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STRATEGICISSUESFACINGINVESTMENTBANKS
FALL2016
STEVENG.MANDIS,PHD(Professor)
E-mail:[email protected]
OfficeHours:Uponrequest.E-mailforanappointment.Preferredmeansofcommunicationisviaemail.Studentscanexpectaresponsewithin12to24hours.Studentsarewelcometoemailtheprofessoratanytime.
REQUIREDCOURSEMATERIALS
1. ReadingPacket2. Recentandrelevantarticles(tobesentbyProfessor)3. Mandis,StevenG.2013.WhatHappenedtoGoldmanSachs?:AnInsider’sStoryofOrganizationalDrift
andItsUnintendedConsequences
REQUIREDPREREQUISITESANDCONNECTIONTOTHECORE
Thelearninginthiscoursewillutilize,buildon,andextendconceptscoveredinthefollowingcorecourses:
CoreCourse ConnectionwithCoreCORPORATEFINANCE 1. Risk
2. FirmValuationModelDECISIONMODELS 1. FundamentalConceptsofDecisionMakingFINANCIALACCOUNTING 1. FinancialStatementsofBanksGLOBALECONOMICENVIRONMENT
1. RoleofFinancialMarketsintheEconomy
LEADERSHIPDEVELOPMENT 1. Ethics,Decision-Making,Persuasion,andTeamsSTRATEGYFORMULATION
1. Trade-Offs,Value-Added,CompetingFirms,StrategicAnalysis,Diversification,andCross-Selling
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COURSEDESCRIPTION
Thecourseisdesignedtohelpthoseinterestinginevaluatingthefinancialindustrywhichisundergoingrapidchange(e.g.,astudentinterestedinmanagementconsultingorprofessionalservices);workinginfinancialservicesorinvestmentbanking(butwantsabroaderunderstandingofthevariousdivisionsanddepartmentsandhowtheyinterrelate);orlearninggenerallymoreaboutthefinancialsystem.
Eachclasssessionfocusesononecriticalstrategicissuefacingaglobalinvestmentbank.Ingeneral,casediscussionswillbeledbytheteacheroraguestspeaker.Theclasstopics/strategicissuesoftenvarydependingonthestudents’interestsandtopicalissues.
Topics
1stclassisanoverviewofclassandexpectations.Noworkisnecessary.Itwouldbehelpfultowatchthesevideos.Assets/Liabilities.Banking1and2.https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/banking-and-money/v/banking-1
AnOverviewofInvestmentBanks.Thefirsttwoclassestypicallygothroughtheorganizationandstructureofauniversalandinvestmentbank.Typically,weusethereallifeexampleofJPMorgan.Typicallywecoverwhybanksareorganizedthewaytheyare.JPMorganpresentationfromInvestorDay:https://www.jpmorganchase.com/corporate/investor-relations/document/firm_overview_investor_day_2016.pdf
DifferentBanks’Strategies,Leadership/CrisisandCross-Selling.
CorporateCulture.Whatisit?Whyisitimportant?Whatisorganizationaldrift.Whatpressuresanorganization?WewillreadsomepartsofWhatHappenedtoGoldmanSachs.TalentOrientedorProcessOriented?SeeEndofThisDocumentforClassDiscussionQuestions.
TheFinancialCrisis.Wetypicallyreadtwocasesaboutthefinancialcrisis.Whydidithappen?TheimportanceofConfidence.LeverageandRisk.InterestRateRisk.CreditRisk.
IncomeStatementsandBalanceSheets.WewillreviewIncomeStatements/PressreleasesofVariousBanks.Whatisthebiggestcost?Whataboutlegalcosts?Coststocomplywithregulations?Technologycosts?DVA.VAR.
Valuation.Howdoyouvaluebanks.Whatdoesthismeanforstrategy?
CompensationandPromotion.Wewillreadacasestudyaboutabankerupforpromotion.WewillreviewtheProxystatementsofvariousbanks.ResearchwhatyoucanforeachbankasifyouwereHR.Whatwouldyouadviseforthebonuspoolthisyear??SeeEndofThisDocumentforClassDiscussionQuestions.
RiskManagement.SeeEndofThisDocumentforClassDiscussionQuestions.
Legal/Regulatory.GlassSteagall,SarbanesOxley,GrammLeachBileytoDoddFranktoVolkerRule.SeeEndofThisDocumentforClassDiscussionQuestions.
Strategy.Wouldyouratherrunatechnologydriven,processdriven,talentdriven,industry/productdriven,orglobalbank?Howwouldyoudifferentiate?
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Thefocusesareonlearningandlearningpracticalinformationandtoolstohelpastudent’scareer.
COURSEOBJECTIVES
Studentswilllearnhowtodesignandimplementacoherentstrategytoaddressacriticalstrategicissuefacinganinvestmentbankthroughlectures,discussions,andcaseanalyses.
Studentswilllearnhowtomoreeffectivelycontributetotheirfirmsandunderstandcomplexchallengesfacingseniormanagement.
ASSIGNMENTS
Studentsareexpectedtoreadthecasesandmaterialsandbepreparedtopresentordiscusskeythemes.Typically,thisisoneortwocasesperclassandoneortwoshortarticles.Studentsaregroupedtogetherinteamstorepresent“theirbank”whichcouldbeGoldmanSachs,MorganStanley,Citigroup,JPMorgan,WellsFargo,BofA,Lazard,Evercore,PJT,etc.
MIDTERMMEMO(25%):Studentsareexpectedtoturninatwo-to-threepagememotoafictionalCEOaboutastrategictopic.Asuccessfulmemotypicallyanswersthefollowingquestions:Whatistheissue/challengeandbackground(whataretheregulatory,organizational,competitive,ortechnologicalissuescausingtheproblem/issue?);whyshouldtheCEOcare/whyisthetopicimportant?;whatisyourrecommendedcourseofaction?;costs?;resourcesrequired?;timing?(andpotentialconsequences?);howwillyoujudgesuccess?/whatmetrics?Thepapershouldprovideideasfromreadingsanddiscussionsaswellasdata/evidencetosupportone’sanswer/opinion.Ifyoucan’tfinddata,figureouthowyoucouldballparkthedata,andthenuseit.Sincemostexecutivesprefermemostobeshortandtothepoint,theshortmemoforcesthestudenttofocusonthequestion,theanswerandthereasonswhythestudenthastheanswer/opinion.ThisisTypeBAssignment.Youcandiscussthememosandreceiveoutsidehelp,butyoumustsubmityourownworkandconclusionsandthegradeisindividual.
MIDTERMQUESTIONS/MIDTERMEXAM(25%):Studentswillberequiredtogenerateatotalof10questionsandanswersaboutthecoursecontentcovereduptoacertainpointinthecourse,basedontheirreadingsandnotes.Agoodbalancewouldbeatleasttwoquestionspereachclass’materials.Thesequestionsarequestionsthestudentfeelscould/wouldbeappropriateforamidtermexam.Thequestionitselfshouldhighlighttheunderstandingofakeyconceptoftheclassandshouldbeessentiallyleadingtoaveryobviousanswer.Theanswersshouldbeveryobviousandshort,oneortwowords.Forexample,thequestionsshouldnotbe“DefineXYZ?”Averythoughtfuldefinitionthatincludesthecontextofwhytheconcept/wordisimportantandwasraisedordiscussedinclassshouldbeinthequestion,andthentheanswershouldbetheword/two-threewordconcept.Thereshouldnotbeanytrueorfalseormultiple-choicequestions.Questions(andtheiranswers)willbesubmittedtotheprofessorinaMSWorddocumentwithaheaderofthestudent’snameandthepagenumber.ThesequestionswillbeusedaspartoftheMidtermGroupExamdescribedbelow.Thisisanindividualassignment.
Thequestionsrequirethestudenttothinkofthe10thingshe/shefoundinteresting/mostimportantintheclassfromreadingsanddiscussion.Inordertosucceed,thestudentmustdrawoutwhatisimportantandbalancethemfromthevariouslearningmethodsincludingreadingsanddiscussion.Thisallowstheprofessortoseewhatisresonatingwithstudentsandisitmatchingthelearningobjectives.True/Falseormultiple-choicequestionsareNOTacceptable.
SomesamplequestionsandhowIevaluatethem:1.Q.Whatisthefoundationoftheentirefinancialsystem?
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A.Confidence.Myevaluation:Thisisfine/great.Wediscussedthisinclass.Itisanimportantconcept.Onewordanswerthatisobvious.B+/A-Anotherway:Q.WhatisthefoundationoftheentirefinancialsystemthatGSalsotriedtoaddresswhenittookmoneyfromBuffetandalsowhenPaulsontriedtoaddressthecrisiswithhisBazooka?A.ConfidenceThisisverygood/excellent.Broughtinsomeotherconcepts/ideasraisedinclassandreadings.A-/A2.Q.WhatkindoftradingwastheprimetargetoftheVolkerRule?A.Proprietarytrading.Myevaluation:Thisisfine/great.Wediscussthisinclass.ITisanimportantconcept.Onewordanswerthatisobvious,B+/A-Anotherway:Qitwasbelievedthatafunctioningcommercialbankingsystemisessentialtothestabilityofthefinancialsystemanditwasunsafeforbankstoengageinhigh-riskspeculationwhichcreatedunacceptablelevelsofsystemicrisk.ThereforeThisRule,whichisapartofDoddFrank,specificallyprohibitsabankorinstitutionthatownsabankfromengaginginproprietarytrading(excepttreasuriesandmunicipalbonds),andfromowningorinvestinginahedgefundorprivateequityfundabove3%ofTierOneCapital.ThisrulewhichhasbeencomparedandcontrastedtoGlassSteagallisalsoadifficultRuletointerpretbecausewhatisproprietaryornotissubjecttosomelevelofsubjectivityandsomehavearguedisareasonwhysometopproprietarytradersfromlargebanksleft?A.VolkerRuleMyevaluation:Thisisexcellent.ItshowsanexcellentunderstandingoftheVolkerRule,whyitwascreatedandconsequences.Grade:AMidtermGroupExam:Studentswillbebrokenintosmallgroups.Eachgroupwillelectacaptaintotaketheircollective10questionseachandsynthesizethegroupquestionbankintoagrouplistofthetop10questions.Thelistshouldincludethebestquestionsthegrouphasposedintheaggregateandremoveanyduplicates.Thegrouplistshouldhaveaheaderwitheveryteammembers’nameandthegroupname/numberonthetopofeverypage.Thegroupquestionsshouldlistthenameofthepersoncontributingthequestion,aswellasthequestionandtheanswer.FortheMidtermGroupExam,thegroupswillaskeachotherthequestionsinagameshowstyle,whereteamswillearnpointsforthecorrectanswers.Theteamisgradedbasedonthequalityoftheirgroupquestionsselectedandifthequestionscoveredtheessentialconceptsandtheircorrectanswersdiscussedinclassinthelive,oral,andopen-bookexamasagroup.Makesureeachquestionforthegroupreallyhighlightsakeyimportantconceptandshowsanunderstandingoftheconcept/ideabeyondsomethingbasicandhasaeasilyidentifiableonewordanswer.
Thepurposeoftheclassistolearn.Learningcollectivelyandinafun,engaging,competitive,andcollaborativewayensuresthatallstudentsareexposedtokeyquestionsandanswerswithinthecontentareathatmatchthecourse’slearningobjectives.Thepurposeofthisassignmentistoensureeveryoneislearningthemostimportantmaterialbeforemovingontothesecondhalfoftheclass.
FinalQuestionsandExam(25%):SimilartotheMidtermQuestionsassignment,studentswillberequiredtogenerateatotalof15questionsandanswersabouttheentirecoursecontent,basedontheirreadingsandnotes.Five(5)willbefromthefirsthalfoftheclass.Youcanusefivefromyourprevioustenorusenewonesbasedonthemidterm.Thesequestionsarequestionsthestudentfeelscould/wouldbeappropriateforafinalexam.ThequestionswillbesubmittedtotheprofessorinaMSWorddocumentwithaheaderofthestudent’snameandthepagenumber.Thisisanindividualassignment.StudentshavetheoptionofparticipatingintheFinalExamonthelastdayofclass,orsubmittingtheFinalPaper/Presentation.TheformatoftheFinalExamissimilartotheMidtermGroupExaminthatgroupswillaskeachotherthequestionsinagameshowstyle,andteamswillearnpointsforthecorrectanswers.Theteamisgradedbasedontheirperformanceintheliveexamasagroup.
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IfastudentwillmissthefinalorpreferstowriteapaperversusparticipateintheQ&Aandexam,thenthestudentcanre-writeorwriteanewstrategicissuepaperORwriteareviewofachapterinWhatHappenedtoGoldmanSachs.
Participation(25%):Studentswillberequiredtoattendclass,contributetoclassdiscussion,participateinthegroupactivitiesandsharerelevantresourceswitheachotherpertainingtosportsmanagement.Contributingtoclassdiscussionsmeansenhancingthequalityoftheclassexperienceforyourselfandothers.Itinvolvesmakingrelevant,usefulcomments,orposingpertinentquestions,inclearandsuccinctlanguage.Tomakesurewehaveinterestingclassdiscussion,oftenstudentswillberequiredtoanswerquestionsandsendthemtotheprofessorinadvanceofclass.Somesamplequestionsareattheendofthedocument.Theresponsescanbebulletpointsandaregradedasoneofthreegrades:good,okornotgood/didnotturnin.
Youcanmissoneclassanditwillnotimpactyourgrade–aslongasyouemailtheprofessorinadvance.Ifyoumissasecondclass,andyoudonotgetapprovalinadvance(whichinnotnormallyunreasonablywithheld),thenitwillimpactyourgrade.
InordertoavoidambiguitythatmayleadtounintentionalviolationsoftheHonorCode,thedescriptiontypesforassignmentshavebeenstandardized.Theyarespecifiedinthetablebelow.
Type Designation Discussion of concepts
Preparation of submission Grade
A Group/group Permitted with
designated group*
By the group Same grade for each member of the group
B
Group/individual Permitted Individual
(No sharing of any portion of the submission)
Individual
C Individual/individual None of any kind Individual Individual D (An optional category to be defined in detail by the individual faculty member)
*The designated group can either be an assigned study group or a self-selected one.
METHODOFEVALUATION
Thefocusesareonlearningandlearningpracticalinformationandtoolstohelpastudent’scareer.
Thereisnocurve.
Participation 25%Questions/Mid-Term 25%Memo 25%Questions/FinalExam 25%
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CLASSROOMNORMSANDEXPECTATIONS
Classattendanceisapartofparticipation.Ifyoucan’tmakeclassorwillbelateorneedtoleaveearly,justemailme.Itypicallygiveastudentonefreepassonaclassandonefreepassonbeinglateorleavingearly.Iamparticularlysensitivetopromptnessandattendancewhenwehaveguestspeakers.
Youcaneatanddrinkinclass,aslongasitisdiscreteanddoesnotdisrupttheclassoryourneighbors.Sopleasebepolite,thoughtful,andrespectful.Askthepeoplearoundyouifyouaredisturbingthemornot.
Laptopsandcheckingdevicesformessagesarepermittedaslongasitisdiscreteanddoesnotdisrupttheclassoryourneighbors.Sopleasebepolite,thoughtful,andrespectful.IfIhavetospeaktoyouaboutabusingthisprivilege,thenitwillhurtyourparticipationgrade.
Pleaserespectthecontributionsandtimeofothersintheclass.
Pleasebringyournamecardandplaceitfrontofyou.
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JPMorgan4QPresentation
First,mapoutwhatarethebusinessunits(whatdotheydo)andwhataretherevenuesofeach.Whatisthebiggestbusiness?Youmayneedtorefertothishttps://www.jpmorganchase.com/content/dam/jpmorganchase/en/investor/includes/document/4Q2015_Earnings_Presentation.pdf
WhichgrouphashighestROE?Highestoverheadratio?
JPMorganInvestorDayPresentation
https://www.jpmorganchase.com/corporate/investor-relations/document/firm_overview_investor_day_2016.pdf
Page8–whatarethebusinesses?
Onpage1JPMhighlights4keyratios.Whatarethey?Whatdotheymean?Whyaretheyimportant?
Onpage3.JPMgivesEPSYoYgrowth.WhatwasY0Yrevenuegrowth?Whatcausedearningsgrowth?WhichbankhasthehighestROE(Surprise!)?
Page5–whatisbeinghighlightedandwhy?
Page15–NCOs–whatisit?Whyimportant?
Page19–WhatisCCARstress?GSIBsurcharge?HowdoesJPMgettotheminimumlevel?
Page20ISJPMcapitalgoingupordownovertime?
Page21–WhatisROE?WhichareahasthehighestROE?
Page24–Whytalkaboutrisingrates?
Page27–Howisincomegrowing?Whatisdrivingit?
Page33–HowdoesJPMfinanceitself?Whatislargestfundingsource?
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QuestionsonCorporateCulture/WhatHappenedtoGoldmanSachs?Whatwastheacademicquestionposedinthebook?Chapter1Whatwasthehypothesis?Chapter1Whatwastheconclusion?Chapter1WhatwouldGS’responsebe?Chapter1Whatevidencewastherethattherewasahigherthanlegalline?pg50WhatwerethecharacteristicsofthepeopleGShired?51Whatistheproblemofnostalgia?Whatweretheadvantagesofpartnershipstructurepg70,71Whatwasthepowerofthepartnershipprize?pg75Whatisasocialnetworkoftrust?81Whatisproductivedissonance83Whatisfinancialinterdependence?89Whatisdrift?-pg93-116Whatarethesigns-skimchapter5andpick2or3thatinterestyouWhatweretheconsequencesofgoingpublic-skimchapter6andpick2or3173-180,whichexampledoyoulikeandwhy?From267-269,which2or3changesdoyouthinkweremostinterestingGiveonepieceofdata/evidencetheculturechanged?EgManagementCommitteenumbersatIPOandnow?
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CompensationandPromotion
1. Wouldyoupromotehim?YesorNoandwhy?2. Ifyouarenotgoingtopromotehim,whatwould/couldyoudo?3. Ifhewasyourfriend,whatwouldbeyourcareeradviceafterthevariouspossibilities?4. Doyou/didyouhaveabosslikehisboss?5. Washedoomedtofail?
WhatarethesalariesandbonusesoftheCEO,CFO,#2/Presidentanda4thperson?
Aretheysimilar?
Dotheyindicateanythingaboutculture/priorities?
Whatmakesupcompensation?Whatwentintothedecision?
Howmuchiscashversusstickversusother?Whatisthevestingofthestock?
Whatistheaveragecompperpersonatyourassignedfirm?
http://www.ibankinginsider.com/on-the-job/investment-banking-salary-total-pay/
http://www.forbes.com/sites/kenrapoza/2013/03/13/how-much-do-wall-streeters-really-earn/#d5d59117f08a
http://www.mergersandinquisitions.com/boutiques-vs-bulge-brackets/
http://news.efinancialcareers.com/us-en/152549/working-for-mckinsey-bain-and-boston-consulting-vs-goldman-jpm-and-morgan-stanley/
http://www.ft.com/cms/s/0/d99d271c-5545-11e5-8642-453585f2cfcd.html#axzz4Dm0088GA
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Regulation
SarbanesOxley
JUL29,2012@01:56PM3
Sarbanes-Oxley10YearsLater:BoardsAreStilltheProblemhttp://www.forbes.com/sites/frederickallen/2012/07/29/sarbanes-oxley-10-years-later-boards-are-still-the-problem/
WhatisSarbanesOxley?
Whywasitimplemented?
Whatarethespecificchanges?
Whatistheauthorsuggestingaschanges?Doyouagree?
RepealofGlassSteagall
November11,20153:52pm
Wewerewrongaboutuniversalbanking
JohnReed
http://www.ft.com/cms/s/0/255fafee-8872-11e5-90de-f44762bf9896.html#axzz3rHpSOgws
ABigBanker’sBelatedChangeofHeart
ByJEFFMADRICKJULY29,2012
http://www.nytimes.com/2012/07/30/opinion/a-big-bankers-belated-apology.html?_r=0
WhatisG-S?
What2thingswerewrongaccordingtoReed?
DoyouthinkG-Sshouldberepealed?Why?
Dodd-Frank
TheDodd-Frankact
Toobignottofail
Flawsintheconfused,bloatedlawpassedintheaftermathofAmerica’sfinancialcrisisbecomeevermoreapparent
Feb18th2012|NEWYORK
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http://www.economist.com/node/21547784
HouseVotestoRepealDodd-FrankProvision
ByERICLIPTONdatepublishedOCTOBER30,20137:03PMhttp://dealbook.nytimes.com/2013/10/30/house-passes-bill-on-derivatives/
HowmanypageswastheBankingAct?Dodd-Frank?
Whataretheproblemswithit?
Whatarethecosts?
HowinvolvedwasCitigroupindraftingaHousebilltorepealaD-Fprovision?
VOLKERRULE
Q&A:TheVolckerRule
BySCOTTPATTERSON
June13,20122:40p.m.ET
http://www.wsj.com/articles/SB10001424052702303822204577464661833507038
VolckerRuleCostsTalliedasU.S.RegulatorsPressDeadline
JesseHamiltonandCheyenneHopkins
September30,2013—
http://www.bloomberg.com/news/articles/2013-09-30/volcker-rule-costs-tallied-as-u-s-regulators-press-deadline
VolckerRuleWillCostBanksUpto$4.3Billion,OCCSays
JesseHamilton
March21,2014
http://www.bloomberg.com/news/articles/2014-03-20/volcker-rule-will-cost-banks-up-to-4-3-billion-occ-says
WhatistheVolkerRule?
Whyisitcontroversial?
Whatisthecost?
BASEL
BaselIIIQ&A
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TheGuardian
http://www.theguardian.com/business/2010/sep/13/basel-iii-q-and-a
WhatareBASEL1,2and3norms?Whatarethebasicdifferencesbetweenthesenorms?
https://www.quora.com/What-are-BASEL-1-2-and-3-norms-What-are-the-basic-differences-between-these-norms
BaselIIIandEuropeanbanking-McKinsey&Company
https://www.mckinsey.com/.../26_Basel_III_and_...
McKinsey&Company
Nov1,2010-BaselIIIwillhavesignificantimpactontheEuropeanbankingsector.....paper,wereviewthechallengesofimplementation,especiallythe...
WhatisBasel?Whatisitsrole?
Whatareproblemswitht?
Whatdid3trytoovercome?
Whatistheimpact?
Whatarebanks’response?
SURCHARGE
Twenty-EightBanksQualifyforBasel’sToo-Big-to-FailSurcharge
JimBrunsden
July19,2011—11:29AMEDT
UpdatedonJuly19,2011—7:00PM
http://www.bloomberg.com/news/articles/2011-07-19/basel-says-28-systemic-banks-would-qualify-for-capital-surcharge
HowDoTheLargestU.S.BanksFareInTermsOfBaselIIICompliance?
http://www.forbes.com/sites/greatspeculations/2014/09/11/how-do-the-largest-u-s-banks-fare-in-terms-of-basel-iii-compliance/
What’sthesurcharge?Onwhatandwhy?
WhatareCoCos?Aretheyallowedtobeincluded?
TOOBIGTOFAIL
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AndrewGHaldane17January2013
http://www.voxeu.org/article/have-we-solved-too-big-fail
FedApproves'TooBigToFail'Surcharges
ByDunstanPrialPublishedJuly20,201
http://www.foxbusiness.com/economy-policy/2015/07/20/fed-to-approve-too-big-to-fail-surcharges/
Brainard:FedShouldConsiderIncludingCapitalSurchargeinStressTestsOfficialsareweighingstrictercapitalstandardforbiggestU.S.banks
ByVICTORIAMCGRANEAndRYANTRACY
UpdatedJuly9,201512:21p.m.EThttp://www.wsj.com/articles/feds-brainard-u-s-at-pivotal-moment-in-effort-to-end-too-big-to-fail-1436450428
Havewesolvedtoobigtofail?
WhatdoesHaldinethink?What’stheproblem?
Willsurchargesbeinstresstests?Shouldtheybe?
STRESSTESTS
Stresstests:Banksneed$75billion
Resultsoflong-awaitedbankstresstestsrevealthat10outof19bankstestedneedtoraisenewcapital.BankofAmericamustraise$33.9billion.
ByDavidEllis,CNNMoney.comstaffwriter
LastUpdated:May8,2009:
http://money.cnn.com/2009/05/07/news/companies/stress_test_announcement/index.htm?postversion=2009050717
U.S.BanksPassStressTests,SomeWithanAsterisk
ByPETEREAVISMARCH11,2015
http://www.nytimes.com/2015/03/12/business/dealbook/us-banks-pass-stress-tests-but-not-without-some-checkmarks.html
Whatarestresstests?
Whyhavestresstests?
Howdidthestresstestsgoin2009?
Howabout2015?
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CULTURE
SPEECH
EndingTooBigtoFail
11/07/2013
November7,2013
WilliamC.Dudley,PresidentandChiefExecutiveOfficer
http://www.newyorkfed.org/newsevents/speeches/2013/dud131107.html
WhatItWillTaketoChangetheCultureofWallStreet
StevenG.MandisOCTOBER24,2014
https://hbr.org/2014/10/what-it-will-take-to-change-the-culture-of-wall-street
Culture,NotLeverage,MadeWallStreetRiskier
StevenG.MandisOCTOBER11,2013
https://hbr.org/2013/10/culture-not-leverage-made-wall-street-riskier
HowimportantisCulture?
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RiskManagementThereisaHBSValueatRiskcasestudyintheCaseBook.Readpages201-204oftheGSBook.andthesearticles:GSVaRReachesRecordhttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=anh9S6AJxcbYMSFICCtradershttp://news.efinancialcareers.com/us-en/205719/why-morgan-stanleys-ficc-traders-look-more-talented-than-jpms-and-goldman-sachss/Thequestionsare:WhatisVaR?WhatisthetypicalreportingofVaR?Whatistheproblemwithjustrelyingonit?HowbigofdeclineinVaR?
