This paper by New York University’s Jonas Prager outlines the major changes in the financial structure as well as the focal events that characterised the 2007-2008 global financial crisis and considers the evidence for the crucial role played by misaligned incentives.
Misaligned incentives, bank mismanagement, and troubling policy implications
banks, financial crisis, Goldman Sachs, incentives, misalignment, New York University, short termism
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Aabar Investments, an investment company backed by an Abu Dhabi sovereign wealth fund, has become the first external investor in commercial space carrier Virgin Galactic, buying a 32 per cent stake for $280 million. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
The alpha from active funds management was a massive -1.2 per cent before fees for US funds in 2008, a figure eight times below the average of 15 bps over 18 years, according to research by CEM Benchmarking. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Institutional investors should be looking to garner alpha from income-generating investments, rather than growth, as the “new normal” dictates that return expectations will be equal to about nominal GDP, according to managing director, Pimco, Paul McCulley. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Pension funds no longer view the emerging markets as a tactical play, instead considering the region a strategic allocation within their portfolios. Murray Davey, managing director and chief investment officer – global emerging markets at UK-based Rexiter tells Kristen Paech why. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
The $14.7 billion Mubadala Development of Abu Dhabi is believed to be slating co-investments totalling $1 billion in the Malaysian energy, real estate and hospitality industries with a newly formed sovereign wealth fund from the Asian nation. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
The Investors’ Working Group (IWG) has urged the US Government to set up an independent authority to monitor the activities and risk exposures of dominant financial institutions and advise regulators on ways to mitigate current and emerging risks in the financial system. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
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