Regaining emergency cash control, unused borrowing capacity, using float, credit meltdown, cash survival, mining cash in inventory, Superdisk: what went wrong, regaining credit, deflating work in process balloon, forecasting during turnaround, implementing turnaround and marketing budget,...

The paper argues that the incidence of moral hazard played a significant role in the 2007/2008 credit crunch. In particular, bank traders subjected to asymmetric compensation structures have an incentive to take excessive risks even when the bank's shareholders would prefer prudent investment....