For better or worse, banks that are “too big to fail” – with government equity investment – will soon dominate global finance. Whatever institutions emerge from the current crisis, it is clear that traditional corporate governance of financial institutions is dead.

The banks’ managements ruinously failed to assess the real risks their companies took in pursuit of profit. But the boards of directors – the fiduciaries responsible for prudently representing shareholder interests – also failed in their duties. The global financial meltdown reflects in no small part the failure of meaningful boardroom scrutiny. Honesty and any serious hope for the future of corporate governance compel that this be acknowledged.