Asymmetric Information
It is said of Gary Cohn, former chair of Goldman Sachs and former advisor to the Trump presidency, that while "[p]inning blame for the world's financial crisis of 2008 on one man or one bank would not be fair,... Gary Cohn and his entourage at Goldman Sachs is a good place to start." At Goldman Sachs, Cohn aggressively pushed subprime mortgages and other dubious financial instruments, costing his bank billions while he walked away with hundreds of millions of dollars in bonus money and stock options. In effect, he perpetrated one of the largest financial frauds in the history of the world and walked away rich and famous.
Of course, Cohn was only one of many crooks to walk away rich from the financial crisis of 2008.
1. Why do people invest in companies where they depend on company management for information on the company's value?