Social and Behavioral Sciences Commons^™

Lessons Learned: Chris Ricciardi, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

Chris Ricciardi was a CDO pioneer who built the structured products units at CS First Boston and Merrill Lynch before moving to the asset management side. Ricciardi began his career structuring novel fixed-income securities at Prudential. At CS First Boston and Merrill, he catapulted each investment bank’s lagging unit into the top of the league tables for CDO (collateralized debt obligation) issuance. He was CEO of Cohen & Co. from 2006 to 2011, when he left to co-found investment management firm Mead Park Management. A graduate of the University of Richmond with an MBA from the Wharton School of the …

Lessons Learned: Eric Kolchinsky, Steven H. Kasoff, Matthew A. Lieber

Journal of Financial Crises

Eric Kolchinsky served as managing director of ratings for ABS CDOs (asset-backed security collateralized debt obligations) at Moody’s Investor Services from 2005 to 2007. Kolchinsky started his career in structured finance with stints at Goldman Sachs and Merrill Lynch. He joined Moody’s in 2000 as vice president for credit. In 2007, after Kolchinsky raised questions concerning the ratings of new deals in light of subprime downgrades, Moody’s removed him from his client-facing position. Kolchinsky supervised methodology for structured finance valuations at Moody’s Analytics for two years, before Moody’s suspended him altogether in 2009. Separated from Moody’s, Kolchinsky testified before Congress …

Lessons Learned: Stephen King, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

Stephen King started his career in finance at Bankers Trust in 1997 as a computer scientist with a business degree. He worked on structured credit transactions when credit derivatives were just being invented. In 2005, King joined Barclays’ structured credit group, where he managed a CDO (collateralized debt obligation) correlation desk that was different from standard dealer CDO units. In 2009, he launched C12 Capital Management to relieve Barclays of distressed subprime positions. Presently, King finances and builds luxury hotels as founder and CEO of Sardis Developments. This Lessons Learned summary is based on an interview with King.

Lessons Learned: Sohail Khan, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

Sohail Khan was managing director of fixed-income sales at Citigroup from 2005–09. Khan started his finance career in 1996, after completing his MBA at Lahore University of Management Sciences (LUMS). Khan gained broad experience in product structuring and sales of credit derivatives at Citigroup. As managing director during the subprime securitization boom and bust, he was involved with institutional sales of asset-backed securities (ABS) including collateralized debt obligations (CDOs); his clients were hedge funds, structured vehicles, and institutional buyers. In 2009, Khan left Citigroup to co-found StormHarbour Securities, a boutique investment bank he has headed since as managing principal. This …

Lessons Learned: Steven H. Kasoff, Matthew A. Lieber

Journal of Financial Crises

Steve Kasoff was employed at Elliott Management Corporation from 2003 until 2020. His responsibilities centered on developing the structured products and real estate groups at Elliott. He was made senior portfolio manager, a member of the firm’s management committee, and equity partner. Kasoff has extensive experience in the origination, trading, and management of structured products such as collateralized debt obligations (CDOs) and mortgage-backed securities, including earlier posts at Deutsche Bank, Merrill Lynch, and Lehman Brothers. He earned his BA in economics from Yale College and his MBA in finance from the Wharton School of the University of Pennsylvania. In 2016, …

Lessons Learned: James Finkel, Steven H. Kasoff, Matthew A. Lieber

Journal of Financial Crises

A Wall Street veteran specializing in structured credit transactions, Jim Finkel was co-founder and director of the structured credit asset management firm Dynamic Credit Partners (DCP) from 2003 to 2009. Finkel started his career as a securities lawyer for the international law firm Cadwalader, Wickersham & Taft LLP, before moving over to the banking side in 1992. He specialized in mortgage-backed securities and collateralized loan obligations (CLOs) for several firms, including Bear Stearns and Deutsche Bank, where he headed the London-based CLO group. In 2003, Finkel returned to New York to launch and run DCP. In 2010, he joined financial …

Anatomy Of A Trade: The Making Of A Subprime Cdo, Steven H. Kasoff

Journal of Financial Crises

This article presents a short story, a sketch in eight parts of a single fictitious subprime collateralized debt obligation (CDO) transaction. The story is informed by expert interviews, documentary research, and the author’s firsthand experience.

A Special Project: Inside The Cdo Machine, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

In this issue of the Journal of Financial Crisis, we feature Inside the CDO Machine—a special undertaking recently completed under the auspices of the Yale Program on Financial Stability Lessons Learned Oral History Project by Steven H. Kasoff, a Yale School of Management Fellow and former equity partner and head of real estate and structured products investments at the Elliott Management Corp., a global hedge fund. For the project, Kasoff undertook a series of interviews with industry professionals to focus on one of the critical derivatives products of the Global Financial Crisis (GFC), collateralized debt obligations (CDOs), and how they …

Wall Street’S Subprime Debacle: Firsthand Accounts From Inside The Cdo Machine, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

The observations, perceptions, and actions of participants in the subprime markets remain poorly documented and incompletely understood. Seeking to deepen our understanding, this study has produced seven interview summaries and one article telling the story of a hypothetical CDO deal. This article is organized in four parts. First, it presents our research questions and methods in relation to the existing knowledge on the topic. Second, it describes what we think are the study’s main contributions. Third, it previews the Lessons Learned summaries and interviews from each of the participants. And last, it identifies what we believe are some of the …

The Rescue Of The Us Auto Industry, Module Z:Overview, Rosalind Z. Wiggins, Greg Feldberg, Alexander Nye, Andrew Metrick

Journal of Financial Crises

In the fall of 2008, credit markets tightened amid a broader economic downturn that severely impacted the US auto industry, especially the three largest domestic manufacturers, General Motors (GM), Ford Motors, and Chrysler. The companies requested assistance from the government in a bid to stay afloat, but Congress declined to authorize funding. The Bush administration, however, provided bridge loans to GM and Chrysler under the Auto Industry Finance Program (AIFP), funded through the Troubled Assets Relief Program (TARP), to sustain them until the Obama administration was in place. Within months, the Obama administration decided that a speedy bankruptcy would be …

The Rescue Of The Us Auto Industry, Module G: The Auto Warranty Commitment Program, Benjamin Henken

Journal of Financial Crises

On March 30, 2009, President Barack Obama announced a plan for government-funded protection of warranties on new vehicles sold by General Motors (GM) and Chrysler while the companies underwent restructuring. The initiative, which would become known as the Auto Warranty Commitment Program (AWCP), was intended to bolster consumer confidence by alleviating a major risk—the loss of warranty benefits—to consumers associated with the companies’ potential bankruptcies. Under the AWCP, GM and Chrysler established independent special purpose vehicles (SPVs) to which they transferred a combination of their own money along with funding they received from Treasury in the form of a loan. …

The Rescue Of The Us Auto Industry, Module F: Auto Supplier Support Program, Riki Matsumoto

Journal of Financial Crises

The Global Financial Crisis that began in 2007 intensified the decade-long malaise of two of the largest auto manufacturers in the US, General Motors and Chrysler. Their possible collapse was deemed to pose a systemic risk by the United States government. In response, the Department of the Treasury made efforts to provide support to the automotive industry through the Automotive Industry Financing Program (AIFP). As US auto parts suppliers experienced deteriorated automotive markets, disrupted manufacturer operations, and stressed credit markets, the Treasury announced the Auto Supplier Support Program (ASSP) on March 19, 2009, as an auxiliary program to the overall …

The Rescue Of The Us Auto Industry, Module E: Emergency Assistance For Chrysler Financial, Alexander Nye

Journal of Financial Crises

In the fall of 2008, due to the confluence of the Global Financial Crisis and years of structural decline in the auto industry, Chrysler was nearing bankruptcy. Chrysler’s related finance company, Chrysler Financial, was also in dire straits. On December 19, 2008, President Bush announced the Automotive Industry Financing Program and that the US Treasury would extend Chrysler a $4 billion Bridge Loan to give the company time to prepare a viable restructuring plan. Two weeks later, the Treasury arranged $1.5 billion in low-interest financing for Chrysler Financial to fund the securitization of new consumer car loans and the facility …

The Rescue Of The Us Auto Industry, Module C: Restructuring Chrysler Through Bankruptcy, Alexander Nye

Journal of Financial Crises

In late 2008, due to the confluence of the financial crisis and years of structural decline in the auto industry, Chrysler was nearing bankruptcy. The US Treasury provided Chrysler’s owner, Chrysler Holding, with a $4 billion bridge loan and Chrysler’s related finance company, Chrysler Financial, with a $1.5 billion financing program under the Troubled Assets Relief Program (TARP). The government-led restructuring through bankruptcy involved the commitment of roughly $5 billion in debtor-in-possession (DIP) loans from the US Treasury and the Canadian government, under which the US Treasury ultimately lent $1.89 billion, using TARP funds, and Canada lent about $1 billion, …

The Rescue Of The Us Auto Industry, Module D: Emergency Assistance To Ally Financial (Formerly Gmac), Riki Matsumoto, Kaleb B. Nygaard

Journal of Financial Crises

In 2008, GMAC was a $200 billion company providing financing to General Motors customers. As the Global Financial Crisis entered a critical stage in early 2008, GMAC’s funding strategy and liquidity position were adversely affected by the significant disruption in credit markets and the broader economic downturn. This reduced access to financing, which impacted GMAC’s ability to provide automotive wholesale inventory and retail financing to General Motors and Chrysler. In late 2008 and early 2009 GM and Chrysler underwent a complex restructuring process. To restore liquidity to GMAC’s auto finance business, the Federal Reserve agreed to expedite GMAC’s conversion to …

The Rescue Of The Us Auto Industry, Module B: Restructuring General Motors Through Bankruptcy, Kaleb B. Nygaard

Journal of Financial Crises

As the Global Financial Crisis worsened in 2008, credit markets tightened and a broader economic downturn developed, hitting the auto industry particularly hard. The crisis intensified a decade-long decline of the largest US auto manufacturers. Because of its size and importance to the economy, the US government decided to provide assistance to General Motors (GM) to sustain it while it developed plans for its long-term viability. Congress declined to authorize funding for the auto manufacturers, but in December 2008, Treasury provided a bridge loan to GM under the Troubled Assets Relief Program (TARP) to sustain the company until the Obama …

The Rescue Of The Us Auto Industry, Module A: Automotive Bridge Loans, Alexander Nye

Journal of Financial Crises

In 2008, in the midst of the Global Financial Crisis, America’s Big Three automakers neared their breaking point. Two of them, General Motors (GM) and Chrysler, asked Congress for funding to prevent uncontrolled bankruptcies. Policymakers realized these uncontrolled bankruptcies would damage the manufacturing sector. Congress considered but failed to pass a framework conditioning short-term financing on the companies’ producing acceptable restructuring plans. With the companies warning that they could not survive the coming presidential transition, on December 19, 2008, President George W. Bush announced the Automotive Industry Financing Program (AIFP) under the authority of the Emergency Economic Stability Act (EESA) …

Broad-Based Capital Injection Programs, June Rhee, Junko Oguri, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

This paper surveys 36 broad-based capital injection (BBCI) programs and attempts to identify some best (and worst) practices. We argue that it is crucial to distinguish between programs implemented during acute (“panic”) and chronic (“debt overhang”) phases of a crisis, where the goals of program design should be different. In an acute phase, programs should be designed to influence the behavior of bank counterparties, while in chronic phases, the focus should be on bank behavior itself. With this framing, we identify seven themes to guide program design, and provide many illustrative examples for the policymaker’s tool kit.

Shocking: Using Machine Learning Techniques To Nowcast Lightning Strikes From Station Level Data, Michael D. Broussard

LSU Master's Theses

Lightning strikes are incredibly common and potentially hazardous. Lightning can lead to loss of life, property damage, or can trigger other hazardous events like wildfires. They are also the result of incredibly complex physical processes in the atmosphere, making it challenging to predict strikes. However, given the extensive data and robust analytical techniques available, machine learning methods could be used to establish data relationships between lightning strikes and ground-level atmospheric measurements. Such a model could be used to provide any surface-based weather station with a method for predicting incoming strikes, making it easier to avoid the potentially hazardous effects of …

Assessing The Factors Affecting The Use Of Web 2.0 Tools In Selected Iran Medical University Libraries, Sirous Panahi, Aala Abtin, Shahram Sedghi

Library Philosophy and Practice (e-journal)

Background: Capabilities offered by Web 2.0 tools have attracted many academic libraries. The present study aimed to identify factors affecting the use of Web 2.0 tools in selected Iran medical university libraries including Iran, Tehran, and Shahid Beheshti universities of medical sciences.

Methods: The study was conducted through a survey distributed among librarians working in the libraries of Iran, Tehran, and Shahid Beheshti universities of medical sciences. The data was collected using a questionnaire which examined the factors affecting the use of Web 2.0 technologies in terms of three general categories: factors related to librarians, users, tools/technology, and organizations. In …

When Growth Is Not Enough: Inequality, Economic Gains, And Executive Approval, Ryan E. Carlin, Timothy Hellwig, Gregory J. Love, Cecilia Martínez-Gallardo, Matthew M. Singer

Faculty and Student Publications

A robust economy is assumed to bolster leaders' standing. This ignores how benefits of growth are distributed. Extending the partisan models of economic voting, we theorize executives are more likely rewarded when gains from growth go to their constituents. Analyses of presidential approval in 18 Latin American countries support our pro-constituency model of accountability. When economic inequality is high, growth concentrates among the rich, and approval of right-of-center presidents is higher. Leftist presidents benefit from growth when gains are more equally distributed. Further analyses show growth and inequality inform perceptions of personal finances differently based on wealth, providing a micro-mechanism …

Click Restraint For Critical Online Source Evaluation, Andrea Baer, Daniel G. Kipnis

Libraries Scholarship

We turn to the Internet everyday for information about little things like when a local store opens, as well as about much bigger issues like how to manage critical health conditions or who to vote for. The search results we see first aren’t necessarily the most relevant; they may appear at the top of a list because that site has been visited often or because a company or organization has figured out how to “game the system” through “search engine optimization” (SEO). So how, in an effort to better understand an issue and to find trustworthy information, do we and …

Adapting To Survive, Building To Thrive: A Single Case Study Of A Housing Nonprofit In Rural Kentucky, Amber Post

Student Research Symposium

Rural nonprofits work to combat social and economic challenges their communities face by providing vital support and resources. Rural nonprofits provide jobs, support local businesses, help meet the basic needs of individuals, and advocate for vulnerable populations. Organizations face challenges when operating in rural areas including difficulty finding funding, retaining qualified employees, lack of resources, and limited opportunities for forming partnerships. In this single qualitative case study, the HOMES, a housing nonprofit, impact on social and economic development of Letcher County, Kentucky was examined. HOMES has utilized creative methods to bolster the economy of Letcher County including providing energy-efficient rental …

New York Camp Econometrics Xvi Program, Center For Policy Research

Camp Econometrics-Programs

No abstract provided.

Is Parental Encouragement (As Measured By Piccolo) During Toddlerhood Correlated With High-Risk Behaviors In 5Th Grade? Are These Correlations Different For First-Born Children Versus Children With Older Siblings?, Jocelyn Meyers

Student Research Symposium

Children need support through healthy, positive relationships with adults, but they also need room to grow, learn, and slowly gain independence. The PICCOLO User's guide defines Encouragement as an “Active support of exploration, effort, skills, initiative, curiosity, creativity, and play” (Roggman, et.al., 2013). Parental support and encouragement of autonomy is correlated with better development of self-regulation and brain development, and can even influence executive functioning and parent-child relationships (Bernier, et al., 2010). Studies have already shown that proper encouragement in early childhood is linked to healthy development, Ispa, et al. (2004) found that maternal intrusiveness or lack of encouragement and …

A Content And Sentiment Analysis Of Facebook Posts Regarding Wild Horse Management, Libbie Anderson

Student Research Symposium

Controversy surrounding wild horse populations and public lands use has directly affected 177 herd management areas over 26.9 million acres across 10 western states, and grasped the attention of thousands across the nation. As a topic that impacts agriculture, public land use policy, and sparks public conversation, there is a need to understand how wild horse management is being communicated and perceived. The purpose of this study was to better understand public sentiment and current conversations on Facebook regarding wild horse management practices, including fertility control, roundups, and adoption. This was done by conducting a quantitative content analysis and social …

The Need For Gender Neutral Spaces, Ainsley Statham

Student Research Symposium

An ongoing problem all over the country are universities and the lack of gender-neutral spaces. Students all over are asking for safe and welcoming spaces so they do not have to fear for their safety while on campus. Over the last 10 years, universities have started to adapt their already built spaces to accommodate the needs of their students and faculty by making them gender neutral. I started to research what universities in the country are going above and beyond to make sure their students are safe in contrast to the not-so-great campuses that choose to ignore their students needs. …

Would Free College Tuition Detriment Or Benefit Our Future Society?, Alexee Bambrough

Student Research Symposium

College tuition costs are becoming increasingly more expensive. My research was to understand if eliminating college tuition would benefit or detriment our future society. In conducting my research I used library databases to find primary and secondary sources. I focused heavily on statistics and first hand experiences. From these sources I was able to discover that the college tuition costs are contributing to large amounts of student debt, bigger gaps in equality, and a less educated society. It can be argued that eliminating college tuition costs would overall benefit our future society.

Attribution Of Discrimination To The Self In Racial Minorities And Adolescent Females, Natalie Rust

Student Research Symposium

Discrimination among marginalized groups has been shown to affect individuals’ view of themselves (Yang & Gao, 2019; Strehlow et al., 2021; Rivera, 2021). This study seeks to observe self-attribution rates in minoritized groups, specifically in people of color and adolescent females. From a Qualtrics survey, researchers observed adolescents’ experiences with and attributions of discrimination. Respondents had the opportunity to attribute discrimination as resulting from race/ethnicity, gender, sexual orientation, weight, immigration status, or “other”. For adolescents who chose “other”, they were allowed to describe an additional attribution in their own words. Specifically for this study, only participants who chose “other” as …

Rural Nonprofit Fundraising Capacity: What Can We Learn From Current Practices?, Janice Snow

Student Research Symposium

Rural nonprofits in the U.S. strive to maintain and improve the quality of life in rural communities, but in many cases are lacking the resources to be effective. Rural nonprofits often have larger services areas while operating with less funding. Little is known about rural nonprofit fundraising and grant writing capacity because previous research has focused on nonprofits in general or urban nonprofits. With differences in organization size, community demographics, and geographical contextual issues, rural nonprofits may need to use different strategies to achieve financial health and stability. Further, rural communities in the U.S. were differentially affected by the COVID-19 …