most recent financial crisis. We find that while prior to August 2007 returns were indeed close to zero, afterwards returns … borrowers by banks started to play a lesser role, while during the crisis the banks' role was revitalized. Consistent with this …

We investigate whether bank performance during the recent credit crisis is related to chief executive officer (CEO …) incentives before the crisis. We find some evidence that banks with CEOs whose incentives were better aligned with the interests … larger fraction of compensation in cash bonuses for their CEOs did not perform worse during the crisis. Bank CEOs did not …