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Sep 02, 2015
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After August marked the Dow’s worst month, September opened with U.S. stocks plummeting upon fresh data showing China manufacturing contracting. The New York Stock Exchange subsequently invoked a rarely used rule designed to quell the turbulence. Smith School experts Anil K. Gupta, Michael Faulkender and Kristen Fanarakis add context....

Aug 25, 2015
World Class Faculty & Research
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What is the likelihood that the Fed will raise interest rates in September? William Longbrake, Smith School Executive in Residence and senior policy advisor at the school’s Center for Financial Policy, shares insights and assesses the risks of the various policy options. "The odds (of a rate hike) have fallen further in recent days as turmoil has engulfed global financial markets," he says....

Aug 25, 2015
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What are the risks of not raising U.S. interest rates? Kristen Fanarakis, assistant director of the Center for Financial Policy at the Smith School, shares insights. "Extended periods of low interest rates can create distortions in financial markets and excessive risk taking," she says. "I think that is the Fed's biggest concern, along with the worry that with rates already near zero they aren't well equipped to...

Aug 25, 2015
World Class Faculty & Research
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Even before the stock market correction that began on Friday, Smith School professor Albert “Pete” Kyle argued against interest rate hikes in the United States. "Today's plunging stock markets make it even less likely that the Fed will raise interest rates," he said Monday. "The Fed's justification for probably not raising rates will likely be to promote stable economic growth in a benign inflationary environment, not...

Aug 19, 2015
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Think of China like Walmart and the country’s recent currency devaluation like a price-slashing sale. “Devaluing your currency is a classic way to undercut competitors on price,” says Kristen Fanarakis, assistant director at the Smith School's Center for Financial Policy. “When you put your currency ‘on sale,’ the products you export become cheaper for other countries to buy."...

Aug 14, 2015
World Class Faculty & Research
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High-frequency traders provide a useful service but rig the system when they extract tolls from investors, Smith School professor Albert "Pete" Kyle said this week during a financial regulation conference in Australia. "They are like a troll under a bridge who charges travelers something extra when they cross to the other side," Kyle has said. Debate about high-frequency trading heated up prior to the...

Jul 29, 2015
World Class Faculty & Research
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Is "quarterly capitalism" a problem for the American economy? Hillary Clinton hopes to make the alleged short-term focus of corporations an issue in the 2016 presidential campaign. In a speech at New York University on Friday, she offered several proposals that would "reward farsighted investors and companies that seek to build up value." Professor Phillip L. Swagel from the Smith School's Center for Financial...

Jul 28, 2015
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On its face, Bank of America delegating stress test oversight to its human resources chief is a "head scratcher," Smith School professor Clifford Rossi tells American Banker. As part of a larger leadership shakeup, the megabank recently appointed its global head of HR Andrea Smith to a newly created chief administrative officer position. The role encompasses global corporate strategy and includes managing BofA’s Dodd-...

Jul 01, 2015
World Class Faculty & Research
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Bill Longbrake, executive-in-residence at the Smith School's Center for Financial Policy, lays out the big issues for Greece as the country enters the end game of its long-running financial drama. "There are times when, even though there might be a logical solution from an economic and financial point of view, you can't get there because of political constraints," Longbrake says....

Jun 11, 2015
Experiential / Reality-based Learning
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Smith Undergrads’ ‘Woodstock for Capitalists’ Experience includes ‘Buffett v. Mayweather’

This year’s Berkshire Hathaway Inc., annual shareholder meeting coincided with the conglomerate’s 50-year anniversary under Chairman Warren Buffett  – and the Floyd Mayweather- Manny Pacquiao boxing showdown.

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