ABSTRACT
This conclusion presents some closing thoughts on the key concepts discussed in the preceding chapters of this book. The book explores the financial stability ramifications of financial institution corporate governance structures, especially of the profit maximisation norm. It began by asking whether a special corporate law regime is necessary for systemically important financial institutions. In parallel, private actors such as shareholders, bondholders and depositors cannot be relied on to monitor risk-taking by financial institutions to the requisite extent, due to the combined effect of the misalignment between their own interests and the public interest, and the opacity of financial assets that precludes them from accurately assessing the level of risk taken by individual institutions. The intended contribution of the book to the broader area is the identification of the inherent misalignment between the conventional UK corporate law framework and financial stability.
