regulatory Managers may staffmembers. succeed in demonizing the whistleblower Auditor-Initiated Auditor finds Managers concoct a Regulators may ignore Path irregularities and either persuasive cover story the audit impasse quits, is fired, or issues a for the impasse. qualified report Creditor-Driven News about auditor Managers may Central bank may Path issues, leaks, or collateralize and/or pay replace private funding autonomous rumors very high interest on with discount-window undermine depositor large deposits or loans confidence or the interbank loans confidence of suppliers of interbank loans EXHIBIT 5 AIG Stock Never Became Valueless EXHIBIT 6 REFERENCES Axelrod, Robert, 1997. The Complexity of Cooperation: Agent-Based Models of Competition Princeton: Princeton University Press. and Collaboration.
regulatory staffmembers. Managers may succeed in demonizing the whistleblower Auditor-Initiated Path Auditor finds irregularities and either quits, is fired, or issues a qualified report Managers concoct a persuasive cover story for the impasse. Regulators may ignore the audit impasse Creditor-Driven Path News about auditor issues, leaks, or autonomous rumors undermine depositor confidence or the confidence of suppliers of interbank loans Managers may collateralize and/or pay very high interest on large deposits or interbank loans Central bank may replace private funding with discount-window loans EXHIBIT 5 AIG Stock Never Became Valueless EXHIBIT 6 REFERENCES Axelrod, Robert, 1997. The Complexity of Cooperation: Agent-Based Models of Competition and Collaboration. Princeton: Princeton University Press.