BU Now » School of Management

Goldman executives questioned

Dick Taffe — Thu, 01 Jul 2010 21:05:43 +0000

The Congressionally appointed Financial Crisis Inquiry Commission exploring the 2008 crash questioned executives from Goldman Sachs, the world’s most profitable bank, about how much it makes trading derivatives — those complex financial bets that helped bring down the economy. Goldman Chief Financial Officer David Viniar said they had no way of determining its derivatives data separately from trading in cash securities. But Mark Williams, a former Federal Reserve bank examiner who teaches finance in the School of Management and is author of “Uncontrolled Risk” about the fall of Lehman Brothers, says he doesn’t buy it.

“For Goldman’s CFO to go before the Financial Crisis Inquiry Commission and claim he doesn’t know what Goldman makes in derivatives trading is the equivalent of a major league pitcher not knowing his ERA. Such a claim is shocking given how lucrative and central derivatives trading is to Goldman’s core business model.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

Kenneth W. Freeman named Dean of Boston University School of Management

Jenny Mackintosh — Tue, 22 Jun 2010 16:19:28 +0000

Kenneth W. Freeman, currently a partner in the investment firm Kohlberg Kravis Roberts & Co. (KKR), today was named the Allen Questrom Professor and Dean of Boston University’s School of Management (SMG), announced BU President Robert A. Brown. Freeman succeeds Louis E. Lataif who has helmed the school for 19 years. Read the full news release on Freeman’s appointment to SMG.

BU Today recently sat down with Freeman, where he revealed his intentions to build on the existing strengths of the School of Management, and to listen and learn carefully:

Media inquiries may be directed to Tom Testa.

Financial regulatory reform crunch time

Dick Taffe — Mon, 24 May 2010 16:01:50 +0000

Capitol Hill negotiators from the House and Senate committees dealing with financial regulatory reform are getting down to the details of working out differences between the bills passed in respective chambers, with Democrats holding the majority votes in both. Former Federal Reserve Bank examiner Mark Williams, who teaches finance in the School of Management and is author of “Uncontrolled Risk” about the fall of Lehman Brothers, says the Fed simply isn’t equipped to take on any new oversight role over banks — as the Senate bill dictates.

“At the Fed, bank examiners continue to be underpaid, lack advanced training in the ways of Wall Street, and are saddled with risk-measurement systems that lag the Street.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

Congress close to financial reg reform

Dick Taffe — Fri, 21 May 2010 20:40:49 +0000

The most extensive overhaul of financial regulations since the 1930s has cleared its big hurdle in the U.S. Senate and how can head to President Obama for a signature after a conference committee works out remaining differences between the House and Senate versions. But former Federal Reserve Bank examiner Mark Williams, who teaches finance in the School of Management and is author of “Uncontrolled Risk” about the fall of Lehman Brothers, cautions that only four of the world’s 30 global financial giants that could take down the world’s economy are covered under this reform bill — yet the problems are globally systemic.

“The U.S. is now in the position to lead again but will need to encourage other nations to follow. Until global uniformity is reached, high systemic risk will remain.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

German trading ban roils markets

Dick Taffe — Wed, 19 May 2010 19:29:18 +0000

Because no one followed suit, Germany’s unlateral ban on “naked” short selling of European government bonds - speculative bets that prices will fall on borrowed assets which then can be sold back to the lender with the speculator pocketing the difference –rocked global markets. Mark Williams, who teaches finance at the BU School of Management and is author of “Uncontrolled Risk” about the lessons to be learned from the fall of Lehman Brothers, says this shows that systemic risk remains high in our global financial market.

“Short sellers are a symptom not the cause of our fragile financial system. The action that will be most effective is coordinated efforts by G-20 powers to enact a global financial reform. Efforts being made in the U.S. will not solve the systemic risk that Greece has reminded us still exists.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

iPad rival from Verizon/Google

Dick Taffe — Wed, 12 May 2010 16:53:06 +0000

Verizon and Google are teaming to develop a tablet computer in their combined effort to catch up with Apple‘s iPad and host AT&T. School of Management Professor N. Venkat Venkatraman, head of the Information Systems Department, is researching competition in business network and says this is a new form of competition — not between firms but between pairs or clusters of firms.

“The real question is whether it will be a Google-branded tablet like NexusOne or Android-OS running on multiple variations of touchscreen tablets manufactured by many different hardware vendors.”

Contact N. Venkat Venkatraman, 617-353-7117, venkat@bu.edu

Greece’s debt crisis grows

Dick Taffe — Wed, 05 May 2010 20:20:33 +0000

As nationwide workers’ strikes continued and deadly riots erupted in Athens over austerity measures invoked to deal with Greece’s ongoing debt crisis, fears grew that the situation may adversely impact the global banking system. Mark Williams, author of “Uncontrolled Risk” about the fall of Lehman Brothers who teaches finance in the School of Management, says the risk will remain high until meaningful financial reform is enacted globally.

“If the stunning collapse of world markets after the Lehman Brothers bankruptcy in September 2008 was the wakeup call [about uncontrolled risk in the banking system], the unraveling of Greece and potentially other sovereigns (Spain, Portugal, Italy) is the latest alarm bell.”

Contact Mark Williams, 617-358-2789, williams@bu.edu

Google buys 3-D software maker Bump

Dick Taffe — Mon, 03 May 2010 19:54:20 +0000

Continuing its furious buying spree, Google has acquired Bump Technologies, maker of software that makes computer desktops appear to be 3-D. This latest acquisition by the world’s most popular search engine, says School of Management Professor N. Venkat Venkatraman, just intensifies the competitive battle between Google and Apple.

“Looks like Google and Apple may be defining the battle for user interface when, just a few years back, we would have expected Microsoft to do so.”

Contact N. Venkat Venkatraman, 617-353-7117, venkat@bu.edu

Creative Writing Program hosts annual Faculty Reading

Jennifer McDonald — Tue, 09 Feb 2010 11:00:23 +0000

The Creative Writing Program will be hosting its annual Faculty Reading tonight at 7:30 PM in the School of Management Auditorium (595 Commonwealth Avenue, Boston). The readers will include: former US Poets Laureate Robert Pinsky and Louise Glück; novelist and Director of the Program, Leslie Epstein; poet and translator David Ferry; novelist Allegra Goodman and Ha Jin; playwright Melinda Lopez; and poets Rosanna Warren and William Delman. This event is free and open to the public. For more information, call 617-353-2510, or visit http://www.bu.edu/writing.

Getting into b-school

Dick Taffe — Tue, 28 Jul 2009 17:59:12 +0000

Is the GMAT the most important criterion? Personal essays? Letters of recommendation? School of Management Director of Graduate Admissions Christopher Storer discusses the business-school admissions process in a BusinessWeek Q&A.

“Our first job in admissions is to ensure that people are going to be successful in the classroom.”

Contact Christopher Storer, 617-353-6791, cstorer@bu.edu