Monthly Archives: September 2011

Making Europe Safer

A cleverly designed bond instrument can ensure the euro zone’s survival without a fiscal union. From the Wall Street Journal: The following is an open letter by the international Euro-nomics academics group (www.euro-nomics.com), composed of Markus Brunnermeier, Luis Garicano, Philip … Continue reading

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In times like these predictive power lies in looking back

The article highlights Professor Edward Altman’s Z-score for predicting corporate bankruptcies. If developed economies are heading for a nuclear winter – and at times it feels that way – the concept of defensiveness takes on a new urgency. But what … Continue reading

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The Vickers report: ringfencing is a good idea, but no panacea – risk weights are crucial

Professor Viral Acharya talks to Viv Davies about the recent report issued by the UK’s Independent Commission on Banking. They discuss capital requirements and the proposal to ringfence bank’s retail versus investment activities. They also discuss the likely costs of … Continue reading

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‘Guaranteed to Fail’ is named a ‘Top Business Book’ By Bloomberg

“Guaranteed to Fail” by Viral V. Acharya, Matthew Richardson, Stijn Van Nieuwerburgh and Lawrence J. White (Princeton). Four professors at New York University’s Stern School of Business explain how Fannie Mae and Freddie Mac got so big and why we … Continue reading

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MS in Risk Management Class of 2012 Sound the Gong at the NYSE Euronext

Class of 2012 of Master of Science in Risk Management Program for Executives (MSRM) opened the NYSE Euronext Exchange today by sounding the gong. Watch the video of the ceremony.

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It isn’t over till the fat lady sings

Professor Altman says the ECB must focus on fixing the Italian economy. The Greek mathematician Archimedes sure had the makings of a hedge fund manager, just that he was a little ahead of his time. For it was he who … Continue reading

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EZ crisis: the answer is commitment

Professor Thomas Cooley talks to Viv Davies about the debt crisis and why the Eurozone needs a credible institutional commitment and a strong fiscal authority. They discuss the role of the ECB, the banking system, ‘forced borrowing’ and the prospect … Continue reading

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Housing Market May Be Better Off Left Alone–Economists

Professor Stijn Van Nieuwerburgh says the government’s efforts to boost housing are prolonging the inevitable by keeping home prices artificially high, while it is lower prices that are really necessary to revitalize the housing market. President Obama’s proposal to expand … Continue reading

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Greece Should Default and Abandon the Euro

Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an … Continue reading

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Upcoming Event: Banking Stability and Reform with Sir John Vickers

On Monday, September 12, the Independent Commission on Banking, led by Sir John Vickers, released its final report on UK banking. Two of its key findings are that core banking operations must be ringfenced from the rest of bank’s other … Continue reading

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