Oct. 13 - Prime Minister Gordon Brown says the government must be a rock of stability for British families during the credit crisis.
Britain waded in with 37 billion pounds (64 billion US dollars) of taxpayers' cash to bail out three major banks on Monday, in a move that could leave it as the main shareholder in at least two of them.
In return for the British government's money, the banks will be forced to curtail the bonuses that many believe encouraged a risk-taking culture that precipitated the global financial crisis. They will also have to scrap dividends.
Under the UK plan, the Royal Bank of Scotland will boost its capital by 20 billion pounds, issuing 15 billion pounds' worth of shares underwritten by the state, and 5 billion pounds in preference shares directly taken by the government.
Monday, October 13, 2008
Thursday, October 9, 2008
Financial Market Regulation and Practices Panel 2 - Richard Fuld, CEO of Lehman Brothers (FULL VERSION)
Richard Fuld, Jr., board chairman and chief executive officer of Lehman Brothers Holdings and Lehman Brothers, testified about the bankruptcy of the company. Topics included his role at Lehman Brothers, allegations of fraud, and his compensation from the company.
The House Oversight and Government Reform Committee held the first in a series of oversight hearings on the regulatory mistakes and financial excesses that led to the market breakdown on Wall Street, and on the impact of the crisis on financial markets and the U.S. economy. This session focused on the causes and effects of the bankruptcy of Lehman Brothers
The House Oversight and Government Reform Committee held the first in a series of oversight hearings on the regulatory mistakes and financial excesses that led to the market breakdown on Wall Street, and on the impact of the crisis on financial markets and the U.S. economy. This session focused on the causes and effects of the bankruptcy of Lehman Brothers
Financial Market Regulation and Practices Panel 1 - Full Version
Experts in economics, regulation, and corporate governance testified on the causes and effects of the bankruptcy of Lehman Brothers. Topics included excessive CEO compensation, bad judgment by executives, relaxation of regulation, easy access to credit, excessive leveraging by investment banks, and the assumption that housing values would continue to rise.
The House Oversight and Government Reform Committee held the first in a series of oversight hearings on the regulatory mistakes and financial excesses that led to the market breakdown on Wall Street, and on the impact of the crisis on financial markets and the U.S. economy. This session focused on the causes and effects of the bankruptcy of Lehman Brothers
The House Oversight and Government Reform Committee held the first in a series of oversight hearings on the regulatory mistakes and financial excesses that led to the market breakdown on Wall Street, and on the impact of the crisis on financial markets and the U.S. economy. This session focused on the causes and effects of the bankruptcy of Lehman Brothers
Lehman Brothers' Dick Fuld Questioned by US House of Representatives on Compensation
10/6 Lehman Bankruptcy
Richard Fuld (Chairman & CEO)
Clip #8
Van Hollen (D-MD)
Richard Fuld (Chairman & CEO)
Clip #8
Van Hollen (D-MD)
Wednesday, October 8, 2008
Lehman Brothers' CEO Dick Fuld Testifies Before US House of Representatives
Oct. 6 - Richard Fuld, who was chief executive of bankrupt investment bank Lehman Brothers, testifies before the U.S. House of Representatives panel on oversight and government reform.
He tells the committee, "I take full responsibility" for Lehman's demise. Thus far, the panel members are questioning Fuld on his "compensation package" at Lehman.
SPEAKERS:
# Rep. Henry Waxman (D-CA), U.S. House of Representatives Oversight and Governmental Reform Committee Chairman
# Richard Fuld, Lehman Brothers Chief Executive
He tells the committee, "I take full responsibility" for Lehman's demise. Thus far, the panel members are questioning Fuld on his "compensation package" at Lehman.
SPEAKERS:
# Rep. Henry Waxman (D-CA), U.S. House of Representatives Oversight and Governmental Reform Committee Chairman
# Richard Fuld, Lehman Brothers Chief Executive
US Treasury Secretary Paulson Calls for Global Action
As Treasury Secretary Paulson prepares to host the G7, he is calling for intensified global cooperation to stabilize financial markets.
Paulson recited the numerous measures that members of the G7 -- the U.S., Britain, Canada, France, Germany, Italy and Japan -- and others have taken to try to halt plunging stock prices and rebuild confidence, but said more was needed.
Paulson recited the numerous measures that members of the G7 -- the U.S., Britain, Canada, France, Germany, Italy and Japan -- and others have taken to try to halt plunging stock prices and rebuild confidence, but said more was needed.
Second 2008 United States Presidential Debate
This is the second presidential debate between Senator John McCain and Senator Barack Obama.
First 2008 United States Presidential Debate
This is a video of the first United States Presidential Debate between Senator Barack Obama and Senator John McCain.
Tuesday, October 7, 2008
Thursday, October 2, 2008
Crisis on Wall Street
09/23/2008
Location: Princeton University Woodrow Wilson School
Panelists:
Hyun Shin, Professor of Economics and associate chair of the Department of Economics; Markus Brunnermeier, Professor of Economics;
Harrison Hong, Professor in Finance;
Paul Krugman, professor of economics and international affairs;
Alan Blinder, Professor of Economics and Public Affairs and co‐director of the Center for Economic Policy Studies.
Wednesday, September 24, 2008
Simulation of Commodity Prices
The Java applet below is a simulation of the behavior of commodity prices according to a geometric brownian motion model where the transition of the price from one point in time to the next is a continuous-time stochastic process satisfying the following stochastic differential equation:
For an arbitrary initial price So the equation has the solution:
which is a random variable with value
and variance
where mu is the drift, sigma is the volatility. This solution can be verified according to Ito's Lemma.
For an arbitrary initial price So the equation has the solution:
which is a random variable with value and variance
where mu is the drift, sigma is the volatility. This solution can be verified according to Ito's Lemma.
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