Baily, Martin N.; Campbell, John Y.; Cochrane, John H.; … - 2023
To address the moral hazard problem that can motivate bank executives to take excessive risks and to fail to raise … regulatory capital requirements and well before its contingent convertible securities convert into equity. The Swiss Bank UBS has … compensation if the bank's regulatory capital ratio falls below 7.5%, and its contingent convertible debt is set up to convert into …