and often because they believe they have the tacit approval of management, usually with justification (after all, Jon Corzine actually was management). The victims usually are the company and its creditors.