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Opinion
Matt Levine

Levine on Wall Street: Gaming the Banks

This linkwrap cites both Pierre Bourdieu and David Graeber, you really might as well be reading n+1.

Poor RBC.

Here Steven Davidoff points out that while, yes, Royal Bank of Canada didn't cover itself in glory in advising Rural Metro on its sale of the company, it's a little unfair that RBC should be on the hook for $250 million in damages while Rural Metro's directors just paid a few million dollars, all covered by insurance. Directors who do naughty things with their companies tend to have more legal protections than the bankers who advise them. There is a reason that investment banks want strong indemnification provisions on these assignments: They're working for a paltry few million dollars, but handling companies worth billions. The risk of liability is out of all proportion to the reward.