QuoteOriginally posted by: KackToodlesYou are gullible if you think that senior management of IBs or public companies ever publish anything except for marketing or promotion purposes!And I have the strong feeling that GS published what it did because it already has a very strong risk organization, and if it succeeds to making its structure "industry standard" than banks that don't have similar structures will be playing catch up.QuoteFor their point of view, how should things work? Maximize profits.No. The incentive structures are set up to maximize profits at the expense of everything else, but those structures are badly created. QuoteThey have no choice because either they maximize profits or their shareholders and board will have them fired.This isn't true. Shareholders have virtually no control over large public companies in the United States, and boards are still largely subservient to senior management. If you don't want to maximize profits, you don't have to as long as you make a profit and keep from bankruptcy.It's perfectly possible for the CEO of an investment bank to say "all you front office traders are wildly overpaid, I'm going to cut your salary and bonuses and increase the salary and bonuses of people in risk. If you don't like it, leave." It's possible because it's been done before, and firms that *did* do that are in better shape than firms that didn't.