Experience Stern | News & Events

Excerpt from Fox Business -- "'Ultimately, the idea of stress tests is to prevent another financial crisis,' said Philipp Schnabl, a professor of finance at NYU's Stern School of Business. 'A safe financial system is important to all investors.'"

Excerpt from Marketplace -- "'That seems like a very attractive return when government bonds give you 1.5 percent,' said Stijn Van Nieuwerburgh, a professor of real estate finance at New York University’s Stern School. He says investors are drawn to the U.S. because of its relatively stable economy and to Detroit for its rock-bottom real-estate prices."

Excerpt from The Wall Street Journal -- "In the end, he doesn’t think it represents an improvement over using conventional PEs to value stocks. 'This is one of the most oversold, overhyped metrics I’ve ever seen,' says Mr. Damodaran."
 

Excerpt from CNN -- "If it's going to be a hard Brexit and a distant Britain from the European Union in the future, that is going to mean very serious costs for Britain, at least in the transition, to be able to renegotiate hundreds of different treaties that the European Union has with other countries around the world."

Excerpt from The Chronicle of Philanthropy -- "Fundraisers often suggest gift amounts to help guide donor decision-making. A new study on this practice, known as anchoring, suggests that low anchors may drag down giving more than high ones bring it up. Charities must find a balance when suggesting donation amounts, says Minah Jung, an assistant professor of marketing at New York University and an author of the study."

Excerpt from WIRED -- "'It is well known that Android can be much better optimized than what it is today,' says Ghose. 'By controlling the hardware, Google can dramatically improve the reliability and consistency of the user experience on Android phones.'"

Excerpt from The Mercury News -- "For Google, the Assistant provides snapshots of users’ lives, a richer source of data than what the firm gathers by monitoring people’s Google searches, Dhar said. 'At the end of the day that’s what everyone’s competing for, they’re competing to know everything about you,' Dhar said. 'Facebook’s doing the same thing through a different channel. Facebook is killing it. It’s a space that Google really needs to be in.'"

Excerpt from Bloomberg -- "Grexit is out of the question. I think it’s out of the question for two reasons. First of all, it’s going to be a disaster for Greece. And I think by now, the Europeans also think the same way. So I don’t think it’s going to happen. At the same time, when I look at the Greek government bonds, I still see premiums that show some such probability. But I think that it’s unwarranted. I don’t think that Grexit is in the cards. If I was advising the Greek government, I would tell them exactly what I told you a minute ago: cut the state sector, cut taxation, create the right investment environment, find a way to deal with non-performing loans. There are lots and lots of non-performing loans in Greece, and there has to be some way to securitize them, to find a way so that the banks get rid of them from their books and they can actually give loans to healthy businesses."

 

Excerpt from Institutional Investor -- "IPOs aren't important in their own right; they're a way for companies to raise capital. Now companies can raise capital in alternative ways."

Excerpt from The New York Times -- "Robert Engle, an economist at New York University who was awarded the Nobel Prize for his work on volatility and capital markets, has designed a model that ranks financial institutions in terms of their systemic risk. ... Since September, the bank’s risk, calculated on the basis of its leverage, has increased sharply relative to other comparable institutions, according to the NYU gauge. 'There is just a lot of risk for Deutsche Bank right now,' Mr. Engle said. 'We have been worried about European banks for quite a while.'"
 

Excerpt from Bankrate -- "'The bank is doing its best, but it is not a strong bank, relative to other banks, relative to the environmental and regulatory conditions it faces, so it's not in a great position to withstand a run,' Smith says."

Excerpt from PolitiFact -- "[Risky mortgages], in turn, led to the 'end of a housing boom, a sharp decline in housing prices, widespread mortgage defaults, widespread mortgage securities defaults, and a lack of assets to cover the losses at nine large financial institutions -- Fannie Mae, Freddie Mac, Morgan Stanley, Merrill Lynch, Goldman Sachs, Bear Stearns, Lehman Brothers, the CitiCorp holding company, and the AIG holding company,' said Lawrence White, an economist at New York University’s Stern School of Business."

Excerpt from The New York Times -- "'Amazon is the accidental winner here,' said Scott Galloway, a professor of marketing at the Stern School of Business at New York University. 'Amazon got there first, which is superimpressive, and it has been a huge hit.'"

Excerpt from The New York Times -- "Broad equity employee ownership is exceedingly rare within the sharing economy, according to Arun Sundararajan, a professor at the New York University Stern School of Business who studies the sharing economy. ... Mr. Sundararajan sees Juno’s equity offer as a message of inclusiveness to its drivers. It’s a way of saying, 'You are one of us. You’re a part of us,' he says."

Excerpt from Reuters -- "'Calls from workers is a good system to have, but it is not a substitute for audits and checks,' [Labowitz] said. 'You need both to tackle the issues in the supply chain.'"

Excerpt from MEL -- "'Awareness is going to be positive [for businesses], but there could be other unintended consequences,' [Barasch] says. 'I just suggest that they also think about the downsides that come when you know you’re at the top of the ski slope and you’re thinking about how to get that photo.'"

Excerpt from Bloomberg View -- "What will happen to macroeconomics? Critics such as Romer have become more numerous and vocal, and the old guard is increasingly on the defensive. Consumers of research could do their part by demanding work built on more realistic assumptions, developed in keeping with normal scientific standards and having more practical relevance. If research funding agencies and central banks stopped supporting the creation of models filled with unrealistic assumptions -- what Romer calls post-real economics -- the discipline could begin healing itself."

Excerpt from The Washington Post -- "These dynamics have reminded me of Jonathan Haidt’s seminal book, 'The Righteous Mind.' Haidt, a social psychologist, used exhaustive evidence to explain that our political preferences are not the product of careful analytic reasoning. Instead, they spring from a combination of moral intuition (instinct) and a tribal affiliation with people who we believe share these instincts. We use reason, facts and analysis to affirm our gut decisions."

Excerpt from Institute of Chartered Accountants of Scotland (ICAS) -- "They’re more satisfied if they get more feedback, but feedback is hard to deliver because feedback can be seen as controlling. We often talk about constructive feedback, but delivering feedback is really difficult because it has to have this sweet spot of providing information without controlling their behaviour - you want to maintain their sense of autonomy."

Excerpt from Reuters -- "What I've observed is that the big hurdle for students, at least at a business school, is not ideas. A lot of people have exciting, interesting, great ideas. The hurdle is that most people don't know how to take that idea and start up a company. ... And so, it's often not money that we need to give people to help them and it's almost never ideas. It's the other resources: how do we help you turn your idea into a reality and bring it to market? And that's something that you can do in lots of really interesting classes."

Excerpt from Bloomberg -- "'I am big on the parallels,' said Roy Smith, the New York University academic who as a banker in 1990 anticipated Japan’s decline. Japan’s market crash 'led to a financial crisis that they never recovered from. China probably faces a debt-led financial crisis too, which could have significant consequences,' he said."

Excerpt from Bloomberg -- "A serious discussion of what the Central Bank ought to be doing, and conditional on what, is a good thing. But I think piling on in a way that threatens its independence or its integrity or so on is not helpful."

Excerpt from Bloomberg -- "In the Peabody battle, the firms’ methods are on full display. Eli Bartov, an accounting professor at New York University’s Stern School of Business, said he found it unusual for investors to lobby a company for an accounting change. 'Management alone is responsible for accounting,' he said."

Excerpt from The Wall Street Journal -- "David Yermack, a finance professor at New York University, said he wasn’t aware of any prior clawbacks this big in the financial services sector. 'If he is really responsible for this (mess), why is he still in place?' Mr. Yermack said of Mr. Stumpf."

Excerpt from Bloomberg View -- "Asset management is a second area that will probably be squeezed by the double fists of technology and regulation. As Philippon has shown, asset management, along with real estate, is one of the two sectors responsible for most of the financial industry’s growth. But that might just make it ripe for compression."