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Do labor markets discipline? Evidence from RMBS bankers

Publication ,  Journal Article
Griffin, JM; Kruger, S; Maturana, G
Published in: Journal of Financial Economics
September 1, 2019

This paper examines whether employees involved in residential mortgage-backed security (RMBS) securitization experienced internal and external labor market consequences relative to similar non-RMBS employees in the same banks and why. Senior RMBS bankers experienced similar levels of job retention, promotion, and external job opportunities. Even signers of RMBS deals with high loss and misreporting rates or deals implicated in lawsuits experienced no adverse internal or external labor market outcomes. These findings are likely not explained by targeted or delayed employee discipline, small legal fines, or protection due to pending litigation but are consistent with implicit upper-management approval of RMBS activities.

Duke Scholars

Published In

Journal of Financial Economics

DOI

ISSN

0304-405X

Publication Date

September 1, 2019

Volume

133

Issue

3

Start / End Page

726 / 750

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1606 Political Science
  • 1502 Banking, Finance and Investment
  • 1402 Applied Economics
 

Citation

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Griffin, J. M., Kruger, S., & Maturana, G. (2019). Do labor markets discipline? Evidence from RMBS bankers. Journal of Financial Economics, 133(3), 726–750. https://doi.org/10.1016/j.jfineco.2018.11.005
Griffin, J. M., S. Kruger, and G. Maturana. “Do labor markets discipline? Evidence from RMBS bankers.” Journal of Financial Economics 133, no. 3 (September 1, 2019): 726–50. https://doi.org/10.1016/j.jfineco.2018.11.005.
Griffin JM, Kruger S, Maturana G. Do labor markets discipline? Evidence from RMBS bankers. Journal of Financial Economics. 2019 Sep 1;133(3):726–50.
Griffin, J. M., et al. “Do labor markets discipline? Evidence from RMBS bankers.” Journal of Financial Economics, vol. 133, no. 3, Sept. 2019, pp. 726–50. Scopus, doi:10.1016/j.jfineco.2018.11.005.
Griffin JM, Kruger S, Maturana G. Do labor markets discipline? Evidence from RMBS bankers. Journal of Financial Economics. 2019 Sep 1;133(3):726–750.
Journal cover image

Published In

Journal of Financial Economics

DOI

ISSN

0304-405X

Publication Date

September 1, 2019

Volume

133

Issue

3

Start / End Page

726 / 750

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1606 Political Science
  • 1502 Banking, Finance and Investment
  • 1402 Applied Economics