Georgy Chabakauri part of winning team in 4nations cup|
May 2012
Congratulations to Georgy Chabakauri (Department of Finance/FMG, LSE) who was part of a winning UK team in the 4nations cup. Georgy, along with team mate Vikrant Vig (LBS), saw of competition from France, Germany and the Netherlands in a competition that sees the most promising young scholars in financial economics go head-to-head in a day of mini seminars.
Director of FMG named as Associate Editor of Journal of Finance|
May 2012
Christopher Polk (Director of FMG, LSE) and Dr Daniel Paravisini (Department of Finance/FMG, LSE) have been named as Associate Editors of The Journal of Finance; renowned internationally as one of the most prestigious finance research journals.
They join Professor Mike Chernov (Department of Finance, LSE), already an Associate Editor, and Professor Dimitri Vayanos (FMG, LSE) who is on the Board of Directors of the American Finance Association, which publishes the Journal of Finance.
You can browse The Journal of Finance here:
http://www.afajof.org/journal/browse.asp|
FMG Review 90 published|
April 2012
The Review (published termly) includes reports of recent events hosted by the FMG as well as details on the latest discussion and special papers published by members of the FMG. You can download Review 90 here.|
Winners of the Deutsche Bank Prize 2012|
March 2012
We are pleased to announce that Hongbiao Zhao and Toni Ahnert have been awarded first prize and runner-up prize, respectively. The full announcement can be read here.
Paul Woolley Centre Scholar 2012-13 announced|
March 2012
The Paul Woolley Centre is pleased to announce that Shiyang Huang has been awarded the Paul Woolley Centre Scholarship for 2012-13. For further information about the scholarship and Shiyang click here|.
Fresh thinking on the Financial Crisis and Corporate Governance
|March 2012
Graham Mather (President of European Policy Forum) writes this about the joint FMG and Bank of England conference- Complements to Basel. |- held in February
"Is it possible at this stage, after so much ink has been spilled about the financial crisis, to come up with fresh original and compelling research and insights?
Professor Charles Goodhart's (FMG,LSE) provided a powerful affirmative answer at a fascinating conference on 28-29 February". Also receiving high praise was Kevin James (Bank of England and FMG Research Associate).
You can download the full write-up here|. Papers and slides from the conference are available here|.
FMG's 25th Anniversary event
|January 2012
In January the FMG celebrated its 25th Anniversary with a conference kindly sponsored by the LSE Annual Fund| and Department of Finance. A full review is available here|.
FMG in the press
Only the IMF can break euro logjam
The Financial Times, 17th May 2012, pg. 32
In this opinion piece Charles Goodhart (FMG, LSE) argues that the International Monetary Fund (IMF) must lead on a strategy to save Europe from its mounting financial crisis. Whether or not Greece leaves the eurozone and whether or not a growth impact is added to the fiscal treaty, the IMF should take this opportunity to be more robust than it has been in the past in dealing with Europe's problems. The full article is available to download from the Financial Times website.| Please note that you will need a subscription with the Financial Times to access the article.
Germany to Euro Zone: Do as we say, not as we do|
The Wall Street Journal, 10th May 2012
"The chief concern of Germany and the Bundesbank has always been price stability," says Charles Goodhart (FMG, LSE). By contrast, the U.S. Federal Reserve has been guided more by the severe criticism it suffered "for failing to avert the Great Depression."
The full article is available here.|
Regulators should encourage more diversity in the financial system|
voxeu.org, 12 April 2012
"Don't put all your eggs in one basket" is standard financial advice. This column, co-written by Charles Goodhart (FMG, LSE), says that financial regulators are violating that principle. It argues that financial institutions have become too similar to each other, making financial crises more likely. It proposes a regulatory approach based on relative stock market correlations that would encourage greater diversity in the financial system.
The full article is available here.|
Charles Goodhart warns of regulatory overkill|
mindfulmoney.co.uk, 29 March 2012
In forcing the world’s banks to dramatically increase their capital ratios at a time when capital is scarce, are global policymakers and regulators over-reacting to the crisis and reinforcing deflationary tendencies? And with their obsession with promoting new entrants and increased competition in the banking market, are they at risk of sowing the seeds of the next crisis? According to Charles Goodhart (FMG,LSE) the answers are yes and yes.The full article is available here.|
Bernanke says central banks should learn more about policy tools|
Bloomberg.com, 23 March 2012
Speaking at a conference, Federal Reserve Chairman Ben S. Bernanke said central bankers are working to sharpen their understanding of programs created during the financial crisis to restore liquidity and spur economic growth. A financial stability paper by Charles Goodhart (FMG, LSE) was discussed during the conference. The full article is available here.|
Goldman Roiled by Op-Ed Loses $2.2 Billion
|Bloomberg.com, 15 March 2012
Goldman Sachs Group Inc. (GS) saw $2.15 billion of its market value wiped out after an employee(Greg Smith) assailed Chief Executive Officer Lloyd C. Blankfein's management and the firm's treatment of clients. Smith's opinion piece "seems to be symptomatic of many, if not most, of the banks around the world," said Tom Kirchmaier(FMG, LSE). "It might be that Goldman, as one of the most successful ones, is also one of the most extreme."
Preventative Macroprudential policy
|voxeu.org, 29 February 2012
Banking runs are a major threat to modern finance. This column by Charles Goodhart (FMG,LSE) makes the case for preventive tools over ex post intervention. It argues for assigning responsibility and novel tools to microprudential regulators for supervising individual liquidity and capital ratios, and to central banks those tools for aggregate liquidity-risk management, with overall control switching to fiscal authorities once intervention appears to require fiscal means.
Experts react to Europe's bailout package for Greece
|washingtonpost.com, 21 February 2012
Dimitri Vayanos (PWC,LSE) comments on the bailout plan for Greece "While the bailout plan takes care of Greece's funding needs in the short run and puts Greek banks on a sounder footing, it does not offer a full solution to Greece's problems".
Timing is everything when changing the investment paradigm
|efinancialnews.com, 13 February 2012
Paul Woolley told an OECD conference of pension fund investors last week that most investment strategies boiled down to two fundamental types: momentum strategies and fair-value strategies.
Draghi's $158 Billion Free Lunch to Boost EU Bank Profits
|washpost.bloomberg.com, 13 February 2012
"In many ways this has been a masterstroke," said Charles Goodhart (FMG, LSE). "People have been asking the ECB to implement quantitative easing on a large scale without invoking the wrath of the Germans and provoking statements about helping undeserving southern Europeans. This is it."
Queries on RBS Chief's Fate
|The Wall Street Journal, 31 January 2012
But some say the rules of the game have changed. "The longer [the government] is the shareholder, the worse it is likely to be in terms of the interference in the day-to-day running of the bank," said Tom Kirchmaier, a fellow in the Financial Markets Group at the London School of Economics.
CEOs of Barclays, HSBC may keep bonuses
|bloomberg.com, 31 January 2012
Tom Kirchmaier (Corporate Governance|, FMG) is quoted "This will stop at the government controlled banks," said Tom Kirchmaier, a fellow in the Financial Markets Group at the London School of Economics. "However, the political mobbing of Hester over the last few days allowed the government-owned bank to renege on its own promises" on bonuses. "This raises a number of questions about the governability of state-owned banks, something we should be very concerned about"
New light on choice of Investment strategy
|Voxe.org, 18 January 2012
Choosing an investment strategy for an inefficient world. In this article Paul Woolley and Dimitri Vayanos argue that the optimal strategy depends on whether you are in for the short or long term.