We examine whether bankers face disciplining consequences for structuring poorly performing corporate loans. We construct a novel dataset containing the employment histories and loan portfolios of a large sample of corporate bankers and find that corporate credit events (i.e., downgrades,...

"We argue that a firm's aggregate risk is a key determinant of whether it manages its future liquidity needs through cash reserves or bank lines of credit. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result, firms with high aggregate risk find it costly to get...