“Blockchain technology is threatening to remake the financial system from the top down in a way that threatens the existence of all the banks, stock changes, and all of the legacy financial institutions. I expect that within the next 10 years, probably half of the banks will be gone.”
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A new paper by Elisabeth Kempf from the University of Chicago looks into the performance of credit analysts who left to work for investment banks and finds that they were more accurate than their peers.
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Ben-Artzi: “The problem is not that you have misbehavior on Wall Street. It’s that you have misbehavior by the people who are supposed to enforce the law, by the prosecutors, by the regulators.”
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Yermack, the Albert Fingerhut Professor of Finance and Business Transformation at New York University Stern School of Business, will teach a mini-course of three stand-alone lunch seminars on the potential implications of blockchain technologies at the Stigler Center next week.
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Stanford professor Anat Admati discusses her new paper, in which she explains how a mix of distorted incentives, ignorance, confusion, and lack of accountability contributes to the persistence of a dangerous and poorly regulated financial system.
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The entire board of Wells Fargo, not just the CEO, needs to be replaced.
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Eric Ben-Artzi, the former Deutsche Bank risk officer turned whistleblower who rejected a multi-million dollar award from the SEC, will give a talk at the Stigler Center on Thursday via video conference.
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A former investment banker examines the culture that incentivizes people in the industry to put their interests before their clients’. Part three in a series of columns by anonymous sources that reveal how industries work from within.
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If the criticisms against Wall Street had been accurate, the U.S. corporate sector today would be ailing. Instead, corporate profits are at historical highs both absolutely and relative to GDP.
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Bank executives frequently proclaim that Wall Street is vital to the nation’s economy and performs socially valuable services by raising capital, providing liquidity to investors, and ensuring that securities are priced accurately so that money flows to where it will be most productive. There’s just one problem: the Wall Street mantra isn’t true.
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New study estimates that the total costs of America’s flawed financial system–rents, misallocation costs, and the costs of the 2008 crisis–will add up to an estimated $22.7 trillion between 1990 and 2023.
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In order to get optimal regulation in the financial world, says Alan Blinder, the former Vice Chair of the Federal Reserve, one should seek to over-regulate.
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