Monthly Archives: June 2010

Financial 411: The Volcker Rule: What It Would Mean For Banks

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

Posted in Regulatory Risk | Tagged | 4 Comments

Recording of the Webinar “Operational Risk: How to Obtain Tangible Benefits from the Measurement Framework” Available

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

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Webinar: “Liquidity Risk and Correlation Risk: A Clinical Study of the General Motors and Ford Downgrade of May 2005″

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

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If Morgan Stanley Caused The Oil Spill

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

Posted in Systemic Risk | Tagged | 1 Comment

Webinar: “Operational Risk: How to Take Tangible Benefits From the Measurement Framework”

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

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A Tax on Systemic Risk

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

Posted in Credit Risk, Market Risk, Systemic Risk | Tagged , , , | 3 Comments

INSIGHT-Banks Push to Boost Dividends; Regulators Push Back

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

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NYU Stern Dinallo Says Issuer-Paid Debt Ratings Don’t Work

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

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Subcommittee on Oversight and Investigations Hearing – NYU Stern Professor Testifies On Reversing Our Addiction to Debt and Leverage

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

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NYU Stern’s Altman Sees High Yield Bond Correction (JNK, HYG), Plus Greek Contagion Risk (Spain and Portugal) Feeding Into Euro

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

Posted in Credit Risk, Foreign Exchange Risk, Sovereign Risk | Tagged | 1 Comment