Faculty News

In an op-ed, Prof. Edward Altman argues that the fate of the euro hinges on Italy

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Excerpt from Forbes -- "Our updated bottom-up results through the end of 2011 are startling and highly indicative of the profound deterioration of all European nations in just one year, with Italy and France 'leading the way' down."
Faculty News

Prof. Jim Liew on the ability of hedge funds to outperform the market as a whole

Excerpt from Bloomberg Businessweek -- "'Clearly, the bigger you get, the harder it is to generate alpha,' says Jim Liew, a professor of hedge fund strategies at New York University’s Stern School of Business."
Faculty News

Prof. Lasse Pedersen is awarded the 2011 Bernácer Prize

Excerpt from Europe Central Bank -- "Without doubt, Lasse Pedersen has been one of the leading minds that have re-shaped our thinking about financial markets, as his contributions during the past decade have greatly improved our understanding of the driving forces behind systemic financial crises and the propagation of liquidity shocks across markets and throughout the economy."
Faculty News

An interview with Prof. Scott Galloway on the News Corp. split

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Excerpt from Bloomberg TV -- "This isn't a great business but even to call it a split is somewhat generous to the print company. This is more like a shedding because if you look at the likely market cap of the print co it's probably going to be somewhere in the range of about 3 billion which is about half of what Rupert paid for just the Wall Street Journal a few years ago."
Faculty News

Prof. Vasant Dhar on an information market for Facebook to create value

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Excerpt from CNBC Squawk Box -- "Facebook knows more about people than anyone else. People have provided that data voluntarily so that's a tremendous resource that they can monetize."
Faculty News

Prof. Nouriel Roubini on Europe's fiscal situation

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Excerpt from Bloomberg TV -- "At some point the Germans are going to decide, do I take the credit risk of backstopping Italian and Spanish debt in exchange for some loss of national fiscal sovereignty by Italy and Spain in which case the Eurozone has a chance to survive or otherwise this thing may be dissolved in the next few months."
School News

Stern's Foundations course is listed as one of "The Best Summer Business Programs"

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Excerpt from Poets & Quants -- "A four-credit program beginning June 11th for non-business majors, Stern Foundations, the program is composed of four mini-courses in the key business disciplines of accounting, finance, management and marketing. And then there is New York City, a wide open laboratory for all things business and cultural."
Faculty News

Prof. Lawrence White on big banks making fewer loans

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Excerpt from Bloomberg -- "'It’s been clear to the bigger banks that public policy is not looking favorably upon bigness,' said Lawrence White, an economics professor at New York University’s Stern School of Business. 'If they’re shrinking, that means they’re going to be doing less stuff, including making fewer loans.'"
Faculty News

Prof. Jonathan Haidt's book, "The Righteous Mind," is highlighted

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Excerpt from The New Yorker -- "Jonathan Haidt, a professor of psychology at New York University’s business school, argues in a new book, 'The Righteous Mind,' that to understand human beings, and their politics, you need to understand that we are descended from ancestors who would not have survived if they hadn’t been very good at belonging to groups."
Faculty News

Nobel Laureate Prof. Thomas Sargent on the economic situation in Europe

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Excerpt from The New Yorker -- "[Sargent] doesn’t venture to make prescriptions for Europe. 'It seems a lot of the advice I see in the press is naïve,' he said. 'Many of the recommendations would require that institutions violate the rules and laws under which they were created and are run.' The European Central Bank is legally constrained in what it can do."
Faculty News

Prof. Lawrence White on mortgage lending at Wells Fargo

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Excerpt from Reuters -- "In the 1980s, U.S. savings-and-loans were felled by such a rate squeeze, as well as risky investments they made, said Lawrence White, an economics professor at New York University's Stern School of Business and a former savings and loans regulator. Wells can hedge this risk and has a much more diversified balance sheet than the savings-and-loans had, White said."
Faculty News

An investor sentiment index, co-developed by Prof. Jeffrey Wurgler, is featured

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Excerpt from CBS News -- "Recently, there have been several papers focusing on what is called "investor sentiment" -- the propensity of individuals to trade on "noise" and emotions rather than facts. ... Two researchers, Malcolm Baker and Jeffrey Wurgler, have constructed an investor sentiment index based on the six measures."
Faculty News

Prof. Sinan Aral & Dylan Walker a develop new method to measure influence in social networks

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Excerpt from Forbes India -- "A key differentiator of Aral’s and Walker’s study is that it avoids known biases in current methods. The jargon for this is ‘Homophily bias’. ... 'Our method solves this problem and other estimation challenges using randomization,' says Aral."
Press Releases

NYU Stern Professors Develop New Method to Measure Influence and Susceptibility in Social Networks

In a new paper, published today in Science, Sinan Aral, NYU Stern Assistant Professor of Information, Operations and Management Sciences, and his co-author Dylan Walker, a research scientist at Stern, present a new method to measure influence and susceptibility in social networks.
Faculty News

Nobel Laureate Prof. Michael Spence on Italian bond yields

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Excerpt from Bloomberg -- "The eurozone is going to stand or fall on the reform programs, Tom and Sarah, in Spain and in Italy and those reforms need time to take effect and get done and so there this issue of yield that was just discussed on the program a moment ago and basically we need intervention by the eurozone core institutions and the IMF to keep these yields under control while the reform programs work. And in order to do that they're going to have to do something that's similar to buying the bonds."
Faculty News

Prof. Sinan Aral & Dylan Walker's new method of measuring influence on social networks is featured

Excerpt from New Scientist -- "Random selection of who gets the message allowed the researchers to avoid common pitfalls in measuring influence, such as homophily bias – the principle that we tend to make friends with people like ourselves. 'If two friends adopt a product one after the other, current methods have a hard time distinguishing whether it is because of peer influence, or rather that the friends simply have similar preferences,' explains Aral."
Research Center Events

Scholars and Practitioners Convene for 5th Annual Society for Financial Econometrics Conference

The Fifth Annual Society for Financial Econometrics (SoFiE) Conference was hosted by the Oxford-Man Institute and held at the Saïd Business School at the University of Oxford this June. Bringing together academics and practitioners from around the world, the conference featured speakers from a number of leading organizations including Banque de France, NYU Stern, Harvard, Stanford and Brown.
Faculty News

An interview with Prof. Kim Schoenholtz on the Fed's actions

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Excerpt from CNBC -- "I share the chairman's view. They're not really out [of ammunition], but they're cautious about using their most powerful tools. And they should be."
Faculty News

Prof. Edward Altman on Italy and the euro's chance of survival

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Excerpt from Financial Times -- "'Now it is no more than 50-50,' [Altman] told the 2012 International Risk Management Conference in Rome. 'Italy is the fulcrum country. Italy is under the scrutiny of the markets. Italy is too large to save,' he added."
Faculty News

Research by Prof. Arun Sundararajan on India's Unique Identification initiative is cited

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Excerpt from Forbes India -- "A recent study led by Professor Arun Sundararajan of the NYU Stern School of Business showed that almost 56% of the now 200 million enrolees of the Unique Identification Authority of India (UIDAI) programme did not have portable identities before."
Faculty News

Prof. Adam Alter's research on exceptional expenses is highlighted

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Excerpt from The Globe and Mail -- "'In each instance, it seems reasonable to make a budgeting exception given the special nature of the spending and the low likelihood that a similar situation will recur any time soon,' the authors Abigail Sussman, a doctoral candidate of psychology at Princeton University, and Adam Alter, an assistant professor of marketing at New York University, wrote."
Faculty News

An op-ed by Nobel Laureate Michael Spence on restoring stability & growth in the euro zone

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Excerpt from Project Syndicate -- "After all, restoring stability and growth is only partly about reviving short-term aggregate demand. It is also about structural reform and re-balancing, which comes at a cost."
Faculty News

Prof. Edward Altman on Itay's membership in the EMU

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Excerpt from Bloomberg TV -- "I'd say the probability of Italy making it is 50/50 at best ... but its the last hope for the euro staying together."
Faculty News

Prof. Richard Sylla on the monopoly power of Moody's, S&P and Fitch Ratings

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Excerpt from Bloomberg -- "'That increased the monopoly power of Moody’s and Standard & Poor’s and Fitch,' said Richard Sylla, a financial historian at New York University’s Stern School of Business .. 'It was a bad move on the part of the government. It was a big favor to the rating agencies.'"
Faculty News

In an op-ed, NYU Stern faculty argue Europe's banks need a TARP of their own

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Excerpt from Bloomberg -- "With bank runs already under way, the immediate requirement is a euro-area Troubled Asset Relief Program like that used in the U.S. to clean up the banks during the 2008 financial crisis. The existing European Financial Stability Facility and the anticipated European Stability Mechanism aren’t up to the challenge."