King Henry II and the Global Financial Crisis
James W. Giddens: A significant portion of the failure that fueled the 2008 financial crisis has been attributed to a systemic lapse in senior executive oversight at the major financial institutions. Notwithstanding this failure, these executives have not been held personal liable for their “King Henry moments,” instances where senior executives have allegedly been aware of, or turned a blind eye to, questionable acts that occurred on their watch—often for the executives’ own personal benefit. This Article outlines the current state of the law governing senior executive liability, summarizes recent headline events in the financial industry, and provides a series of recommendations for proportionate reforms to correct current incentive imbalances in the financial industry.