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Beginning in the summer 2007 the Federal Reserve (the Fed) deployed numerous conventional and innovative programs to address the credit crisis occurring in the interbank lending markets that was beginning to affect the broader financial markets and threaten the economy at large. Two of those...
Persistent link: https://www.econbiz.de/10013000256
In the wake of the global financial crisis (GFC), many nations embarked on reform to the financial regulatory system. This reform, unprecedented in its scope, touched virtually every part of the financial system in the United States and Western Europe. This article summarizes the key reforms,...
Persistent link: https://www.econbiz.de/10012912588
As a global financial service provider, JPMorgan Chase (JPM) is supervised by banking regulatory agencies in different countries. Bruno Iksil, the derivatives trader primarily responsible for the $6 billion trading loss in 2012, was based in JPM's London office. This office was regulated both by...
Persistent link: https://www.econbiz.de/10013025070
to accomplish this task. Until the 1980s, regulation had been based largely on discretion and judgment. In the wake of … represented a synthesis of the dueling approaches to capital regulation, however some argued that the new standards led to an … explosion in the complexity of financial regulation. This case explores the history of the efforts to regulate bank capital that …
Persistent link: https://www.econbiz.de/10013026593
We analyze institutional investors' preferences for stocks and the implications that these preferences have for stock-market prices and returns. We find that -- a category including all managers with greater than $100 million under discretionary control -- have nearly doubled their share of the...
Persistent link: https://www.econbiz.de/10005830017
What happened during the financial crisis of 2007-2008? Understanding the dynamics of the financial crisis requires determining the timing of important events. We document the crisis chronology econometrically based on market prices. The empirical chronology is based on locating the dates of...
Persistent link: https://www.econbiz.de/10013021544
This paper analyzes the equity-portfolio recommendations made by investment newsletters. The dataset spans 16 years, is free ofsurvivorship and back-fill biases, and includes the recommendations of 145 different newsletters. Overall, there is no significant evidence of superior stock-picking...
Persistent link: https://www.econbiz.de/10012787049
This paper analyzes institutional investors' demand for stock characteristics and the implications of this demand for stock prices and returns. We find that quot;largequot; institutional investors nearly doubled their share of the stock market from 1980 to 1996. Overall, this compositional shift...
Persistent link: https://www.econbiz.de/10012722282
This paper analyzes the economics of the private equity fund compensation. We build a novel model to estimate the expected revenue to fund managers as a function of their investor contracts. In particular, we evaluate the present value of the fair-value test (FVT) carried interest scheme, which...
Persistent link: https://www.econbiz.de/10009359901
We review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i)...
Persistent link: https://www.econbiz.de/10008776837