NewsPronto

 
Men's Weekly

.

USA Conversation

The Conversation USA

The Conversation USA

What does 'moral hazard' mean? A scholar of financial regulation explains why it's risky for the government to rescue banks

  • Written by Cassandra Jones Havard, Professor of Law, University of South Carolina
imageA real payload.tiero/iStock via Getty Images Plus

“Moral hazard” refers to the risks that someone or something becomes more inclined to take because they have reason to believe that an insurer will cover the costs of any damages.

The concept describes financial recklessness. It has its roots in the advent of private insurance companies a...

Read more: What does 'moral hazard' mean? A scholar of financial regulation explains why it's risky for the...

More Articles ...

  1. Ramadan finds greater recognition in America's public schools
  2. Ramadan finds greater recognition in America's public schools
  3. A friend who's more boss than BFF may be harmful for teens' mental health
  4. A friend who's more boss than BFF may be harmful for teens' mental health
  5. Poisons are a potent tool for murder in fiction – a toxicologist explains how some dangerous chemicals kill
  6. Poisons are a potent tool for murder in fiction – a toxicologist explains how some dangerous chemicals kill
  7. Increases in opioid overdoses in Pennsylvania varied by county during the COVID-19 pandemic
  8. Increases in opioid overdoses in Pennsylvania varied by county during the COVID-19 pandemic
  9. Seabirds that swallow ocean plastic waste have scarring in their stomachs – scientists have named this disease 'plasticosis'
  10. A string of assassinations in Afghanistan point to ISIS-K resurgence – and US officials warn of possible attacks on American interests in next 6 months
  11. Trump's unprecedented call for protests is the latest sign of his aim to degrade America's institutions
  12. Is Wikipedia a good source? 2 college librarians explain when to use the online encyclopedia – and when to avoid it
  13. Worst bank turmoil since 2008 means Federal Reserve is damned if it does and damned if it doesn't in decision over interest rates
  14. Secession is here: States, cities and the wealthy are already withdrawing from America
  15. Voice deepfakes are calling – here's what they are and how to avoid getting scammed
  16. The state takeover of Houston public schools is about more than school improvement
  17. Estonia's e-governance revolution is hailed as a voting success – so why are some US states pulling in the opposite direction?
  18. 3 reasons the Willow Arctic oil drilling project was approved – it's the latest battle in a long fight over Alaska's North Slope
  19. Prosecuting Putin for abducting Ukrainian children will require a high bar of evidence – and won't guarantee the children can come back home
  20. Is the Western drought finally ending? That depends on where you look
  21. Why it's hard for the US to cut or even control Medicare spending
  22. Water in space – a 'Goldilocks' star reveals previously hidden step in how water gets to planets like Earth
  23. US regulators avoided a banking crisis by swift action following SVB's collapse – but the cracks it exposed continue to weaken the global financial system's foundation
  24. Downing of US drone in Russian jet encounter prompts counterclaims of violations in the sky – an international law expert explores the arguments
  25. AI information retrieval: A search engine researcher explains the promise and peril of letting ChatGPT and its cousins search the web for you
  26. 'Pantry porn' on TikTok and Instagram makes obsessively organized kitchens a new status symbol
  27. Climate change threatens spring wildflowers by speeding up the time when trees leaf out above them
  28. How to use free satellite data to monitor natural disasters and environmental changes
  29. El consumo de alcohol está ampliamente aceptado en Estados Unidos pero incluso el consumo moderado está asociado a numerosos efectos nocivos
  30. What the research shows about risks of myocarditis from COVID vaccines versus risks of heart damage from COVID – two pediatric cardiologists explain how to parse the data
  31. Syrian earthquake devastated an area that was already a disaster zone – and highlights the vital role of local aid groups
  32. I went to CPAC to take MAGA supporters' pulse – China and transgender people are among the top 'demons' they say are ruining the country
  33. What exactly is the internet? A computer scientist explains what it is and how it came to be
  34. Marburg virus outbreaks are increasing in frequency and geographic spread – three virologists explain
  35. Smell is the crucial sense that holds ant society together, helping the insects recognize, communicate and cooperate with one another
  36. Vinyl record sales keep spinning and spinning – with no end in sight
  37. JetBlue merger with Spirit not cleared for takeoff – why Justice Department is suing to scupper deal
  38. Silicon Valley Bank biggest US lender to fail since 2008 financial crisis – a finance expert explains the impact
  39. Who are Jehovah's Witnesses? A religion scholar explains the history of the often misunderstood group
  40. Why employment remains red hot even as the Federal Reserve tries to put job market on ice
  41. 5 tips for women to negotiate a higher salary
  42. Biggest racial gap in prison is among violent offenders – focusing on intervention instead of incarceration could change the numbers
  43. Distant star TOI-700 has two potentially habitable planets orbiting it – making it an excellent candidate in the search for life
  44. Syria's earthquake survivors struggle in a disaster made far worse by civil war, bombed-out hospitals and currency collapse
  45. Robots are performing Hindu rituals -- some devotees fear they'll replace worshippers
  46. Once the Callery pear tree was landscapers' favorite – now states are banning this invasive species and urging homeowners to cut it down
  47. Should you pay for Meta's and Twitter’s verified identity subscriptions? A social media researcher explains how the choice you face affects everyone else
  48. Leading American medical journal continues to omit Black research, reinforcing a legacy of racism in medical knowledge
  49. How the 'Holman rule' allows the House to fast-track proposals to gut government programs without debate or much thought at all
  50. Regulating 'forever chemicals': 3 essential reads on PFAS