AICPA | www.IFRS.com : Updates : FASB. Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide by Christopher Mayer, Edward Morrison, Tomasz Piskorski, Arpit Gupta. Christopher J. Mayer Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER) Edward R. Morrison University of Chicago - Law School Tomasz Piskorski Columbia Business School - Finance and Economics Arpit Gupta Columbia University - Columbia Business SchoolOctober 11, 2012 Columbia Law and Economics Working Paper No. 404 Abstract: We investigate whether homeowners respond strategically to news of mortgage modification programs by defaulting on their mortgages.
Number of Pages in PDF File: 59 Keywords: Strategic behavior, mortgage modification, default, foreclosure crisis, Countrywide JEL Classification: D10, G21, G33, K00 working papers series Suggested Citation Mayer, Christopher J. and Morrison, Edward R. and Piskorski, Tomasz and Gupta, Arpit, Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide (October 11, 2012). White House Issues Fact Sheet on Debt Deal - Washington Wire. Government Debt World Undergoes Sea Change. Introduction_Final. The President Surrenders on Debt Ceiling. Time to Go it Alone and Bolt from Basel? Former Tarp Executive Calls for Big Bank Breakup.
Nervous Investors Chase Low-Risk Assets. Is Fat Good in Finance? Looking at the Vickers Report - Bank Think Article. "In financial ecosystems, evolutionary forces have often been survival of the fattest rather than the fittest. " So says Andrew Haldane, Executive Director for Financial Stability at the Bank of England. He is right. Fat is good in finance; the bigger the better, at least if you need to get bailed out. One of the siren songs heard throughout the debate regarding the ongoing financial crisis is the seemingly obvious idea that "capitalism has failed" and that markets cannot self-police and adjust.
To be clear: we haven’t practiced true, responsible competition and free-market capitalism in the financial services sector for many decades. To put a finer point on this, as a former bank supervisor I recall a meeting with one of the largest banks in the United States, an entity whose leadership was early to recognize that size matters and could be used to radically reshape financial competition through non-organic growth, opacity, and influence. If only this were true. Only time will tell. Hire for Attitude, Train for Skill - Bill Taylor. Shorting bans: What the four European regulators are prohibiting (and what they’re not) | Financial Regulatory Forum. By Peter Elstob LONDON, Aug. 15 (Thomson Reuters Accelus) – The bans on short-selling the shares in a number of banks and insurance companies (and one stock exchange) that four member states imposed on Friday did not bring the single European rulebook any closer.
However, the European Commission will be hoping that the separate initiatives by the Belgian, French, Italian and Spanish market regulators, which came out of “coordinated discussions” during a conference call on Thursday evening involving all 27 members of the European Securities and Markets Authority, do not put it further away. Some of the details of each national action are set out below, and they do indeed appear to be harmonised, at least to an extent.
More detail, and also any updates to the lists of issuers included, should be sought on the respective regulators’ websites. – Market makers and liquidity providers as defined in the Euronext Rule Book. – Block trade counterparties. Five Worst Mistakes Entrepreneurs Make When Pitching Angel Investors. Here's a look at the biggest blunders and how to avoid them. An effective elevator pitch can be crucial for entrepreneurs trying to secure funding from angel investors. The goal of the pitch -- written or delivered face-to-face -- is to briefly share the "who, what, where, when, why and how" of your business, while piquing an investor's interest. The tricky part is cramming all of that into one explanation that, hypothetically, should be delivered in the time span of an elevator ride. "The pitch has to grab me quickly," says Paul Silva, manager of Springfield, Mass.
-based angel group River Valley Investors. "For instance, with written pitch applications, we read the first few sentences and then toss half to two thirds of them away. " The best pitches, he says, describe the market the business is in, explain what problem it solves and demonstrate a track record. Here are five of the worst elevator-pitch mistakes entrepreneurs make -- and how to avoid them. The Fix: Tell a story. Recovery Plans Need More Attention than Living Wills - Bank Think Article. One of the vital lessons learned from our ongoing financial crisis is the difficulty in measuring the potential impacts of a large, cross-border bank failure. Variance in supervisory processes, regulatory and firm readiness, bankruptcy laws, resolution regimes, policy responses, and official sector coordination mechanisms exposed a vacuum of information necessary to reduce the amplification of stress. These gaps impose enormous un-funded costs to the system. In the United States the Dodd-Frank Act attempts to enhance the government's ability to cope with stress events by requiring "living wills," formally known as "resolution" or sometimes "death" plans.
The theory is that during the next material and potentially irrecoverable stress, the government will have a "roadmap" for how it might proceed to unwind a systemic, or firm-wide failure. Recovery plans focus on restoring health to a financial organization prior to being placed into a resolution framework. Simply put, much work remains. Steve Jobs' Commencement Address at Stanford University.
BBC. American Thinker: The Soros Plan to Remake Global Finance. George Soros is right; the world's financial system does need to be reformed, but just not in the way he and his collectivist cohorts envision. So moved by the ongoing financial crisis, Soros felt compelled to take action. The world has suffered as a result of "unfettered" financial markets and Soros decided now is the time to rethink how the global economy and markets should function. "The entire edifice of global financial markets has been erected on the false premise that markets can be left to their own devices, we must find a new paradigm and rebuild from the ground up. I decided to sponsor INET to facilitate the process.
This implies aggressive market intervention measures carried out by policymakers and regulators had little to do with creating the crisis. Anyway, so began Soros' quest to correct the "deficiencies in our outdated current economic theories" which facilitated the seemingly inadequately named "Great Recession. " The Concept of Justice in the History of Economic Thought by Matthias Lennig. Goethe University Frankfurt; Goethe University Frankfurt - Cluster of Excellence Normative OrdersMay 31, 2011 Abstract: Economic thought has shifted its focus from an essentially normative approach, dealing with the question of justice, to an emphasis on efficiency and equilibria. This paper traces the changing perception of the issue of justice in the history of economic thought. Today, many heterodox economists maintain this long tradition of thinking about justice. In mainstream theory, i. e. neoclassical theory, however, justice is not regarded as being part of its research agenda.
Consequently, economics is widely defined and perceived as the science of efficiency, and contemplation on the concept of justice is outsourced into neighbouring disciplines such as political science, law, sociology and philosophy in particular. Furthermore, it becomes apparent that ideas of justice are never creations ex nihilo, but develop from the entirety of traditional thought on that matter.
Bernanke On Trial For Crimes Against Humanity; To Be Judged By Citizen Councils Led By Glenn Greenwald & Alex Jones. What? I didn't mention it was fiction? Guest post from reader, Truth Excavator, working on clandestine ops from Disquiet Reservations. There are people who care about their country and then there are fanatics. Say thanks for this particular fanatic. The Trial Of The Millenium: A Prescript This is a piece of futurist, speculative fiction, mixed in with the concerns and events of the present day. I am an angry optimist and believe that America can be redeemed if her Citizens are willing to unite and take the mantle of Justice upon their back.
"You have to have fiction to raise the imaginative capability, what is feasible to fulfill life’s possibilities for people in this country and abroad. "The idea that a state, any more than a corporation, commits crimes, is a fiction. The following is a transcript of the much anticipated exchange between former Fed Chairman Ben Bernanke, and Congressman Ron Paul, which took place before Bernanke's preliminary hearing in court. Jeremy Scahill: Hi Amy.
Consumer Behavior: The Psychology of Marketing. Upside Potential Ratio. J.P. Morgan | From Alpha to Omega: The Omega Measure. By Dr. Fred Novometsky, Ph.D J.P. Morgan Investment Analytics & Consulting The remarkable financial innovation that has taken place in the past 20 years has transformed the investment management process as well as the analysis of realized investment performance. There are many illustrations of the problems facing today’s institutional investors, including alpha transport, market neutral long / short investing, target date funds, liability driven investing and enhanced equity indexation.
The assessment of expected tail losses, the analysis of derivative security exposures, the estimation of value-at-risk and the application of multi-factor performance attribution models are examples of some of the tools that investment performance analysts are using to respond to the world of investing. This article introduces the omega measure developed by Shadwick and Keating (2002) and Cascon et al. (2003). Illustration of the Omega Measure The omega measure for the 5% annual target return is 1.1186. Yesterday's Heroes: Compensation and Creative Risk-Taking by Ing-Haw Cheng, Harrison Hong, Jose Scheinkman. Ing-Haw Cheng Dartmouth College - Tuck School of Business Harrison G.
Hong Princeton University - Department of Economics; National Bureau of Economic Research (NBER) Jose A. Scheinkman Columbia University; Princeton University - Department of Economics; National Bureau of Economic Research (NBER)December 27, 2013 AFA 2011 Denver Meetings Paper ECGI - Finance Working Paper No. 285/2010 Abstract: Many believe that compensation, misaligned from shareholder value due to managerial entrenchment, caused some financial firms to take creative risks before the Financial Crisis of 2008. Number of Pages in PDF File: 49 Keywords: financial crisis, executive compensation JEL Classification: G2, G34 Accepted Paper Series Suggested Citation Cheng, Ing-Haw and Hong, Harrison G. and Scheinkman, Jose A., Yesterday's Heroes: Compensation and Risk at Financial Firms (December 27, 2013).
The Irresponsible Investor. Plug into a Google search engine the words ''investors'' and ''corporate corruption'' and you could spend the rest of your life reading about the many ways in which the former have been abused by the latter. Plug the same words into the company Google and you'll get a strikingly different result. In their recent letter to financial markets in which they lay out the ground rules for their public-share offering, the company's founders, Larry Page and Sergey Brin, insist that Rule No.1 will be ''Don't be evil.'' This, they seem to think, will strike their audience as a radical idea. That is because the audience consists, mainly, of investors. Five long years in Silicon Valley have apparently taught the Google founders a great deal about the people who are about to make them billionaires. 1) The investor cares about short-term gains in stock prices a lot more than he does about the long-term viability of a company.
This is new. Yet act he does; and he has options. Text.pdf (application/pdf Object) Speeches & Testimony - 4/14/2011. Statement of Arthur J. Murton, Director, Division of Insurance and Research, Federal Deposit Insurance Corporation on Oversight of the Financial Stability Oversight Council before the Subcommittee on Oversight and Investigations, House Financial Services Committee; 2128 Rayburn House Office Building April 14, 2011 Chairman Neugebauer, Ranking Member Capuano, and members of the Subcommittee, thank you for the opportunity to testify today on behalf of the Federal Deposit Insurance Corporation on issues related to the Financial Stability Oversight Council (FSOC). The recent financial crisis exposed shortcomings in our regulatory framework for monitoring risk and supervising the financial system. Insufficient capital at many financial institutions, misaligned incentives in securitization markets and the rise of a largely unregulated shadow banking system permitted excess and instability to build up in the U.S. financial system.
Background and FDIC's Participation in the FSOC SIFI Designation. HEARD ON THE STREET: J.P. Morgan Still Chasing Growth. Heard on the Street: Bank, Pray, Plan. Fed ‘Beige Book’ Report Says Economy Continues to Improve. Regulators Order 14 Banks to Revamp Foreclosure Practices. Senate Report Lays Bare Mortgage Mess. U.S. Asks if Banks Colluded on Libor. Financial Crisis With Few Prosecutions. President Open to Deal on Debt Cap. Updated April 12, 2011 12:01 a.m. ET White House officials have opened the door to a deal with Republicans that would allow the U.S. to increase its ability to borrow, potentially easing worries in financial markets that the country might default on its debt. Softening the administration's earlier insistence that Congress raise the so-called debt ceiling without conditions, officials now say they won't rule out linking an increase of the borrowing cap with cuts aimed at reducing the deficit—even though they'd prefer to keep the issues separate.
The shift by the White House comes at a critical point in a debate about the country's fiscal future. Last week, Congress and the president inked a deal to avert a government shutdown, shifting the focus of debate to the next milestone: The point in the next few weeks when the U.S. hits its borrowing limit. U.S. debt reached $14.213 trillion on Friday, just $81 billion under a limit set by Congress. Mr. Sen. —Timothy W.