[ethbro]

I'd characterize it as their fitness function is "amount of profit generated" and they attempt to maximize that. Or are you saying financial firms would voluntarily leave profit on the table in order to help mitigate systemic risk?

[fatbird]

In Alan Greenspan's testimony to Congress on the 2008 crash he said he believed Wall St. was smart enough to do exactly that: collectively manage systemic risk by factoring it in, which would necessarily reduce profits by forsaking some short terms gains.

He was wrong.