A New Check-And-Balance Order
The prime objective of the financial sector is to serve the real economy by channeling capital and liquidity to its most productive use.Professor Lim Chin & Professor Sam Ouliaris, both from Department of Business Policy dated 29 October 2008
Credit Swaps Play Vital Role Too
While credit default swaps have been much maligned in the media, they do perform a vital function in risk management and should be viewed as a positive financial innovation.Professor Duan Jin-Chuan, Cycle and Carriage Professor of Finance and Director of the NUS Risk Management Institute (RMI), and Dr Oliver Chen of RMI dated 28 October 2008
Making Sure The Right Banks Are Helped
Deposit insurance and central bank bailouts of solvent but illiquid banks are essential policy tools. But the authorities, especially in the US and Europe, need also to identify and deal with the roots of the problem – toxic assets o bank balance sheets and inadequately capitalized banks, among other things – before the financial crisis further undermines the real economy.
Asst Prof Hassan Naqvi, Department of Finance and affiliated researcher of the NUS Risk Management Institute dated 22 October 2008
S'pore An Ideal Place For International Guarantee Body
Wall Street will change as a result of this crisis. The broader trends indicate Asian economies are becoming stronger relative to the developed world. New and better ideas will emerge from Asian centres of finance.
Professor Duan Jin-Chuan, Cycle and Carriage Professor of Finance and Director of the NUS Risk Management Institute dated 21 October 2008
The Psychology Behind The Mess
Human error in judgments can cause colossal messes. We can’t change human nature, but we can provide checks and balances to ensure that egregious errors happen with great rarity.
Professor Richard Arvey, Head, Department of Management and Organisation (co-written with Prof Michael Frese, chair for Work and Organisational Psychology, University of Giessen) dated 16 October 2008
The financial crisis will inevitably become a real economic crisis. How should firms react? Professor Kulwant Singh, Deputy-Dean dated 15 October 2008
The current crisis does not mean the end of mortgage or asset securitisation. Rather, it signals a characteristic misstep most markets make in the early stages of their evolution.
Securitisation makes full economic sense. It is here to stay.
Assoc Prof Anand Srinivasan, Department of Finance dated 9 October 2008
Liquidity Shortages: Some Solid Facts
It is unclear whether the US Treasury's bailout would solve a funding liquidity problem or an insolvency problem. If it accomplished the former, that would be good. If it did the latter, that would not be good.
Professor Allaudeen Hameed, Department of Finance dated 8 October 2008
Even the most famous financial institutions do not seem to learn from their past mistakes. Why? The fundamental problem is moral hazard coupled with imperfect corporate governance.
Professor Ivan Png, Department of Business Policy dated 7 October 2008
Moral Hazard: Heads I Win, Tails You Lose
At the core of the financial crisis and ensuing mess lie two words - moral hazard.
Professor Ivan Png, Department of Business Policy dated 2 October 2008
Failures On Many Fronts
The sub-prime crisis has its roots in international payment imbalances, made worse by capital markets imprudence, which in turn became endemic because of regulatory failures.
Professor Bernard Yeung, Dean and Stephen Riady Distinguished Professor dated 1 October 2008