U.S. banks are increasingly outsourcing an expanding range of their operations to third-party service providers. Recent industry estimates show that outsourcing by U.S. banks accounts for almost 20 percent of their information technology services spending Importantly, the prospect of...

This paper discusses the role of risk management and corporate governance as causal factors in the onset of the financial crisis. The downturn in the housing and mortgage markets precipitated the first phase of the financial crisis in August 2007 when the solvency of a number of large financial...