One of the lessons of the credit crunch is that long-term outcomes can be distorted by short-term rewards. This lesson extends beyond sub-prime loans to pension buyouts, whereby an insurance company is paid to take on someone else’s pension commitments.
[This article has been reproduced with permission from Said Business School, University of Oxford. The article originally appeared in the School e-magazine, THEWORLD@OxfordSaid. http://www.sbs.ox.ac.uk]