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Are You Saying I Should Fire All My Executives?
The executives who had approved the original loans were motivated to keep justifying their decisions. When new executives took over, they quickly recognized that someone who's missed 17 payments probably isn't going to come throughnumbe 18. If you move the loan decision from the original people who made the loan, just like going to an objective third party, it's more likely that you will start to recognize the losses.