Archive for January 6th, 2014

How Iceland bankers tried to trick the regulators as crisis struck in 2008..

January 6, 2014

A very interesting piece by Friðrik Már Baldursson (Reykjavik University) and , Richard Portes (LBS).

There has been this huge criticism on how no banker has been punished for the mis-deeds that led to the recent crisis. Apparently, Iceland is a lone example where senior bankers were thrown to the gallows. What they did was very interesting (and shocking) as they tried to use tricks to postpone financial troubles. As the crisis struck share prices of banks tumbled. It seems these banks then gave money to the owners/investors to buy the shares and boost prices!:

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Economics at the Federal Reserve Banks — NY, Boston and Minneapolis

January 6, 2014

Nice speeches by the Presidents of the three Regional Feds – New York, Boston and Minneapolis. All three were invited recently to the Annual American Association meeting – 2014.

Minneapolis Fed explains how economists have different jobs in Fed vs Universities:

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Did IPO hamper Moody’s ratings?

January 6, 2014

This is a really interesting paper by Simi Kedia and Xing Zhou ( both of Rutgers University) and Shivaram Rajgopal (Emory University).

The authors say that Moody’s ratings seem to become more lax post its IPO in 2000. They seem to be stricter with respect to ratings before the IPO. S&P which remains privately hold is not as much affected:

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