White, Eugene; Riva, Angelo - National Bureau of Economic Research (NBER) - 2010
Over the course of the nineteenth century, the struggles of Paris Bourse to manage counterparty risk revealed the … the fund then forced the Bourse to search for mechanisms to control moral hazard. To study the determinants of broker … contributed to brokers' defaulting on their obligations. The Bourse faced a conundrum; when it finally imposed a tight regulatory …