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
Stock prices are setting new records but could easily charge much higher, says Smith School economist Peter Morici. “The U.S. economy is growing again — about 2.5 percent in the second quarter and going forward — and corporate profits are rising again.” Post-Brexit, the dollar strengthened against foreign currencies, “but overall it remains well below levels recorded earlier this year and last,”
Rio de Janeiro’s acting governor Francisco Dornelles recently warned that the Rio Summer Olympics are headed to a “big failure.” He also called his state’s health care system “calamitous” and said his government’s policy of paying workers’ salaries in installments “is a form of slave labor.” Smith School marketing professors Hank Boyd and Roland Rust suggest better ways to manage a crisis
The Federal Aviation Administration’s initial, comprehensive set of rules for commercial drones will open the floodgates to tens of thousands of unmanned aircraft systems in U.S. airspace. But these flights still won’t include Amazon Prime flying a package to your front door. However, the new rules include “ample leeway,” Smith School marketing professor P.K. Kannan says.
Online services such as OpenTable make it easy for consumers to make restaurant reservations — and not show up. But higher-end restaurants are fighting back, and the trend is global. Smith School marketing professor Janet Wagner says the lack of human interaction in online reservation systems lets consumers cancel without feeling responsible for the consequences.
About the University of Maryland's Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and part-time MBA, executive MBA, online MBA, specialty masters, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.