Infectious Greed
Definition of 'Infectious Greed'A phrase used in his July 2002 testimony before the Committee on Banking, Housing and Urban Affairs by former Federal Reserve Board chairman Alan Greenspan to describe the breakdown of corporate governance checks and balances. Mr. Greenspan spoke of this while focusing on reforms of corporate governance to help protect investors. |
|
Investopedia explains 'Infectious Greed'Infectious greed, as Mr. Greenspan put it in this testimony, "[gripped] most of [the] business community. Our historical guardians of financial information were overwhelmed. Too many corporate executives sought ways to 'harvest' some of those stock market gains. As a result, the highly desirable spread of shareholding and options among business managers perversely created incentives to artificially inflate reported earnings in order to keep stock prices high and rising." |
Related Definitions
Articles Of Interest
-
Translating "Fed Speak" Into Plain English
Confused by the Fed's lingo? Find out what it can tell you and learn how to decipher it. -
How The U.S. Government Formulates Monetary Policy
Learn about the tools the Fed uses to influence interest rates and general economic conditions. -
The Importance Of Inflation And GDP
Learn the underlying theories behind these concepts and what they can mean for your portfolio. -
Alan Greenspan: 19 Years In The Federal Reserve
Follow the economic glories and bumbles in the career of the previous Fed chair. -
Financial Regulators: Who They Are And What They Do
Find out how these government agencies govern the financial markets. -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity. -
The Path To Becoming A CEO
Think you have what it takes to be chief executive? Find out what those at the top have in common. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks.
Free Annual Reports