Roskilde Bank Bankruptcy

Marco Latino-Madsen, Egle Ledekaite, Jannik Reumert Madsen, Hudda Arief, Jacob Michael Løwe & Nanna Ali

Studenteropgave: Semesterprojekt

Abstrakt

This 4th semester project is analyzing the reasons behind the 2008 bankruptcy of Roskilde Bank. On the theoretical level Friedman´s Monetarism is analyzed alongside Keynesianism, comparing the two and the effects of the financial liberation taking place since the 1980´ s. In order to assess other possible reasons for the bankruptcy, the Principal/Agent theory is used to analyze whether the bank management was working as efficiently and professionally as it is expected from a management in a bank of this size. It is analyzed that the bankruptcy is a result of the financial liberation mentioned above, combined with a too big and risky exposure towards the real-estate market. These two factors aggregated with bad banking caused this particular bankruptcy. The exposure to the real-estate market was a consequence of bad banking. It is concluded that there cannot be legislated against bankruptcies as the one analyzed in the paper, as there cannot be legislated against bad banking.

UddannelserBasis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis
SprogEngelsk
Udgivelsesdato18 jun. 2013

Emneord

  • Principal Agent
  • Roskilde Bank
  • Friedman
  • Bankruptcy
  • Keynes
  • Minsky