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.
|Uddannelser||Basis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis|
|Udgivelsesdato||18 jun. 2013|
- Principal Agent
- Roskilde Bank