Legendary investor Michael Steinhardt, known to many as the father of the modern hedge fund era, offers his perspective on the Fed and advice for today’s tumultuous market.
Wednesday, February 6, 2008
What Went Wrong at Citi and Merrill
Economist Henry Kaufman says senior management was caught up in frenzied pursuit of short-term gain. But "Dr. Doom" still has faith in the American economy's resilience.
Senior managements and the boards of directors of major financial institutions such as Citicorp (C) and Merrill Lynch (MER) failed to perform their proper corporate governance roles, helping to precipitate the financial markets crisis of recent weeks, says Henry Kaufman, president of Henry Kaufman & Co. and a board member at Lehman Brothers (LEH). The Federal Reserve also failed to understand risks created by the proliferation of new financial instruments, says Kaufman, who previously served on the Federal Reserve Bank of New York. Here are edited excerpts from a recent conversation.
Senior managements and the boards of directors of major financial institutions such as Citicorp (C) and Merrill Lynch (MER) failed to perform their proper corporate governance roles, helping to precipitate the financial markets crisis of recent weeks, says Henry Kaufman, president of Henry Kaufman & Co. and a board member at Lehman Brothers (LEH). The Federal Reserve also failed to understand risks created by the proliferation of new financial instruments, says Kaufman, who previously served on the Federal Reserve Bank of New York. Here are edited excerpts from a recent conversation.
Resolutions on Randomness: Beware the Black Swan
Resolutions on Randomness: Beware the Black Swan
You pay close attention to your marketing campaigns. You resolve to be ever more quantitative and rigorous in your approach for 2008. But have you also resolved not to be fooled by randomness, and to be aware of the nature of probabilities and risks that you face in your efforts to measure and predict the future? A few nuggets of unconventional mathematical wisdom inspired by a well-known rogue “empirical skeptic” might help.
Tuesday, February 5, 2008
Ghosn Maps Path Through Slump
Nearly a decade ago, Carlos Ghosn rose to fame for rescuing Nissan Motor Co. from near collapse and turning it into one of the world's most profitable auto makers.
Today, Mr. Ghosn, 54 years old, now chief executive of both Nissan and Renault SA, sees the global auto industry in need of a similar reversal of fortune. Strained by a weak U.S. market, rapid expansion in emerging markets and a shift in demand from gas guzzlers to ultra-low cost cars and fuel-sipping green vehicles, the world's auto makers are at a crossroads.
Born in Brazil to Lebanese parents and fluent in six languages, Mr. Ghosn divides his time between Tokyo and Paris. He stopped at The Wall Street Journal in New York recently to share his thoughts on the auto industry. Excerpts:
Today, Mr. Ghosn, 54 years old, now chief executive of both Nissan and Renault SA, sees the global auto industry in need of a similar reversal of fortune. Strained by a weak U.S. market, rapid expansion in emerging markets and a shift in demand from gas guzzlers to ultra-low cost cars and fuel-sipping green vehicles, the world's auto makers are at a crossroads.
Born in Brazil to Lebanese parents and fluent in six languages, Mr. Ghosn divides his time between Tokyo and Paris. He stopped at The Wall Street Journal in New York recently to share his thoughts on the auto industry. Excerpts:
Saturday, February 2, 2008
View from the Top transcript: John Thain
A transcript of the FT’s interview with John Thain, chief executive of Merrill Lynch. He speaks to US managing director Chrystia Freeland about managing risk, CDOs, monolines, emerging markets, the world economy and John McCain.
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