Finance

Latest Wells Fargo Fail a Temporary Setback

Wells Fargo’s recent “living will” stumble is just that, so look for the San Francisco-based company to submit a satisfactory financial crisis contingency plan to regulators the next time around, says Smith School finance professor David Kass. Wells Fargo failed to meet Federal Reserve and FDIC standards for a living will – a key requirement under Dodd-Frank, as a big bank’s plan for unwinding in a financial crisis minus taxpayer-funded bailouts. Read more...

How India's Currency Crisis Could Shape its Economy

A 500-rupee banknote. What's it like when 86 percent of the banknotes in circulation in a country are rendered worthless overnight? That's what India has been finding out. On the evening of Nov. 9, Indian Prime Minister Narendra Modi announced that, by morning, all 500 and 1,000 rupee notes would no longer be legal tender. The controversial move has sparked protests and criticism of a change too sudden and too poorly planned by the government. Up for debate now is what impact it will have on the Indian economy and on the prime minister's popularity. Read more...

Buffett to Smith Students: Master Salesmanship, Temperament

David Kass, far left, Warren Buffett, center, during a visit with Smith School students.Some 66 years ago, MBA student Warren Buffett trekked from New York to Washington, D.C., seeking career wisdom. He arrived unannounced at Geico, drawn there because it was chaired by his former professor, investing guru Benjamin Graham. It was a Saturday, but Buffett encountered a Geico executive onsite and seized the opportunity to glean several hours' worth of insight about the insurance industry and firm. A couple of weeks ago, Buffett paid that forward, sharing insights with 20 Smith School graduate students, during a meeting in Omaha, where Berkshire is headquartered. He spoke about salesmanship, temperament and what he looks for in a job candidate.Read more...

Why Is Warren Buffett Buying Airline Stocks?

An airplane silhouetted against the skyWarren Buffett once referred to airlines as an investment “death trap.” So why would his Berkshire Hathaway be placing big bets on airline shares? The Oracle of Omaha's railroad strategy offers some clues, says Smith School professor David Kass. The airline industry "has pretty much rationalized itself, similar to railroads," Kass tells Bloomberg. "They have their sort-of monopoly routes, they can price as they choose to maximize profits, and there are huge barriers to entry." Read more...

Under President Trump: Six Questions on the Economy

The question of who will be the 45th U.S. president has been answered with the upset victory of Republican Donald Trump. Now many are asking what U.S. economic policy will look like under his administration. Smith School experts will explore some of the larger economic questions facing the new administration at a pair of events next week in Washington, D.C. Here is a snapshot of some of the big issues they will discuss. Read more...

Election's Impending Market Effects

Though polls show Hillary Clinton losing ground to Donald Trump, her advantage in the betting markets continues. Ireland-based PaddyPower still shows Clinton with a 75 percent probability of winning, despite an alert from FBI director James Comey that the Clinton email investigation still has life. Smith School finance professor David Kass discusses how the 2016 U.S. presidential election would move market sectors if Clinton wins. Read more...

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