Monthly Archives: July 2011

Professor Steve Brown says tail risk increases with excess diversification. Ever since the financial crisis, the fund of hedge funds model has been under fire. Such firms, which sells baskets of hedge funds to investors, charge too much, investors have … Continue reading →

Professor Matt Richardson gives Dodd-Frank a ‘B’. One year after signing the Dodd-Frank financial regulation reform legislation, regulators and market watchers say there are still a lot of hurdles to overcome to avoid another financial meltdown. Watch video here

Professor Matt Richardson discusses the book ‘Guaranteed  to Fail’ on The Daily Show with Jon Stewart. Watch video here.

22 July marks the first anniversary of Dodd-Frank, the most comprehensive US regulatory effort for financial markets since the 1930s. In June, the Pew Charitable Trusts and NYU’s Stern School collected an array of prominent experts to provide an interim … Continue reading →

Professor Viral Acharya says the way US state-sponsored firms morphed into disaster should be a cautionary tale for Indian policymakers It’s been over two-and-a-half years since Fannie Mae and Freddie Mac, the government sponsored enterprises (GSEs) in the US supporting … Continue reading →

Edward Altman, a finance professor at New York University’s Stern School of Business, talks about his Z-metrics formula for assessing the financial health of countries and the outlook for resolution of the European debt crisis. Altman, who created the Z-score … Continue reading →

Professor Viral Acharya says we must first diagnose the problem before deciding on the stimulus. COUNTERCYCLICAL fiscal policy or stimulus, like medicine, works only if it is customised to the economic disease on hand. If not, it may be wasteful. … Continue reading →

FT refers to ‘Guaranteed to Fail’ by NYU Stern faculty as “a thought-provoking book” But the dirty secret behind this rhetoric was that government-backed institutions such as Fannie and Freddie were playing an important role in the modern financial system, … Continue reading →