The Big Short by Michael Lewis

[AlphaQuant]

Root of problem is simple: the INCENTIVE that exacerbates greed. Structurally it is the problem of leverage and regulation to curb incentives.

i agree.
banks have definitely shored up their liquidity ratios and de-leveraged the books, but the idea of compensation tied to "performance" is still not changed, which is why some years down the road, a bunch of people are still going to be betting big time using banks' money to profit handsomely from it - the incentive scheme ensures that the optionality nature of the payoff - limited downside and unlimited upside.

unless this culture changes, there will be another crisis down the road.