Monthly Archives: June 2010

Congress is debating new laws including the Volcker Rule that could limit big banks’ proprietary trading. NYU Stern’s Viral Acharya says it will impact Large Complex Financial Institutions (“LCFIs”) who most likely will have to go through some transformation. The … Continue reading →

Professor Michael Pinedo and Professor Marcelo Cruz discuss developing an operational risk framework with a very strategic focus similar to those of market and credit risks. During the webinar, they stress estimating a capital number to make regulators happy is … Continue reading →

NYU Stern Professor Viral Acharya, London Business School Professor Steven Shaefer and Yili Zhang will talk about liquidity risk and contagion by examining the case study of the General Motors and Ford downgrades in 2005, which caused a widespread sell-off … Continue reading →

Professor Ingo Walter draws parallels between the oil spill and financial crisis.   Oil gushing into the Gulf of Mexico reminds us of the vulnerability confronting even the most sophisticated of production systems to extreme events. It’s unlikely that any upstream … Continue reading →

Professor Michael Pinedo and Professor Marcelo Cruz will talk about advanced measurement techniques that the firms can use to integrate their operational risk frameworks more into the day-to-day of the businesses and also to operate closer to how market and … Continue reading →

Professors of Finance Viral Acharya, Lasse Pedersen, Thomas Philippon and Matthew Richardson propose a systemic risk tax on financial firms that is based on a firm’s expected loss should an economic crisis happen.  Specifically, they suggest that each firm be … Continue reading →

Professors Viral Acharya argues that for a bank whose losses can be anticipated, the dividends were paid to equity holders at the expense of debt holders in violation of the priority of debt over equity. U.S. banks push to boost … Continue reading →

NYU Stern Adjunct Professor Eric Dinallo talks with Bloomberg on Friday, May 21, 2010 about his contention that the system of having debt issuers pay for credit ratings needs to be changed. Dinallo also discusses the need for better oversight … Continue reading →

Professor Viral Acharya testified on Friday, May 7 in front of the House of Representatives Subcommittee on Oversight and Investigations Hearing about “The End of Excess (Part One):  Reversing Our Addiction to Debt and Leverage”. He discussed the most recent … Continue reading →

Professor Edward Altman thinks a correction is near for high yield bonds. He also thinks it’s “even money” that Greece will default in 1.5 or 2 years and sees Greek contagion risk spilling into Spain, Portugal and other EU countries … Continue reading →