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As the man who oversees about $20 billion of fixed-income investments at American Century Investments, we revisited with Keegan as part of today’s The Game column on the recurring foibles of Wall Street. Deal Journal: You were right back in April. You called it all. Why does Wall Street keep messing up? Jim Keegan: It’s too profitable to stop. It’s too profitable at the individual level, so the individuals interests are not necessarily aligned with the company’s interest. Pay me now and you pay for it later. There is no clawback. Employees can walk away with hundreds and tens of millions of dollars. And someone else will hire them to do it again.

blik. Wall graphics for the commitment phobic. blik

The havoc on Wall Street following the collapse of the subprime-mortgage market boils down to a simple truth: for years, lots of very smart people took lots of very foolish risks, betting borrowed billions on dubious mortgage derivatives, and eventually the odds caught up with them. But behind that simple truth is a more surprising one: the financial whizzes made bad decisions in part because that’s what they were paid to do. Not literally, of course. The way that hedge-fund managers and investment-bank C.E.O.s get paid is supposed to make them perform better for the investors they serve. Hedge-fund managers, for instance, typically are paid “2 and 20”: they get two per cent of total assets as a management fee, and they keep twenty per cent of their investment gains (above some agreed-upon benchmark). Letting hedge-fund managers keep a chunk of their winnings gives them an incentive to do well for their clients: in theory, they get rich only if their clients do.

Morning Edition, July 15, 2004 · A British street artist known as Moose creates graffiti by cleaning dirt from sidewalks and tunnels -- sometimes for money when the images are used as advertising. But some authorities call it vandalism.

It was one of the more fascinating, odd and troubling scientific ventures of the last century. An outline reads like some pulp sci-fi tale: During the 1930s, a hero pilot teams up with a brilliant surgeon in a spooky, black-walled lab to unlock the secret of eternal life to save the West. It sounds a bit nutty, but this isn't fiction.