Experience Stern | News & Events

Excerpt from Suddeutsche (translated from German using Google Translate) -- "[Sascha Steffen, professor at the European School of Management and Technology (ESMT) in Berlin] along with his colleague in New York, Viral Acharya, examines the stability of 109 of the 124 banks that will be reviewed this year by the European Central Bank (ECB) and subjected to a so-called stress test."

Excerpt from TIME -- "Roubini believes that the U.S. is going to grow about 2.5 percent this year, which is up from predictions of the last few years, but below the consensus. As incoming Fed chair Janet Yellen told me last week, she and the other Fed governors are 'hopeful that the first digit [of GDP growth] this year will be 3 rather than 2.' But neither Bremmer nor Roubini was hopeful that it would be enough to close the inequality gap in the US, one of the key goals for President Obama in the remainder of his term."

Excerpt from Fortune -- "'We won't see a hard landing this year,' says Roubini. 'But 50% of China's economic growth comes from the government. That's not sustainable.'"

Excerpt from VoxEU -- "A comprehensive and decisive AQR will most likely reveal a substantial lack of capital in many peripheral and core European banks. This study provides estimates of the capital shortfalls of banks that will be stress-tested under the AQR using publicly available data and a series of shortfall measures."

Excerpt from US News -- "Jack Hanlon, who is pursuing an M.S. in business analytics at NYU, says that knowing about the teachers and their qualifications is an important aspect to weigh as a prospective student. 'Many of these professors are actually consultants outside of being professors. And that I take very seriously,' he says when referencing his teachers. 'This field is just changing too fast to be teaching it out of a textbook.'"

Excerpt from Politico -- "Her influence, known as the 'Michelle Obama Effect,' has literally moved markets: A 2009 study at NYU’s Stern School of Business examined 29 companies whose clothes she had worn over the previous year, and found that the firms experienced, on average, 2-3 percent climb in stock prices as a result. When her husband was still on the campaign trail, she wore a green pencil skirt by J. Crew on 'The Tonight Show,' and is said to have accounted for a 25 percent spike in the company’s stock over the next three days."

Excerpt from Reuters -- "The new study, by Viral Acharya, a New York University Professor and advisor to the European Systemic Risk Board (ESRB), and Sascha Steffen, of Berlin's European School of Management and Technology, was circulated to banks, think tanks and the ESRB in recent weeks. In their paper, Acharya and Steffen said euro zone banks would need up to 767 billion euros to bring their capital to the level seen by the Bank of England's head of financial stability, Andrew Haldane, as needed for the banks to have withstood the last crisis."

Excerpt from Financial Times -- "Urban residents have shared their assets and space informally for centuries, but innovative network technologies and social tools have made co-producing, lending, trading and renting assets cheaper and easier than ever before—and therefore possible on a much larger scale."

Excerpt from Bloomberg Businessweek -- "Peter Blair Henry, dean of New York University’s Stern School of Business, says he detects schadenfreude over the struggles of some emerging nations: 'Even amongst the educated elite there’s this idea about the global economy as a series of zero-sum scorecards.'”

Excerpt from Fox Business -- "From the banks’ perspective, Bernanke’s wealth of knowledge about the inner workings of the Fed would be invaluable. 'Who better than he would be able to guess what Fed policy would be, and what the effects of tapering would be?' said Richard Sylla, an economist and financial historian at NYU."

Excerpt from Next City -- "New York Democrat Nydia Velázquez, for example, said that 'It will be difficult, if not impossible, to capture their contribution in official employment statistics.' She was on the right track, Arun Sundararajan of NYU’s Stern School of Business affirmed: 'One of the ramifications is that we may be not measuring the full extent to which the country is employed, because we tend to count employment in terms of whole jobs.' Lawmakers, he suggested, need to start thinking about the contributions of more fragmented toil to the economy."

Excerpt from The Guardian -- "In their book Co-opetition, Adam Brandenburger and Barry Nalebuff offer the analogy of a judo match – competitors use their own strengths and their opponents' weaknesses as they face each other. The fate of one person is interdependent with the other; the move one person makes influences the moves made by the other. Providers will fare better if they work together rather than working in isolation."

Excerpt from Edge.org -- "The worship of parsimony is understandable in the natural sciences, where it sometimes does happen that a single law or principle, or a very simple theory, explains a vast and diverse set of observations. Newton's three laws really do explain the movements of all inanimate objects. Plate tectonics really does explain earthquakes, volcanoes, and the complementary coastlines of Africa and South America. Natural selection really does explain why plants, animals, and fungi look as they do. But in the social sciences, the overzealous pursuit of parsimony has been a disaster."

Excerpt from CNBC -- "The latest data show inflation in the euro area has slowed well below the European Central Bank's stated goal, and many of the economies risk a renewed contraction. Downward pressure on prices is likely to persist. It is not out of the question that the region could sink into a sustained deflation that would further cripple the economy. The ECB needs to take this threat seriously and demonstrate now that it has the policy tools (and is prepared to use them) in the event of a new deflationary shock."

Excerpt from Huffington Post -- "Stern School of Business Professor Arun Sundararajan says we may see an overall shift in consumer attitudes toward surge pricing in the coming year, as the ridesharing market 'thickens,' with more supply coming online, and less volatile price swings."

Excerpt from Bloomberg -- "Seven recipients of the Nobel Prize in Economic Sciences were among 75 economists endorsing an increase in the minimum wage for U.S. workers... Nobel Prize winners Kenneth Arrow, Peter Diamond, Eric Maskin, Thomas Schelling, Robert Solow, Michael Spence and Joseph Stiglitz were among signatories of the letter."

Excerpt from The New York Times -- "The economy has been changing, and new forces are causing inequality to feed on itself. One is that the higher incomes of top earners have been shifting consumer demand in favor of goods whose value stems from the talents of other top earners. Because the wealthy have just about every possession anyone might need, they tend to spend their extra income in pursuit of something special. And, often, what makes goods special today is that they’re produced by people or organizations whose talents can’t be duplicated easily."

Excerpt from Bloomberg -- "Services like Airbnb, RelayRides and DogVacay are on track to account for 'at least a single-digit percentage' of GDP in five years, said Arun Sundararajan, a professor at the Stern School of Business."

Excerpt from City A.M. -- "This year’s fight will not be on policy, regardless of how much noise the two sides make in support of their agendas. Instead, the real struggle will be for the seven Senate seats currently held by Democrats in states won by Republican presidential candidate Mitt Romney in 2012. The predictability imposed by the November elections is good news for an economy driven by companies and investors that want a break from political surprises."

Excerpt from the Economic Times -- "Last year, we saw social media companies going public. Four months ago I was debating an analyst who was arguing Twitter was worth four times more than what it is. I asked why do you think it is worth so much. He said the size of the advertising market is going to be huge. I said yes, but it does not mean Twitter is worth a lot. I don't see the direct link. If you think Twitter is going to be winner tell me who the losers are? The analyst was projecting revenues of Twitter of about $45 billion. I said okay, but the online advertising market is right now only $120 billion."

Excerpt from The Washington Post -- "To really improve ethical behavior in business, we’ve got to change the paths on which elephants travel. We’ve got to teach our students how to harness social psychology research as they become leaders, so they can put up guardrails and re-route paths away from slippery ethical slopes. A group of us who teach in business schools have come together to help graduates and corporate leaders do that. We created a site, EthicalSystems.org, which collects research findings about how to reduce the risk of ethical failures."

Excerpt from The New York Times -- “'It used to be business ethics grew out of philosophy, with a focus on the right thing to do,' said Jonathan Haidt, a professor of ethical leadership at New York University’s Leonard N. Stern School of Business. 'In the last 10 years there’s been an explosion of research in behavioral economics' and the underlying reasons people act the way they do."

Excerpt from The New York Times -- "Hedge funds must reveal only their stock holdings, though many of them also sell shares short and trade other kinds of securities, said Stephen J. Brown, a professor of finance at New York University. What’s more, hedge funds must disclose only stocks in which they owned at least $100 million worth of shares at quarter’s end and can wait until 45 days after that to file, he said. They don’t have to say whether they changed their holdings in the interim. In a recent paper, Professor Brown and Christopher G. Schwarz, an assistant professor of finance at the University of California, Irvine, found that trading spiked around filing dates but that investing in the disclosed stocks provided a long-term average return no higher than what investors would have earned by putting money in a broad portfolio of stocks with similar characteristics."

Excerpt from Financial Times -- "Worldwide investigations into financial benchmarks have been under way for years now and the list of suspect benchmarks continues to grow. It now includes headliners such as Libor, Euribor, Tibor, ISDAfix, Platts and foreign exchange, with potentially more to come. Hundreds of trillions of dollars in contracts and trades are anchored to these benchmarks, impacting financial markets across the globe. These recent scandals have shaken the market’s confidence in benchmarks. Market participants are beginning to understand that too many benchmark systems are structured to provide the means, motive and opportunity to collude and manipulate these important numbers."

Excerpt from The Atlantic -- "We consider many things morally wrong not because they cause immediate harm but because they seem physically or spiritually impure. Psychologist Jonathan Haidt and collaborators have explored reactions to many examples of purity violations, such as eating a dead dog, or signing a piece of paper declaring your soul for sale."