Check out our new blog Stern on Finance for the latest on the Financial Crisis. |
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09.09.2009
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Forbes.com: Animal Planet vs. Economic Reasoning
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In an op-ed, Dean Thomas Cooley addressed the critique against
economists, saying that although the economics profession took a huge
hit by failing to foresee and prevent the financial crisis, economists
can learn from this event. Professor Lasse Pedersen's recent paper
"When Everyone Runs for the Exits," was also referenced. In two more
op-eds for Forbes.com,
Dean Cooley wrote that the aftermath of the Lehman failure has
distracted from important lessons about liquidity and lamented that the
G-20 has not honored its promise to fight protectionism. He was also
interviewed by the Korean Broadcasting System.
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09.04.2009
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VoxEU.org "Systemic
Risk and Deposit Insurance Premiums"
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In an op-ed, Professor Viral Acharya outlined why and how the
government should charge financial institutions for the guarantees it
provides them. Professors Lasse Pedersen, Thomas Philippon and Matthew
Richardson were also referenced. The op-ed was featured on a Financial
Times blog. On Mandag Morgen, he warned
that the collapse of smaller banks could split the US economy.
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09.2009
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The New York Times
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In an
article about the increase in options investing, Professor *Stephen
Figlewski *discussed its perils, saying if the strategy fails, investors
lose any profits they made. He told / The New York Times/
that mathematical risk models for finance failed to consider liquidity
risk. Additional coverage appeared in The New York Times blog.
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09.2009
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Financial Executive: "Financial Crisis: Is it Over?"
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| In a co-authored
op-ed, Professors *Viral Acharya* and *Matthew Richardson* wrote that if
the economic scenario fails to substantially improve, it will spell
trouble for banks' future earnings and the expected future losses of loans.
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06.29.2009
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The Wall Street Journal: “Junk Yields Tempt, but Watch Out”
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| Professor Edward Altman surmised that it is unlikely yields will go higher than they were last spring. He discussed the rapid exchange of corporate bonds with Bloomberg and warned the Associated Press of the potential for GM to fail, even under bankruptcy protection. Additional coverage appeared in The Chicago Tribune, ABC News, BusinessWeek.com, LATimes.com and six outlets. He reiterated his concerns about the GM bankruptcy on NPR’s All Things Considered and WPIX 11. On Charlie Rose, Professor Altman discussed the roles of the US government as both negotiator and shareholder in the bankruptcies of GM and Chrysler. Additional coverage appeared in the Financial Times.
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06.27.2009
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TechCrunch.com: “The Top 100 Networked Venture Capitalists”
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| Professor Alexander Ljungqvist's co-authored paper, "Whom You Know Matters: Venture Capital Networks and Investment Performance,” which discusses the high returns for venture investors with the biggest and best networks, was featured. Additional coverage appeared on TopNews.us and VentureBeat.com.
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06.25.2009
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The Economist: “First Draft of History”
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| NYU Stern’s co-authored book, Restoring Financial Stability: How to Repair a Failed System, edited by Professors Viral Acharya and Matthew Richardson, was recognized as the “ideal book about the financial crisis.” The book was also featured in Harvard Business Review as an example of a school organizing intellectual analysis on what happened in the global economy over the last two years.
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06.25.2009
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BrightTalk.com: “Regulating Systemic Risk”
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| During an hour-long webcast, Professor Viral Acharya discussed NYU Stern's recently published book, Restoring Financial Stability: How to Repair a Failed System. In a segment following President Obama's announcement of a "super" regulator, Professor Acharya spoke with Al Jazeera about why the financial system and the banking industry are still struggling.
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06.24.2009
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Examiner.com: “Breaking Into Finance”
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| Nobel Laureate Professor Robert Engle's Financial Times online video course on global financial volatility was highlighted. In an interview with MarketsMediaOnline.com, he discussed the Volatility Institute at NYU Stern and its centerpiece, the Volatility Lab (Vlab).
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06.24.2009
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VoxEU.org: “Incentive Accounts: A Solution to Executive Compensation”
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| In an op-ed, Professor Xavier Gabaix and co-author proposed "incentive accounts" that are consistent with a firm's position and long-term interests as a solution to over-compensating executives.
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06.12.2009
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Money Magazine: “The Era of New Regulation”
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| In a discussion about the recently unveiled financial regulations, Professor Viral Acharya blamed the Reagan Administration’s anti-regulation mantra for investors’ beliefs that free markets were the most efficient.
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06.11.2009
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Reuters blog: “Leave Pay to Companies, Shareholders”
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| Professor Xavier Gabaix's joint study on how to better align executive compensation with long-term shareholder interests was featured. Additional coverage appeared on Forbes.com, Guardian.co.uk, The Globe and Mail and five outlets. His research on executive compensation was also featured in CPI Financial and Entertainment Close-Up.
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06.10.2009
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Bloomberg TV: “In-depth Look: Volatility Market”
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| Professor Robert Engle said that Eastern European economies are still weak and GDP growth will not bottom out until after September. On CNBC he discussed his support of the Fed's oversight of banks and rating agencies, and his outlook for the economy. In the Irish Times, he questioned the efficacy of Nama, Ireland’s solution to its economic crisis. Additional coverage appeared in Irish Independent and FinFacts.
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06.09.2009
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Forbes.com:“Finance and Growth Strategy”
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| As a featured guest in the publication’s outlet’s “Small Business Exchange,” Professor Glenn Okun fielded questions about financing startups in today’s economy, saying entrepreneurs need to find ways to create value without relying on cash.
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06.05.2009
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RFP News: “RMG Designs New Model with Default Risk Indicator”
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| Professor Edward Altman's partnership with RiskMetrics Group, a provider of risk management services, to create a new credit risk scoring system was discussed.
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06.05.2009
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The Wall Street Journal blog: “Citigroup: Battling the FDIC, but Losing the Regulatory War?”
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| Professor Philipp Schnabl reiterated his belief that there should be one agency regulating all financial firms, citing Citigroup’s battle with the FDIC. He told the Associated Press that the Obama Administration is focusing on the consumer and on PBS' Nightly Business Report, he characterized the GM bankruptcy as a defining moment for the president. Additional coverage appeared in the The Washington Post, MSN Money, The Huffington Post, ABC News, Yahoo! News, The Seattle Times and 33 outlets.
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06.04.2009
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ABC.es: “Dos Economistas Indios y un Americano”
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| Professor Viral Acharya's co-authored study, arguing that internal corporate governance mechanisms are important for a company's value creation, was featured. Additional coverage appeared in five Expansión pieces, ABC, three Finanzas.com pieces, two Universia.es pieces, Elimparcial.es, Agencia EFE and Europa Press.
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06.03.2009
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BBC: “Tributes to Nobel Prize Economist”
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| The life and achievements of Sir Clive Granger, who won the Noble Prize in 2003 with Nobel Laureate Professor Robert Engle, were highlighted. Sir Granger died on May 27, 2009. Additional coverage appeared on BBC Radio, LATimes.com, Seattlepi.com, WalesOnline.co.uk, UPI.com and La Nueva Espana.
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06.01.2009
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Forbes.com: “Act Now on Systemic Risk”
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| In an op-ed, Professor Roy Smith warned that the US is not thoroughly tackling the systemic risk of easy and cheap credit. He explained the relationship between private equity and pension funds on NPR’s Planet Money.
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05.29.2009
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Associated Press: “All Business: Ex-Countrywide Execs to Aid Housing”
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| In a discussion about the role Countrywide played in causing the housing bubble, Professor Stijn Van Nieuwerburgh offered his insight on PennyMac buying distressed mortgages. Additional coverage appeared in The New York Times, USA Today, The Washington Post, Forbes.com, SFGate.com, Yahoo! Finance, Seattle Times, PBS.org and 24 outlets. On Reuters Insider, Professor Van Nieuwerburgh participated in a discussion on macroscope treasuries, arguing that it is difficult for new home buyers to get mortgages, which leads to further reductions in housing prices.
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05.29.2009
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Telegraph.co.uk: “Remembering Sir Clive Granger”
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| Professor Robert Engle’s Nobel Prize-winning, joint research on financial volatility models was highlighted in an obituary for his co-author Sir Clive Granger. Additional coverage appeared on LaJollaLight.com and UCSD News.
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05.28.2009
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Investors Chronicle: “The Power of Bad Luck”
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| Professor Xavier Gabaix’s research quantifying the extremely high chances of an abrupt end to a bear market rally was highlighted. His joint paper proposing a compensation system based on long-term escrow accounts was featured in ManyWorlds.com. Additional coverage appeared in Utah CEO. He was referenced as an academic economist in Chosun.com.
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05.27.2009
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Associated Press: “Dow Jones Industrial Average to Get New Component if General Motors Files For Bankruptcy”
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| Professor Kenneth Froewiss said a company's addition to the Dow would likely have little impact on its stock. He explained the effect of adding a volatile stock to an equity index on PBS’ Nightly Business Report. Additional coverage on his perspective about initial public offerings appeared on Forbes.com, Businessweek.com, The Washington Post, Yahoo! Finance, MSN Money and 27 outlets.
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05.26.2009
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The Wall Street Journal: “Lehman Units Argue Bankruptcy -- U.S. Trustees Seek Global Framework; U.K. Administrators Prefer Local Rules”
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| Professor Edward Altman stressed the need for a global consensus on bankruptcy issues. He told Forbes.com that investors should view sales of discounted debt as better than its alternative, bankruptcy, and Reuters that the US is now in the worst recession since the Great Depression. Professor Altman loaned context to a Bloomberg story about the sale of Harrah’s junk bonds, and on NPR’s Morning Edition, he dismissed any chance of court appeals slowing down the bankruptcy process for Chrysler. He offered his perspective on factory closings and the growing trend of bankruptcy filings by large companies to NPR’s All Things Considered, USA Today and Malaysia Star. Additional coverage appeared in Reuters and Seeking Alpha. He warned Bloomberg that GM’s reorganization plan could fail if it leaves court protection too soon, with additional coverage on Welt.de and HoweStreet.com. He likened Chrysler’s bankruptcy proceedings to a dress rehearsal for GM on Bloomberg Radio. The Wall Street Journal blog cited his research showing that nearly half of companies making exchange offers file for bankruptcy. On PBS’ Nightly Business Report, he lamented the taxpayer’s loss by bailing out GM when the company “might not be viable.” Additional coverage appeared in two Bloomberg pieces and The Milwaukee Journal Sentinel.
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05.26.2009
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The Wall Street Journal: “The 52-Week High”
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| Professor Jeffrey Wurgler’s research about 52-week highs in stock prices was referenced.
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05.25.2009
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Financial Times: "The Threat that Won’t Go Away"
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| In an op-ed, Nobel Laureate Professor Robert Engle said that the fundamental cause of volatility in markets is new information. Additional coverage appeared in a FT.com Economist’s Forum and ForexYard.com.
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05.25.2009
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Le Monde: "La science économique plus que jamais sollicitée"
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| Professor Thomas Philippon was one of two recipients of the “Best Young Economist” award, given every year by Le Cercle des economists in partnership with the newspaper Le Monde Economie. Yann Algan was also selected for the honor. The prize, which was first awarded in 2000, is given for academic excellence and contribution to public debate. Philippon was chosen for his use of economics to understand crises, fraud and excesses in the financial sector. The Prize was awarded on May 25 at a ceremony in Paris attended by prior award winners and the circle of economists.
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05.23.2009
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South China Morning Post: “Global Business Schools Ready for Change”
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| Professor Ingo Walter mentioned that management experts are conducting research on the financial crisis to develop better management policy reforms. Jornal de Negocios mentioned his participation in a conference on financial strategies for today's economic environment.
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05.22.2009
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Bloomberg: “Bear Stearns to Algebra I Means Lost Dollars in Trickle-Down ”
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| Professor Thomas Philippon warned that the financial crisis could wipe out $185 billion in wages and profits.
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05.22.2009
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Crain’s New York: “Using Best-in-Class Hires to Boost Business”
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| In an article about the high wages paid to test-prep firm GMAT’s staff, Professor Glenn Okun said it makes sense for GMAT to pay a premium for teachers because it creates an incentive to give better service to customers.
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05.21.2009
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Associated Press: “After Clampdown, Credit Cards May Hike Fees”
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| Professor Philipp Schnabl offered his perspective in an article about credit cards raising fees, warning that even though banks are subject to new rules, they still need to make money and may look for more creative ways to raise it. Additional coverage appeared in The New York Times, The Boston Globe, BBC World TV, CNN Spanish, The Virginian-Pilot & The Ledger-Star, The Pittsburgh Post-Gazette, Miami Herald, SeattleTimes.com and 18 outlets. He discussed the US government’s proposed restrictions on credit card companies on CNN Spanish. On MainStreet.com, he explained that borrowers who are rejected by large banks may turn to smaller community banks for money. On El Mundo, he forecasted that banks will stabilize but ultimately become less profitable.
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05.14.2009
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The Wall Street Journal: “It's Wait-and-See Over Pay Overhaul; Some Open, Others See Overstepping”
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| Professor Thomas Philippon's study comparing wages in the financial industry to those in other sectors was cited. The New Yorker referenced his research finding that most of the size increase in the financial sector between 1980 and 1999 came from the companies’ need for more capital, with additional coverage in The Sunday Times. His belief that the stress tests are imperfect was highlighted in Le Monde, which also featured Professor Nouriel Roubini’s economic predictions.
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05.04.2009
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BusinessWeek: “Student Funds Tackle a Bear Market”
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| In an article about MBA student portfolios, NYU Stern’s Michael Price Student Investment Fund, led by Professor Richard Levich, was highlighted for beating industry benchmarks.
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04.29.2009
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Canada.com: "Rift on Bay Street Over Next Step to Recovery"
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| Professor Viral Acharya commented on the idea of a tax for "too big to fail" financial institutions that would develop a reserve for future possible bailouts, with additional coverage on FinancialPost.com. He was interviewed by China Central TV about the US financial structure, trends in the US economy and the role of Wall Street in the country's future economic development.
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04.27.2009
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Les Echos: "Les Devises, un Défi Redoutable pour les Gestionnaires"
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| Professor Richard Levich's article on currency hedge funds was reviewed.
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04.27.2009
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Hedge Fund Law Report: "Pension Funds Exceed Hedge Fund Allocation Guidelines as Other Asset Classes Decline More Precipitously: Will Pension Funds Redeem or Revise their Allocation Guidelines?"
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| Professor Leon Metzger provided an explanation as to how hedge funds can be long and short at the same time.
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04.27.2009
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Les Echos: "Requiempour le Carry Trade"
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| Professor Lasse Pedersen's paper was mentioned in a piece about carry trades, the practices of investors borrowing low-yield and lending high-yield currencies.
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04.25.2009
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MSNBC.com: "How I Lost $100,000 (Without Even Trying!)"
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| Professor Aswath Damodaran offered insight into finding an asset's value. His book, Investment Fables, was featured as one of "Tom Gardner's Top 5 Financial Must-Reads" in the Motley Fool.
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04.20.2009
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Le Figaro: "Wall Street Espère Eviter une Régulation Trop Contraignante"
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| Professor Philipp Schnabl was featured as one of the 33 NYU Stern academics who authored the recently published book, Restoring Financial Stability: How to Repair a Failed System. Professor Schnabl also explained that Wall Street does not necessarily need additional regulation, but requires more effective regulation.
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04.18.2009
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The Money Times: "This Is When You Sell"
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| Professor David Yermack's joint research, showing that company performance lessens when CEOs acquire large or expensive estates, was highlighted. In The West Australian, he was featured for his research on "backdating" share options.
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04.16.2009
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BusinessWeek: "What Good Are Economists Anyway?"
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| Professor Xavier Gabaix added to a discussion about why we need help from economists – the very ones who did not predict the current downturn – to recover from this crisis, with additional coverage in Farming UK.
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04.15.2009
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NYC on Deadline: "Angry Americans Protest Wall Street – Good Therapy, Poor Politics, say Experts"
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| Professor Kenneth Froewiss explained how wealthy Wall Streeters are a target during tough economic times because it is unclear to the public as to how financial sector workers make their money.
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04.14.2009
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Financial Times: "Is America the New Russia?"
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| Professor Thomas Philippon's joint research, showing that wages in the financial sector increased in the early 1990s until 2006, due in part to deregulation, was highlighted, with additional coverage in another Financial Times piece, The New York Times, WNYC News blog, Business Spectator and the Irish Times. His co-authored paper, The Rise in Firm-level Volatility: Causes and Consequences, was listed on the FT.com Economist's Forum as a good read during an economic downturn.
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04.12.2009
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The Atlanta Journal-Constitution: "Books Give Economists Crash Course"
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| The book Restoring Financial Stability: How to Repair a Failed System, edited by Professors Viral Acharya and Matthew Richardson and co-authored by 33 NYU Stern academics, was featured as one of six books published in the past month on the economic crash of 2008.
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04.11.2009
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The New York Times: "Crisis Altering Wall St. As Stars Begin to Scatter"
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| Professor Matthew Richardson offered his perspective in an article about the long-term effects of the current crisis on Wall Street.
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04.10.2009
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SmartMoney.com: "Is Your Broker Ready for a Mega-Rally?"
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| Professor Yakov Amihud commented on the capacity of the global trading infrastructure, allaying any concerns about brokers being able to cope with a large "run up."
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04.08.2009
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CNBC's Squawk Box: "Slowing the Financial Crisis"
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| Nobel Laureate Professor Robert Engle pointed to the risk that the government is taking on as it addresses the financial crisis. On ScreenDaily.com, he was featured as a member of the Tribeca Film Institute Sloan Filmmaker Fund's selection committee, which awards a total of $170,000 to five film projects that integrate science into cinema. |
04.02.2009
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New Yorker Blog: "Rethinking the Japanese Experience"
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| An op-ed by Professors Matthew Richardson and Nouriel Roubini, urging officials to nationalize insolvent banks, was referenced.
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04.01.2009
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Financial Times: "Multiple Threats for Investment Banking Model"
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| Professor Roy Smith added his perspective to a discussion about the future of the investment banking power structure, with additional coverage in GulfNews.com. He commented on the Goldman Sachs stock sales and the general confusion surrounding today's economic crisis in two Bloomberg pieces and on JewishJournal.com.
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04.2009
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China Central TV
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| Professor Stephen Brown was interviewed for a series on the US financial crisis and the future of Wall Street.
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03.31.2009
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Business Intelligence in the Middle East: "Business School Classrooms are Abuzz with Tales of Bubbles, Busts and Bailouts"
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| Professors Stijn Van Nieuwerburgh and Viral Acharya talk about what they're teaching in b-school classrooms today, including the concepts of time value of money and how to discount future cash flows, as well as how capital markets models work and what happens when they don't work.
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03.30.2009
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The New York Times blog: "End of an Ugly Era at GM?"
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| Professor David Yermack's comments on the performance of GM since Wagoner became president and chief operating officer of the company were cited.
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03.27.2009
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US News & World Report blog: "How Bailouts Can Butcher Capitalism"
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| The White Papers Project at NYU Stern, which resulted in the book, Restoring Financial Stability: How to Repair a Failed System, was cited in a piece about banking bailouts. Professors Edward Altman and Thomas Philippon, who argued for a bankruptcy for GM in the book, were highlighted in another US News & World Report blog article, The New York Times blog and on LesEchos.fr. Professor Viral Acharya's contribution to the book on regulating systemic risk in the banking sector was noted on The Wall Street Journal blog. Additionally, one of Professor Matthew Richardson's chapters, proposing centralized clearing for credit derivatives, appeared in TIME, WNYC and Kansas City infoZine.
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03.25.2009
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The Economist Blog: "Who's Master of the Universe Now?"
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| Professor Thomas Philippon's research, suggesting that some financial sector workers will transition their careers to the government, was cited. In The Atlantic, he projected a reduced share of GDP coming from the finance sector.
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03.25.2009
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New York Daily News: "Give Credit to Timothy Geithner's New Toxic Asset Plan"
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| In a co-authored op-ed, Professors Matthew Richardson and Nouriel Roubini supported Secretary Timothy Geithner's new plan for toxic assets, with additional coverage in The New York Times blog and two Huffington Post pieces. In the Financial Times, the professors compared the US to Sweden, referencing the Swedish model of bank nationalization to address its financial crisis.
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03.24.2009
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Australian Broadcasting Corporation's "The World Today:": "Wall Street Surges, World Markets Positive, But Doubts Remain"
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| Professor Philipp Schnabl commented on President Obama's plan to manage the economic crisis, with additional coverage on CCTV and in O Globo. Professor Schnabl also shared his perspective on AIG, the effects of a pullback on credit card lines and President Obama's bailout plan on CNN's "The Situation Room," Associated Press TV, WNYC and in Yomiuri Shimbun.
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03.23.2009
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SmartMoney.com: "Are Brokers and Funds Ready for a Mega-Rally?"
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| Professor Yakov Amihud discussed the capacity of the global trading infrastructure.
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03.17.2009
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The Wall Street Journal Blog: "Economists Suggest Fix to Bonus Problems"
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| Professor Xavier Gabaix's joint research, arguing for "dynamic incentive accounts," in which executive compensation would be put into escrow accounts that would be invested in company stock and cash, was highlighted. Additional coverage appeared on Fox Business Network, NPR and Forexpros.com. His co-authored study, showing that an increased demand for scarce talent led to CEO compensation inflation, was featured in Le Monde, BnDestem and on InTheseTimes.com.
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03.17.2009
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Forbes.com: "Cool Off the Bonus Rage at AIG"
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| In an op-ed, Professor Roy Smith urged readers to re-focus their energies on what's ahead and to recognize the Treasury and Federal Reserve's efforts to lead a financial restructuring. He offered his perspective on executive compensation, default rates, the state of the banking industry, the Madoff scandal, bank nationalization and US regulatory reform in the Associated Press,
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