Relieving bank managers from traditional liability for negligence is contrary to the legislative and executive intent in passing FIRREA and economically suboptimal. Misinterpreting FIRREA to permit negligent management of banks will create perverse incentives for excessive bank risks and lead to...

Recently, many respected business leaders have voiced concern that corporate governance in American public companies has moved toward CEO primacy or a dictatorship of the CEO, and away from traditional notions of shareholder primacy. This article shows that this concern is well-founded. The...