January 28, 2010 at 4:52 pm
The London Times is calling economics Prof. Laurence Kotlikoff a “guru” to the Governor of the Bank of England. An ex-Reagan economic advisor, Kotlikoff is pushing his concept to turn banks into mutual funds banned from making loans not matched by cash reserves. Kotlikoff’s new book explaining it all — “Jimmy Steward is Dead: Ending the World’s Ongoing Financial Plague with Limited Purpose Banking” — will be published later this month.
Contact Laurence Kotlikoff, 617-353-4002, kotlikoff@bu.edu
January 28, 2010 at 3:21 pm
Seeking to avoid another financial meltdown, the S.E.C. issued new rules requiring money-market funds to hold more liquid assets and pay out less interest. Law Professor Tamar Frankel, a securities law authority, says the new regs are puzzling in that they'll only diminish returns on such funds that investors know such are not FDIC insured.
"Perhaps the time has come for their demise."
Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu
January 27, 2010 at 5:47 pm
The Swiss government says it may have to renegotiate that deal with the U.S. Internal Revenue Service to hand over names of thousands of tax cheats in return for ending legal proceedings against the Swiss banking giant UBS. Law Professor Daniel Berman, a former U.S. Treasury deputy international tax counsel, says the Swiss government has no choice but to comply with the agreement.
"If doing so will require a change in the domestic laws of Switzerland, then Switzerland will have to modify its laws."
Contact Daniel Berman, 617-353-3105, bermand@bu.edu
January 27, 2010 at 5:13 pm
In an unprecedented industry move, Toyota, the world's most successful automaker, temporarily suspended U.S. sales of eight models until it figures out a brake-pedal problem that sparked a recall. Former Ford Motors executive Louis Lataif, long-time dean of the School of Management, says it may help domestic manufacturers, but it premature to read too much into the situation.
"It may be that suspending sales while the technical correction is made to vehicles in dealer inventory -- and a week or so of production stoppage -- will represent a more modest financial and reputational blow than other alternatives which may have given the problem a longer life."
Contact Louis Lataif, 617-353-2668, lelataif@bu.edu
January 27, 2010 at 4:13 pm
Apple finally debuted today its much anticipated iPad tablet computer. Boston University College of Communication Professor Hyun Lee weighs in:
"There has been so much chatter about the iPad and finally it is here. Jobs delivered what was really expected -- a clean form factor, visibly consistent with the rest of the 'i' devices. This is critical in maintaining the loyal fan base and stockholders."
Contact: Hyun Lee, 617-353-5974, hyun@bu.edu
January 27, 2010 at 12:28 pm
President Obama has proposed taxing banks that have benefited from TARP bailouts and restricting banking trading activities so depositor funds are not put at risk. In a Boston Globe op-ed, Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, says it would be more effective to make too-big-to-fail institutions return every dollar of the subsidy they get by being able to borrow funds at a lower rate than less complex institutions.
"We must remind ourselves and Obama that the subsidy comes out of taxpayers’ pockets."
Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu
January 27, 2010 at 8:00 am
The Board of the Friends of the Libraries of Boston University will host an evening with renowned opera singer Grace Bumbry tonight at 5:30 in the Metcalf Ballroom (775 Commonwealth Avenue). Bumbry gained international recognition when she was cast in the German Bayreuth Festival in 1961, at age 24, and was the festival’s first ever black singer. Her performance at the festival is most remembered for its 30-minute applause and 42 curtain calls. Bumbry was also recently inducted into the Kennedy Center and is a Boston University College of Fine Arts Alumnus. The event will include a lecture and reception; tickets are $25.
January 25, 2010 at 2:55 pm
President Obama has hinted that some of his State of the Union address on Wednesday will propose some economic relief for middle-class families. But what else? Political Science Professor Graham Wilson, author of "Only in America? American Politics in Comparative Perspective," says Obama must define what his overall strategy will be moving forward.
"An expert commission on the deficit will accomplish nothing practically, but might work politically."
Contact Graham Wilson, 617-353-2540, gkwilson@bu.edu
January 25, 2010 at 9:33 am
In the wake of the great financial crisis/bailout of 2009, it's in the U.S. taxpayers' interest to again separate the "financial markets industry" from the "financial services industry." In a Reuters commentary, former deputy Comptroller of the Currency Robert Bench, now a senior fellow at the BU School of Law's Morin Center for Banking and Financial Law, says now is the time for Congress to create an industry financed "Systemic Resolution Fund" as insurance against failures at those "too-big-to-fail" financial instutions.
Contact Robert Bench, 617-353-5428, bobbench@bu.edu
January 22, 2010 at 12:14 pm
In response to a recent article in AdAge magazine reporting that the Spanish government is planning to ban some diet and beauty TV Ads before 10 PM:
"This is a terrific first step in easing the constant visual reminders of the unrealistic, body weight often portrayed in the media and viewed by young, vulnerable individuals who feel pressured to be 'thin at all health costs.' Continued monitoring and viligence of these unhealthy media messages needs to continue to avoid a shift from television advertising to Internet advertising, especially on popular social media websites that are heavily used by this age group."
