The Federal Reserve’s bank stress test is “capricious” and “arbitrary.” . . . “It’s inconsistent. It’s not transparent. It’s too volatile.” These descriptors came late last week from JPMorgan Chase CEO Jamie Dimon during his bank’s quarterly earnings call. It was a response to results of the latest, annual stress test – the Fed’s response to the 2008 financial crisis to help ensure that large, systemically important banks have sufficient capital buffers to withstand future crises.
Elon Musk’s move to abandon his $44 billion offer to buy Twitter has the company intent on forcing the deal through. Musk says the traffic of bots on the platform is prompting his decision in addition to his subsequent dispute with Twitter over how much data the social network should share toward answering his inquiries about these non-human accounts.
Consumers are feeling the effects of the highest inflation rates in decades, particularly on essentials like groceries and gas, while many big companies are reporting record profits. That dichotomy is angering a lot of Americans and public officials. But corporate greed isn’t to blame for inflation, says Maryland Smith finance professor Michael Faulkender.
COLLEGE PARK, Md. – June 30, 2022 – The Center for Financial Policy at the University of Maryland’s Robert H. Smith School of Business, and Deloitte, will present a Liquidity and Capital Risk Webinar for financial professionals, from 9-10 a.m. Wednesday, July 20, 2022.
A writing festival honoring the memory of Peter Carr, our beloved colleague, who passed away on March 1, 2022, is planned for November 10-12, 2022. At the festival, invited colleagues will present papers on the mathematical aspects of finance.
As the global economy recovers from the effects of the worst pandemic in a century, financial markets now face major challenges from several sources: the worst inflationary period in 40 years, rapidly rising oil and commodity prices and interest rates, and war in Europe. Against this backdrop, the liquidity and capital positions of financial institutions appear strong. But what are the warning signs of deterioration in firm liquidity and capital if market conditions worsen that risk managers should be monitoring over the next year or so?
Amid the highest inflation in 40 years, the “outlook for U.S. stocks in the second half of 2022 is very uncertain with at least a 50% probability of a recession in 2022 or 2023,” says Clinical Professor of Finance David Kass at the University of Maryland’s Robert H. Smith School of Business.
The longstanding ‘safe and effective’ regulatory approach to assure Americans their drug products meet a high standard of quality remains effective. However, the pharmaceutical industry needs an additional apparatus – a quality rating system – to address recent supply shortages that are attributable to deficiencies in manufacturing practices, says Maryland Smith’s Clifford Rossi, a risk management expert. Think CMNS nursing home ratings and CARFAX® car history reports, he adds.
The Securities and Exchange Commission’s recently proposed updated rules for public companies to report the climate-related impact of their businesses to the federal government and their shareholders. While the commission collects public comments on the proposal up to June 17, the University of Maryland has crafted a Climate Finance and Risk Management Bootcamp (June 23 and 30) geared to mid-career and senior professionals across industries, who increasingly weigh climate-change factors into business decisions and financial disclosures.
As climate change increasingly affects business decision-making, risk managers, financial analysts and other leaders must anticipate how weather events may impact their growth outlook, estimate how port taxes may increase because of rising sea levels, develop contingencies for supply chain disruptions and respond to the unexpected.