The financial services industry touches all of our lives and has been going through a continuous transformation since the deregulation that began in the early 1970's. That evolution has accelerated in recent years as more and more pressure has been brought to bear by various stakeholders in the industry who have divergent goals and agendas. Those invested stakeholders include clients, investors, employees, regulators/politicians and the public at large. Overlaying all of this change has been rapid technological advancement that has had a direct impact on how the industry delivers its services, meets expected equity returns and manages the risk inherent in that delivery. This Course is an Advanced Finance Elective where THINKING not MEMORIZING is what it is all about.

This course is a survey course. It provides a broad overview of the financial services industry and of the forces that are continuing to change it worldwide. That change/evolution has resulted in a confederation of sometimes integrated products and services within a multi-product firm. It has also resulted in individual stand-alone businesses within those same integrated financial firms, or in boutique, stand-alone, limited product firms. The course focuses on four big questions: (1) Why and what kind of services are provided by participants in the industry? (2) Who develops, provides and regulates those services? (3) How are they likely to be executed or modified in the future? (4) What skills (both technical and "soft") are required for an individual to succeed in the industry? Our approach will be to examine each of the principal businesses in which various financial service firms have been involved, including: raising capital; financial advisory; broker/dealer positions; sales and trading; proprietary investing; managing the assets of others (both institutions and individuals) and risk management.

Throughout, there are a number of overarching themes. Among these are: the interplay of politics, regulation, globalization, and technology; the emergence of shadow banking including private equity and hedge funds as both critical clients and potential competitors for the major investment banks; the search for new, high-margin products and whether that process has reached its limits; and the changing relationships among the different groups within a financial service firm.

By the end of the semester each student should be well versed in the functioning of the industry, be able to understand the financial press and associated economic commentary, be aware of the types of skills necessary to thrive in this industry and have a new perspective on the global financial system.

Required readings – e.g., current articles will be distributed in class or linked on NYU Classes. . For those students who would like to refer to a textbook, David P Stowell's “An Introduction to Investment Banks, Hedge Funds and Private Equity” and K. Thomas Liaw’s “The Business of Investment Banking: A Comprehensive Overview” (2012 Edition) are good reference texts but not required. Students are expected to keep up with the financial news throughout the course. The Wall Street Journal, The Financial Times, The Economist and Bloomberg.com are recommended.

Many of my exam questions are taken from current situations, so keep up with what is happening in the world!

“Brightspace” is an integral part of this course, and you are responsible for any information posted there. In particular, be sure to look under the “Announcements”, “Assignments” and “Content” tabs in preparing for each class. The content of the course is listed in the "Modules" space under the "Content" tab in Brightspace.

Exams will be closed book, will be given during class periods and total Exam time will be limited accordingly. There will be a quiz on each Module given outside of class hours. You will be given 12 hours to complete each quiz which will be open book. The answers to the exams/quizzes will be posted for one week following the exam and students are invited to compare their answers to the answer key. If they feel that their exam was scored incorrectly, they may first submit the issue to the TF for review. If a satisfactory result is not obtained, they may then submit the issue to me for a full review. I reserve the right in such situations to review the entire exam/quiz for regrading. You have one week from receipt of a grade to do this. No exceptions.

I also reserve the right to add up to 10 points to the student’s total grade for noteworthy contribution to the class discussion. That said, my ability to change the course grade of a student as a result of these additional points will be limited by Stern's grade curving guidelines which caps the absolute number of "A"'s and "A-"'s in a class.

Attendance, preparation and class participation are an integral part of this course. In particular, students who have a large number of unexcused absences, who consistently arrive late or who disrupt the class will have their course grade reduced as a result.

At NYU Stern we seek to teach challenging courses that allow students to demonstrate differential mastery of the subject matter. Assigning grades that reward excellence and reflect differences in performance is important to ensuring the integrity of our curriculum.

Students whose class performance may be affected due to a disability should notify the professor early in the semester so arrangements can be made, in consultation with the Henry and Lucy Moses Center for Students with Disabilities, to accommodate their needs.

If you will require academic accommodation of any kind during this course, you must notify me at the beginning of the course (or as soon as your need arises) and provide a letter from the Moses Center for Student Accessibility (212-998-4980, mosescsa@nyu.edu) verifying your registration and outlining the accommodations they recommend. For more information, visit the CSA website:

Classes can get stressful. I encourage you to reach out if you need help. The NYU Wellness Exchange offers mental health support. You can reach them 24/7 at 212 443 9999, or via the “NYU Wellness Exchange” app. There are also drop in hours and appointments. Find out more at:

NYU Stern students now have the ability to include their pronouns and name pronunciation in Albert. I encourage you to share your name pronunciation and pronouns this way. Please utilize this link for additional information: Pronouns & Name Pronunciation

NYU’s Calendar Policy on Religious Holidays states that members of any religious group may, without penalty, absent themselves from classes when required in compliance with their religious obligations. You must notify me in advance of religious holidays or observances that might coincide with exams, assignments, or class times to schedule mutually acceptable alternatives. Students may also contact religiousaccommodations@nyu.edu for assistance.

NYU Stern is committed to ensuring an equitable educational experience for all students regardless of identity or circumstances and strives to recognize the obligations its students have outside of Stern. Please review all class dates at the start of the semester and review all course requirements to identify any foreseeable conflicts with exams, course assignments, projects, or other items required for participation and attendance. If you are aware of a potential conflict, please contact me as soon as possible to discuss any potential conflicts to determine whether/how they can be accommodated.

Except for religious observances or other absences that may be required in compliance with nondiscrimination law, this class otherwise requires attendance and participation and cannot accommodate conflicts. Please review all class dates at the start of the semester and review all course requirements to identify any foreseeable conflicts with exams, course assignments, projects, or other items required for participation and attendance. If you are aware of a potential conflict, it is strongly recommended that you do not take this class.

This course strives to support and cultivate diversity of thought, perspectives, and experiences. The intent is to present materials and activities that will challenge your current perspectives with a goal of understanding how others might see situations differently. By participating in this course, it is the expectation that everyone commits to making this an inclusive learning environment for all.

Jan. 25 & 27, Feb. 1 - Overview of the Financial Services Industry and the function of the Investment Banking Business.

March 31 & April 5 & 7 - Syndicated Lending, Leveraged Lending and Leveraged Finance

All of the suggested readings can be found on Amazon.com for purchase or in the NYU or Public Libraries.

Professor Finch’s Best Reads

Title Author Subject

Wall Street Charles Geisst Wall Street history

The Great Game John Steele Gordon Wall Street history

Where Are the Customer’s Yachts? Fred Schwed Wall Street history

Barbarians at the Gate Bryan Burrough, John Helyar LBO of RJR/Nabisco

The Predators Ball Connie Bruck Mike Milken and junk bonds

Liar’s Poker Michael Lewis Salomon in the ‘80s

When Genius Failed Roger Lowenstein Long Term Capital

Paper Fortunes Roy C. Smith Modern Wall Street history

Blue Blood and Mutiny Patricia Beard Morgan Stanley history

The House of Morgan Ron Chernow J P Morgan: The Firm

House of Cards William D. Cohan Bear Stearns collapse

The Last Tycoons William D. Cohan Lazard Freres history

The Partnership Charles D. Ellis Goldman Sachs history

The House of Rothschild Niall Ferguson Rothschild over 200 years

Accidental Investment Banker Jonathan A. Knee Life inside an investment bank

Tearing Down the Walls Monica Langley Sandy Weill and Citigroup

Take on the Street Arthur Levitt Regulator’s views

F.I.A.S.C.O Frank Partnoy Derivatives Business

Infectious Greed Frank Partnoy Just what the title suggests.

Confessions of a Wall Street Analyst Dan Reingold Equity research scandal – 1999

Den of Thieves James Stewart Insider trading scandal of 1980’s

Morgan Jean Strouse J P Morgan: The Man

Fool’s Gold Gillian Tett Credit derivatives

In Fed WE Trust David Wessel The Federal Reserve

Too Big To Fail Andrew Sorkin The Financial Crisis - 2008

The Greatest Trade Ever Gregory Zuckerman John Paulson’s Hedge Fund

The Big Short Michael Lewis Mortgage Collapse/ Hedge Fund Managers

Crash of the Titans Greg Farrell Collapse of Merrill & Fall of B of A

Money and Power William Cohan Goldman Sachs ruling the world

More Money Than God Sebastian Mallaby History of Hedge Funds

King of Capital David Carey, John Morris Steve Schwarzman & Blackstone

Reckless Endangerment Morgenson & Rosner Downfall of Fannie Mae/Fredddie Mac

The New Tycoons Jason Kelly The Private Equity Industry

Dark Pools Scott Patterson Dark pools trading and strategy

The Quants Scott Patterson The rise of Quantitative methods

Young Money Kevin Roose Eight Analyst two years

Flash Boys Michael Lewis Flash Trading

What Happened to Goldman Sacks Steven Mandes The decline of the partnership culture

Open Secret Erin Arvedlund The LIBOR Scandal