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Aug 23, 2016
World Class Faculty & Research
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Executives at pharmaceutical company Mylan have come under attack for giving themselves raises while boosting the price of a lifesaving injection device by more than 500 percent over the past nine years. Smith School finance professor David Kass compares the situation to a 2015 scandal, when hedge fund manager and pharmaceutical CEO Martin Shkreli raised the price of the AIDS drug Daraprim from $13.50 a pill to $750...

Aug 04, 2016
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Democrats and Republicans are calling to reinstate a version of the Glass-Steagall Act, which from 1933 to 1999 separated investment banking (underwriting, issuing and distributing financial instruments like stocks and bonds) from commercial banking (deposit-taking and lending) activities. Are legislators about to break up the big banks? Don't count on it, say professors Cliff Rossi and Phillip L. Swagel...

Jul 19, 2016
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Told big bank failure would trigger a flood of bankruptcies and economic calamity, U.S. taxpayers collectively paid billions of dollars to bail out large institutions from the 2008 financial crisis. Despite passing Dodd-Frank legislation to mitigate a future bailout, Congress is on the verge of amending the U.S. bankruptcy code to make bankruptcy feasible for larger banks — more so than when Lehman Brothers’s 2008 bankruptcy...

Jul 14, 2016
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Starting July 6, the clock tower outside Van Munching Hall transformed into a Pokémon Go landmark — great news for Smith School players who have downloaded the gaming app that lets them use their phones to find magical creatures in the real world. By the time most people heard about the craze sometime this week, short-term traders around the world already had absorbed the information and responded....

Jun 15, 2016
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“Divorces are tough,” says Smith School economist Peter Morici. But Britain nonetheless should break from the “shackles” of its union to a Europe economy locked in ruinous cycles of debt crises and high unemployment. "The EU suffers from chronic slow growth thanks to a smothering bureaucracy and single currency," Morici says. Other Smith School professors foresee challenges if United Kingdom voters opt to separate...

Jun 01, 2016
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Since the global financial crisis, “active” fund managers — stock pickers looking to beat the market — have lost ground to their “passive“ counterparts, as investors shun stock pickers amid concerns over bad performance and high fees. Smith School finance professor Russell Wermers compares the situation to the shark-prey relationship. "We need both in the water to make the world go round properly," he says....

May 02, 2016
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Leading academics, bankers and regulators gathered at the Smith School for a conference honoring the Smith School’s Albert “Pete” Kyle — specifically, the thirtieth anniversary of the publication of Kyle’s seminal 1985 paper “Continuous Auctions and Insider Trading.” Co-sponsored by the Smith School’s Center for Financial Policy and UBS, the conference included discussion of the paper’s influence, tributes to...

Mar 28, 2016
World Class Faculty & Research
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Central bankers in Japan and the Europe Union are at their wits' end in trying to figure how to generate demand and stave off deflation. Both banks have dropped interest rates into negative territory, encouraging spending by making saving literally costly. Yet the publics of the two economic regions have reacted differently. Each is unhappy for a different reason. Smith School professor Haluk Ünal explains...

Mar 16, 2016
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Does the stock market encourage corporate conformity? Yes, according to new research from the Smith School. Managers have an incentive to ape the strategies of other companies in order to increase the informational value of their own stock price, according to a new paper co-authored by finance professor Laurent Frésard. Read more...

Mar 03, 2016
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The debate over whether Great Britain should exit the E.U. — to "Brexit" or not to "Brexit"? — is rippling outward from Europe into the world's major financial markets. Proponents of an exit think that Britain can follow the model of Switzerland, negotiating good trade deals with E.U. nations individually. But the Smith School's Albert "Pete" Kyle thinks the the E.U. will be inclined to make things tougher than that for...

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