Of rats and men: would member compensation imperil CCPs?

CCPs and members split over whether compensation after default losses is moral hazard or fair

In an attempt to check Hanoi’s flourishing rat population, French colonial authorities in Vietnam once offered locals a bounty for each rat tail they presented to municipal authorities. It didn’t go as planned, though. Rather than killing the rodents, entrepreneurial locals built farms for them, cutting their tails off, but keeping their stock alive to breed more bounties, which led to many, many more rats.

This bit of Grand Guignol is recalled today as the Great Hanoi Rat Massacre of 1902

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