Experience Faculty & Research

The Rule 17g-5 program is a good start, but the SEC was too timid. At the very least, the 10% rating requirement for additional raters should be eliminated; it only serves to inhibit potential raters from even looking at the existing “bundles” of information. Read More

• Biography: Professor Larry White
• Department: Economics

In decades past, First World countries have lectured the rest of the world about how to stabilize and grow their economies. Today, in a startling turnaround, the developed world buckles under high debt and slow growth, while countries such as South Korea, India, Chile, Mexico, and even tiny Barbados provide vital lessons for recovery. Read More

• Biography: Dean Peter Blair Henry
• Department: Economics

Let’s imagine for a minute that six identical 23-year-old female sextuplets were born and raised in a secluded U.S. town. The town is too small to provide six eligible male bachelors, so the women post their pictures on a nationwide online dating site. Their pictures are almost identical, but the women distinguish themselves by wearing six different-colored plain T-shirts. Based on their profile pictures alone, you might expect them to attract similar levels of interest—but you’d be profoundly wrong. Read More

• Biography: Professor Adam Alter
• Department: Marketing

Last summer, after two years of growing uncertainty, systemic risk in the eurozone finally began to wane, as conditional commitments came together. Italy and Spain offered credible fiscal and growth-oriented reforms, and the European Central Bank, with Germany’s backing, promised intervention as needed to stabilize the banking sector and sovereign-debt markets. Read More

• Biography: Professor A. Michael Spence
• Department: Economics

Most observers regard unconventional monetary policies such as quantitative easing (QE) as necessary to jump-start growth in today’s anemic economies. But questions about the effectiveness and risks of QE have begun to multiply as well. In particular, ten potential costs associated with such policies merit attention. Read More

• Biography: Professor Nouriel Roubini
• Department: Economics

Until recently, relatively little attention was paid to states’ balance sheets. Measurement and reporting were neglected. Even today, states’ liabilities receive considerable attention, while their asset sides receive significantly less. Read More

President Barack Obama has appointed two prosecutors as senior regulators and said he was closely watching the banks for signs of recurring “irresponsible behaviour”.

The action suggests that the next few years are likely to be much the same as the past. All of the current misery of the prolonged Great Recession is to be considered mainly the fault of irresponsible executives of the banks. Read More

• Biography: Professor Roy C. Smith
• Department: Finance

In an era of bubbles, crashes, tarnished reputations, and outrage over the gulf between the wealthy and the struggling classes, it may seem like the height of insolence to suggest that stock markets hold the key to economic recovery in the United States and Europe. Wasn't it market misbehavior that got us into this mess in the first place? But, in fact, policymakers would still do well to look to the stock market as an essential indicator of the likely impact of their reforms. Read More

• Biography: Dean Peter Blair Henry
• Department: Economics

If you have been an Apple stockholder last year, you probably feel like you have been on a roller coaster.

Apple began 2012 by attaining the largest market cap in the world, with some analysts predicting that it would cross a trillion in market value. The stock price hit $700 in September, around the introduction of the iPhone 5. But in the weeks after, disillusionment set in and the stock price dropped to about $500 by the end of the year. Recent earnings disappointment has plunged the stock some 12%, and panic seems to have set in. Read More

• Biography: Professor Aswath Damodaran
• Department: Finance

All eyes are on digital titan Apple this week. Despite quarterly profits of over $13 billion, the recent success of the iPad mini, and seemingly strong growth rates for both the iPhone and iPad, the share price is off more than a third from its pre-iPhone-5 launch high of over $700, and the company has shed over $200 billion in market cap over the last five months. Could this merely be the extreme volatility often associated with the digital sector? Or perhaps the expectations of Apple's investors have evolved to mirror those of iconic founder Jobs, demanding nothing less than perfection from the company? Read More

• Biography: Professor Arun Sundararajan
• Department: Information, Operations and Management Sciences

The global economy this year will exhibit some similarities with the conditions that prevailed in 2012. No surprise there: we face another year in which global growth will average about 3%, but with a multi-speed recovery – a sub-par, below-trend annual rate of 1% in the advanced economies, and close-to-trend rates of 5% in emerging markets. But there will be some important differences as well. Read More

• Biography: Professor Nouriel Roubini
• Department: Economics

Despite the largest financial crisis since the 1930s, progress towards international coordination of financial regulation remains dismally slow.

To speed the development of a harmonized regulatory framework, policymakers need to focus on international rules for financial instruments, rather than just financial institutions. Read More

• Biography: Professor Viral Acharya
• Department: Finance

New technologies of various kinds, together with globalization, are powerfully affecting the range of employment options for individuals in advanced and developing countries alike – and at various levels of education. Technological innovations are not only reducing the number of routine jobs, but also causing changes in global supply chains and networks that result in the relocation of routine jobs – and, increasingly, non-routine jobs at multiple skill levels – in the tradable sector of many economies. Read More

• Biography: Professor A. Michael Spence
• Department: Economics

Avis has taken an interesting (and bold) step by acquiring Zipcar, absorbing an innovative but struggling competitor at what is likely to be seen as a bargain price while acquiring a small but desirable customer base and gaining a foothold in the rapidly growing world of collaborative consumption. Sadly, the Zipcar culture may not survive the merger. But in the world of new "sharing economy" models that generate efficiency gains, theirs is just the tip of the iceberg. Read More

• Biography: Professor Arun Sundararajan
• Department: Information, Operations and Management Sciences

The deal reached in Washington on New Year’s day prevented the US economy from falling off the so-called fiscal cliff. However, given the dysfunctional nature of the American political system, it won’t be long before there is another crisis. Read More

• Biography: Professor Nouriel Roubini
• Department: Economics

Facebook Gifts rolled out after a two-month beta last week, seamlessly melding social with shopping. Not to be outdone, Amazon recently released its Friends and Family Gifting option with the same kind of social gifting visibility. For Facebook, another puzzle piece of its business model falls into place. For users, gift giving becomes by default a public rather than private activity: People can now fluidly and visibly give their friends holiday presents ranging from iTunes cards to Chandon champagne. Read More

• Biography: Professor Arun Sundararajan
• Department: Information, Operations and Management Sciences

Banking crises take a long time to get over. It was five years last month since Charles Prince resigned as chief executive of Citigroup after massive write-offs. Prince’s permanent successor, Vikram Pandit, has now also been replaced, but the bank is still a long way off recovery.

It took Citi about 10 years to get through the last crisis, which began after Continental Illinois, the seventh-largest US bank, failed in 1984 from an excess of aggressive lending and weak credit controls. Citi, which was the most aggressive of the kick-ass lenders of that time, didn’t fail then but came close. John Reed took over as chief executive in 1984 and, under close supervision from the Federal Reserve, nursed it along. Profits from consumer banking helped offset sovereign, corporate and real estate loan losses until 1994. Read More

• Biography: Professor Roy C. Smith
• Department: Finance

Digital-savvy New Yorkers were disappointed in October when, after a month of operations, San-Francisco based startup Uber ended the New York City taxi pilot it was running with 160 yellow cabs. For a matter of weeks, people could download a free app onto their smartphone and use it to e-hail a cab by clicking on a “request pickup here” button, getting an exact wait time and a real-time GPS position of their taxi visible on a mobile map. After the ride, the customer’s credit card on file was charged — no multiple swipes or cash exchange needed. Read More

• Biography: Professor Arun Sundararajan
• Department: Information, Operations and Management Sciences

Suppose you're a malevolent engineer trying to design a grave threat to Earth. Your aim is to create a force that does plenty of damage by stealth, somehow evading the attention of the governments who might otherwise frustrate your plans. Well, it turns out that the threat you're looking for already exists, and its name is global warming. Read More

• Biography: Professor Adam Alter
• Department: Marketing

China is at a crucial point today, as it was in 1978, when the market reforms launched by Deng Xiaoping opened its economy to the world – and as it was again in the early 1990’s, when Deng’s famous “southern tour” reaffirmed the country’s development path.

Throughout this time, examples and lessons from other countries have been important. Deng was reportedly substantially influenced by an early visit to Singapore, where accelerated growth and prosperity had come decades earlier. Understanding other developing countries’ successes and shortcomings has been – and remains – an important part of China’s approach to formulating its growth strategy. Read More

• Biography: Professor A. Michael Spence
• Department: Economics

Now that Wall Street’s huge bet on presidential candidate Mitt Romney has failed, banks face four more years of a less than sympathetic ear in the Oval Office.

The world’s major capital market banks are in bad shape. They are trading well below book value, were recently downgraded and the majority of them have failed for more than two years to earn a return on equity greater than its cost. Read More

• Biography: Professor Roy C. Smith
• Department: Finance

The hurricane on America’s eastern seaboard last week (which I experienced in lower Manhattan) adds to a growing collection of extreme weather events from which lessons should be drawn. Climate experts have long argued that the frequency and magnitude of such events are increasing, and evidence of this should certainly influence precautionary steps – and cause us to review such measures regularly. Read More

• Biography: Professor A. Michael Spence
• Department: Economics

Eight years ago, when the polls began to favor George W. Bush over John Kerry, thousands of progressive Americans planned their exodus to Canada. Canadian immigration applications rose threefold as Kerry's demise loomed, and when Bush emerged victorious, some diehard liberals followed through and fled northward. But six months later, when the post-election smoke cleared, the numbers turned out to be far less impressive than they first appeared. Many of those early applicants withdrew their immigration papers, and chose instead to brace for four years of mild, protracted disgruntlement. Read More

• Biography: Professor Adam Alter
• Department: Marketing

The voters have spoken. So, what now? How will our still divided government deal with our mounting threats and challenges?

Shared fear can help. Read More

• Biography: Professor Jonathan Haidt
• Department: Business and Society Program Area

Mention China at almost any meeting and you will trigger lively reactions, both optimistic and pessimistic. Try Brazil and you will also receive a keen response and different views, though the country’s emphasis on inclusive growth is fairly consistent and well understood. Shift the conversation to India, however, and enthusiasm visibly declines, especially recently. This matters: the Indian economy, perhaps more so than other emerging markets, will determine political and economic developments in its region and around the world. Read More

• Biography: Professor A. Michael Spence
• Department: Economics

Several days ago, with its currency in free-fall, Iran cited a recent International Monetary Fund prediction of 2013 economic growth as evidence that international sanctions against it were ineffective. When Barack Obama and Mitt Romney face off for the presidential debate on foreign policy tonight, we can expect that each candidate will be asked how he would deal with the Iranian nuclear program that these sanctions were meant to curb. Read More

• Biography: Professor Hal Hershfield
• Department: Marketing

The state of Minnesota briefly banned free online education. That’s right: Last week, an entire state told its residents they couldn’t take free online courses. Well, to be more precise: It prohibited degree-granting universities from offering classes through online community learning sites such as Coursera without first obtaining permission from the state regulatory body (and paying a registration fee, naturally). Read More

• Biography: Professor Arun Sundararajan
• Department: Information, Operations, and Management Sciences

On Tuesday, the Citigroup board, chaired by Michael O’Neill, announced the resignations – effective immediately – of chief executive Vikram Pandit and chief operating officer John Havens, a day after they had presided at a conference call announcing another round of lacklustre quarterly results. Read More

• Biography: Professor Roy Smith
• Department: Finance

Here's the result of the annual Financial Economists Roundtable, in which many of are members - like Rob Engle, Ed Altman, Marty Gruber, Kose John and myself. We always put out a public statement on our debates - this time on to account for the vast array of credit subsidies (student loans, mortgage financing, etc.) that the Federal government engages in. Read More

• Biography: Professor Ingo Walter
• Department: Finance

When the Norwegian Nobel Committee awarded the 2012 Peace Prize to the European Union (EU), they cited advances in "peace, democracy, and human rights." The common currency zone we call the Euro Area isn't mentioned, unless it's implied by the phrase "grave economic difficulties." Read More

• Biography: Professor David Backus & Professor Kim Schoenholtz
• Department: Economics

With most of the world focused on economic instability and anemic growth in the advanced countries, developing countries, with the possible exception of China, have received relatively little attention. But, as a group, emerging-market economies have been negatively affected by the recent downturn in developed countries. Can they rebound on their own? Read More

• Biography: Professor A. Michael Spence
• Departments: Economics

Remember when the culture war was about obscenity in rap music, protecting the flag from match-wielding protesters and spanking in schools? Not all so-called cultural issues have faded away — gay marriage and abortion are still quite divisive — but after the 2008 financial collapse and the rise of the libertarian-influenced Tea Party, both armies in the American culture war shifted their crack brigades over to the so-called economic issues of taxes and entitlement spending. The front line in this new culture war is fairness. Both sides claim to own the territory, yet they draw the map of American morality differently. Read More

• Biography: Professor Jonathan Haidt
• Department: Business and Society Program Area

Mitt Romney’s appointment of deficit hawk Paul Ryan as his running mate was intended to shift the main debate to economic issues where the parties are sharply divided. The last time economic issues took centre stage with such significant importance was 20 years ago when Ross Perot, as an independent, gathered 19% of the popular vote in support of his deficit reduction agenda. Read More

• Biography: Professor Roy C. Smith
• Department:  Finance

In today’s global services outsourcing arena, increasing numbers of companies adopt “multisourcing”; that is, they select and combine information technology (IT) and business services from multiple providers. The decrease in deal size, well-documented by the Global TPI Index, is one indicator that buyers are dividing their business among multiple providers. Read More

• Biography: Professor Natalia Levina
• Department: Information, Operations, and Management Sciences

In the witches’ brew of fearmongering, unkeepable promises and poll-tested metaphors that both parties serve up to the electorate every four years, you can always find this predictable dash of inspiration: the image of Americans uniting and working together for the sake of the country...

But America is not united and it is getting less and less unitable with each passing decade. Read More

• Biography: Professor Jonathan Haidt
• Department: Business & Society Program Area

The world’s high-income countries are in economic trouble, mostly related to growth and employment, and now their distress is spilling over to developing economies. What factors underlie today’s problems, and how appropriate are the likely policy responses? Read More

• Biography: Professor Michael Spence
• Department: Economics

Two trillion dollars. That is how much it could cost to end the euro crisis. According to calculations using the NYU Stern Systemic Risk Rankings, a tool for tracking global financial risk developed at New York University's Stern School of Business, $2 trillion is the amount of capital that publicly traded banks and other financial institutions in the European Union's 27 member states would need if the crisis becomes as severe as 2008's collapse in global equities. Read More

• Biography: Professor Robert Engle
• Department: Finance

A Facebook message sent out during the 2010 US congressional elections influenced the voting behaviour of millions of people. The experiment illustrates the power of digital social networks to spread behavioural change. Read More

• Biography: Professor Sinan Aral
• Department: Information, Operations and Management Sciences

A familiar refrain that was popular in the early 1990s is making a comeback during the great recession of 2008-2009, which has rocked the economy and labor market for more than five years: Is it possible that the children of this generation will not be as well-off as their parents? Read More

• Biography: Professor Thomas Cooley
• Department: Economics

NYU Stern Professor Arun Sundararajan writes in a Bloomberg op-ed that for Facebook to succeed, it has to invent and execute a business model that expands digital marketing into a realm of truly attracting, persuading and retaining customers. Read More

• Biography: Professor Arun Sundararajan
• Department: Information, Operations, and Management Sciences

When Paul Volcker took over as president of the Federal Reserve Bank of New York on Aug. 1, 1975, he became a permanent member of the Federal Open Market Committee, the panel within the Federal Reserve System responsible for managing credit conditions and interest rates. The New York Times labeled him a “monetary pragmatist,” adding that he was “philosophically sympathetic” with Fed Chairman Arthur Burns, meaning “that he leans toward tight money policies and high interest rates to retard inflation.”
Read More

• Biography: Professor William L. Silber
• Department: Finance

It is no secret that the global economy is struggling. Europe is in the midst of a crisis whose root cause is a structurally flawed monetary and economic union. Read More

• Biography: Professor Michael Spence
• Department: Economics

Both the UK and US regulators came down hard on Barclays for rigging Libor and the bank now has some tricky calls to make.
Read More

• Biography: Professor Roy C. Smith
• Department: Finance

The recent revelations by Barclays Plc (BARC) probably spell doom for the London interbank offered rate, at least in its present form.
Read More

• Biography: Professor Kim Schoenholtz & Professor Lawrence White
• Department: Economics

One year ago, I wrote about the European debt crisis and predicted that Italy would be either the hero or villain of the Euro. I felt then, as I do now, that the escalation of the crisis would come down to whether one of the key Southern European countries would be able to survive, without a bailout, the onslaught of a capital market “attack.” Read More

• Biography: Professor Edward Altman
• Department: Finance

In spite of Sunday’s victory of pro- bailout parties in the Greek election, the European Monetary Union remains in a battle for its survival. Read More

• Biography: Professors Kermit Schoenholtz, Matthew Richardson & Thomas Cooley
• Department: Economics, Finance, Center for Global Economy and Business, & Salomon Center for the Study of Financial Institutions

While the €100bn Spanish bank bailout buys some breathing space, it is still little more than a sticking plaster for the eurozone crisis. Read More

• Biography: Professor Roy Smith
• Department: Finance

This Sunday Greeks go to the polls confused, fearful and experiencing a frightening deterioration of their standard of living. The country's voters now face a crucial dilemma that will determine the future of Greece for generations: Stay in the euro or commit fiscal suicide with a return to the drachma. Read More

• Biography: Professor Nicholas Economides
• Department: Economics

This Sunday, June 17, Greeks once again will go to the polls to elect a new leader. Unlike the past when elections were all about the right versus the left side of the political spectrum, this one is about whether Greece should stay in the European Monetary Union (EMU) and implement the necessary austerity. The threat of an imminent Greek exit from the euro is self-evident. Read More

• Biography: Professors Matthew Richardson Thomas Cooley, & Kermit Schoenholtz
• Department: Economics, Finance, Center for Global Economy and Business, & Salomon Center for the Study of Financial Institutions

When the New York Yankees recently confirmed that they were revisiting whether to permit their tickets to be sold on StubHub below face value, it focused attention on the manner in which teams, entertainers, venues, and ticket sellers in general try to control what you can do with a ticket to a sports event or a concert that you bought with your own money. Read More

• Biography: Professor Lawrence White
• Department: Economics

As the dust settles around the Facebook IPO, the important question becomes not what went wrong, but rather, how will Facebook create value to justify its lofty valuation? Read More

• Biography: Professor Vasant Dhar
• Department: Information, Operations and Management Sciences

The furore over JP Morgan Chase’s surprise trading loss – $2bn gross, $800m net – maybe larger after unwinding – has been overdone for two important reasons: it was not a systemic event by any measure, and the bank moved quickly to clean up the mess after clearly indicating that the loss exceeded its tolerable limits on the $400bn portfolio involved. Read More

• Biography: Professor Roy Smith
• Department: Finance

The Facebook IPO did not follow the usual script. Instead of launching the largest social media company in the world as a legitimate and valuable business, the IPO has laid bare all of the questions and doubts about its potential performance. So why did the Facebook IPO bomb as badly as it did? Read More

• Biography: Professor Aswath Damodaran
• Department: Finance
• Additional Links: Musings on Markets

Now that the Facebook IPO is behind us, though the hype and the debate about the offering will continue for the weeks to come, it is time to step back and make an assessment of its value as a company, how it was priced and what may have gone awry. Read More

• Biography: Professor Aswath Damodaran
• Department: Finance
• Additional Links: Musings on Markets

Here we go again. The perennial question of: "Would you rather own shares in a major financial conglomerate or manage one?" comes up as JPMorgan Chase loses more than $2 billion in trading bets. Read More

• Biography: Professors Ingo Walter & Jennifer Carpenter
• Department: Finance

The great thing about the investment banking industry is that it survives all its crises and endures. The not so great thing is that firms that comprise the industry do not. Read More

• Biography: Professor Roy Smith
• Department: Finance

Collaboration is the way we work now. In a 2008 BusinessWeek study of white-collar professionals, 82% reported they needed to partner with others throughout the day to get their work done. Read More

• Biography: Professor Anat Lechner
• Department: Management & Organizations

Deutsche Bank AG (DBK) recently separated its U.S. investment bank from its bank holding company, removing it from supervision by the Federal Reserve. So far, U.S. regulators have reacted passively to such moves by foreign banks to avoid the heightened capital requirements mandated by the Dodd-Frank Act. Read More

• Biography: Professor Thomas Cooley, Professor Kim Schoenholtz
• Department: Economics, Center for Global Economy and Business

This metric, called SRISK, estimates the amount of new capital that banks would have to raise if markets experienced a 40% drop over a short period in a panic situation, such as occurred in 2008. Read More

• Biography: Professor Roy Smith
• Department: Finance

With a billion people on the social graph (Facebook, Twitter and the other social platforms) and five billion with cellphones, it’s an understatement to say that we live in a hyper-connected world. Read More

• Biography: Professor Anindya Ghose
• Department: Information, Operations and Management Sciences

Credit default swaps have been controversial almost since they were first conceived about 15 years ago. Many have argued that the contracts lack clarity and are open to arbitrary interpretation. Read More

• Biography: Professor Marti Subrahmanyam
• Department: Finance

The European Central Bank has averted disaster, sparking a powerful relief rally – but nothing fundamental has been resolved. Read More

• Biography: Professor Nouriel Roubini
• Department: Economics

After the US Federal Reserve’s Open Market Committee meeting in January Ben Bernanke, the chairman, announced it would begin publishing its views on future interest rates. Read More

• Biography: Professor Thomas Sargent & William Silber
• Department: Finance and Economics

Self-interest — greed, if you like — did not arrive at Goldman Sachs around the time Greg Smith joined the firm in 2001. What had changed shortly before Smith signed on was that Goldman in 1999 had switched from being a partnership to a corporation. Goldman was the last of the major Wall Street investment banks to do so, which perhaps led it to try to make up for lost time. Read More

• Biography: Professor Richard Sylla
• Department: Economics

America today is very different from the country that fought the Revolutionary War and framed the Constitution. Read More

• Biography: Professor Ralph Gomory

The Federal Reserve’s 2012 stress tests of U.S. banks suffered from some of the same weaknesses as the ones it conducted last year Read More

• Biography: Professor Kermit Schoenholtz
• Department: Center for Global Economy and Business

In a recent paper, I suggested that regulation of financial institutions could look less like the legalistic regulation at OSHA and more like the system of regulation with responsibility at the FAA.

The system of financial regulation in Canada illustrates what this could look like. Read More

• Biography: Professor Paul Romer
• Department: Economics
• Additional Links: Urbanization Project

Companies can benefit from giving advance notice about earnings. But they need to be smart about it. Read More

• Biography: Professor Baruch Lev
• Department: Accounting

After the recent global summit at Davos, many observers remarked how pessimistic they felt about the future of the world. Among the movers and shakers there, uncertainty reigned, about the US economy, about the European economy, and even about the economies of the emerging markets. The only beacon of hope was Africa. Read More

• Biography: Professor Anindya Ghose
• Department: Information, Operations and Management Sciences

On Wednesday, January 25, the European Commission will require that companies secure explicit consent from consumers to use their personal information in new regulation that unifies privacy standards across the EU. Two NYU Stern Professors, Vasant Dhar and Arun Sundararajan, disagree with this recommendation. Read More

• Biography: Professors Vasant Dhar & Arun Sundararajan
• Department: Information, Operations and Management Sciences & Center for Digital Economy Research

It’s been over three years since Fannie Mae and Freddie Mac were placed in government conservatorships, effectively making them wards of the U.S. Treasury. Read More

• Biography: Professor Viral Acharya, Professor Matthew Richardson, Professor Stijn Van Nieuwerburgh, Professor Lawrence White
• Department: Economics, Finance
• Additional Links: Guaranteed to Fail

A myth is developing that private creditors have accepted significant losses in the restructuring of Greece’s debt; while the official sector gets off scot free. International Monetary Fund claims have traditional seniority, but bonds held by the European Central Bank and other eurozone central banks are also escaping a haircut, as are loans from the eurozone’s rescue funds with the same legal status as private claims. So, the argument runs, private claims have been “subordinated” to official ones in a breach of accepted legal practice. The reality is that private creditors got a very sweet deal while most actual and future losses have been transferred to the official creditors. Read More

• Biography: Professor Nouriel Roubini
• Department: Economics

Today, the U.S. Federal Open Market Committee (FOMC) announced a major update of its framework for setting monetary policy. Read More

• Biography: Professors Kermit Schoenholtz
• Department: Economics & Center for Global Economy and Business
• Additional Links: NYU Stern Economics blog

A finger in the dike won’t solve the euro crisis.

But, what would decisive political action look like? Here is one example:

Alexander Hamilton, the first Treasury secretary, argued strongly for “Assumption” – that the federal government should assume and honor the debts of all the states, financing them by issuing federal bonds and raising tariffs and excise taxes. Read More

• Biography: Professors Thomas Cooley, Matthew Richardson & Kermit Schoenholtz
• Department: Economics, Finance, Center for Global Economy and Business, & Salomon Center for the Study of Financial Institutions

The eurozone financial system is at serious risk of collapse — which would mean calamity for the US system, too. But our government’s not prepared. Read More

• Biography: Professors Matthew Richardson Thomas Cooley, & Kermit Schoenholtz
• Department: Economics, Finance, Center for Global Economy and Business, & Salomon Center for the Study of Financial Institutions

Both Securities and Exchange Commission Chairman Mary Schapiro and Federal Reserve Chairman Ben Bernanke have warned in recent days that money market funds remain vulnerable to runs. That is unquestionably true, and if a run occurs, U.S. taxpayers will bear the costs of bailing them out. Should taxpayers continue to subsidize the money market mutual fund (MMMF) industry? Read More

• Biography: Professor Thomas Cooley, Professor Kim Schoenholtz
• Department: Economics, Center for Global Economy and Business

Four years ago, in December 2007, less than 12 months after selling his hedge fund to Citigroup for $800m, Vikram Pandit became its chief executive. He replaced Charles Prince, appointed by the board in 2003 after the pressured resignation of Sandy Weill. Read More

• Biography: Professor Roy Smith
• Department: Finance

Late last month, Public Citizen, a non-profit public interest group with 80,000 supporters, according to its website, filed a 24-page petition with the Financial Stability Oversight Council requesting it to declare Bank of America a “grave threat” to the stability of the US financial system under section 121 of the Dodd-Frank Act. Read More

• Biography: Professor Roy Smith
• Department: Finance