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FMG in the news

The Financial Markets Group frequently appears in the press, and our staff and associates are often asked to comment on the latest financial news stories. Here you will find a selection of news articles relating to the FMG. 

How to Fix Wall Street’s Flawed System of Compensation
New York Times, July 2016
Report on a recent speech by Professor Charles Goodhart, who argues that transformation of the old partnership culture into a bonus culture where bankers, traders and executives have minimal accountability, has resulted in a marked increase in the frequency and intensity of financial crises.

Breaking the 'curse of the benchmarks
Irish Times, April 2016
Institutional investors’ obsession with short-term performance means money managers are engaging in activity that is “not merely superfluous but wealth-destroying”, causing bubbles, crashes and financial market dysfunction.

Do Benchmarks Distort the Markets?    &    The Curse of the Benchmarks, Part II
Morningstar, March 2016
Dimitri Vayanos and Paul Woolley have taken the common idea that benchmarks hamper fund managers one very large step further. In Curse of the Benchmarks, they argue that using market-capitalization-weighted benchmarks damages more than just fund managers. The practice, they claim, hurts the financial markets themselves. 

China's Belt-Road initiative to establish Asia-Europe economic zone, strengthen integration
Xinhua news, March 2016
China's Belt and Road Initiative will establish a large Asia-Europe economic zone, providing opportunities for dozens of countries along the "Belt and Road" routes integrating into the global economy, according to FMG's Simeon Djankov.

Fund managers lose out from benchmarking
Financial Times, March 2016
John Plender focuses on research by Dimitri Vayanos and Paul Woolley in an examination of financial benchmarking

A new contract for growth
The Economist, August 2015
Dr Paul Woolley's work is discussed in an article for The Economist about short-termism and the way investors employ fund managers.

The Morning Risk Report: How Activist Wolf Packs Work
Wall Street Journal, 19 February 2015
Focusing on Amil Dasgupta's 'Wolf-Pack Activism' research

One of the Most Famous Rules of Investing Might Be Totally Wrong
Bloomberg, 3 December 2014
Working paper by Paul Woolley and Dmitri Vayanos is cited in an article on the risk/reward relationship

Risk-return relationship has been upended
Financial Times, 5 November 2014
Prof Dimitri Vayanos (Director of the PWC) and Dr Paul Woolley's new research paper "Asset Management Contracts and Equilibrium Prices" is discussed in this article for the FT.

The myth of expertise
investorschronicle.co.uk, 20 October 2014
Prof Christopher Polk's (Director of the FMG) research is quoted in this article about whether fund managers actually have any expertise.

Women rise at Fidelity, Santander as gender gap persists
Bloomberg.com, 14 October 2014
The number of women holding top roles in banking and asset management, though improving, still lags behind other industries. While women have more than half of all jobs in financial services, their ranks drop off between the mid-manager and executive levels. Dr Tom Kirchamier (FMG) is quoted.

Prison prospect makes UK bank boards less appealing
, 8 October 2014
The UK is preparing to introduce some of the world's toughest rules on financial conduct, but what will the consequences of this be? Dr Tom Kirchmaier (FMG) is quoted.

Double agents
The Economist, 13 September 2014
Dr Paul Woolley and Prof Dimitri Vayanos' new paper 'Asset Management Contracts and Equilibrium Prices' is discussed in an article for The Economist about the relationship between investors and fund managers. 

Ballooning finance
voxeu.org, 21 August 2014
The Global Crisis has intensified debates over the merits of financial innovation and the optimal size of the financial sector. In this column for Vox, Dr Paul Woolley and his co-authors present a model in which the growth of finance is driven by the development of a financial innovation.

Unhappy private-equity couple about to split up
wsj.com, 11th July 2014
Private-equity firm TPG is about to extricate itself from an ill-fated investment in a coffee business owned by Israel's Strauss family. Dr Ulf Axeslon who lectures in private equity at LSE and heads up the FMG's Abraaj Group research initiative for the study of private equity is quoted.

Pricking the balloon of financial excess
standard.co.uk, 9th July 2014
Dr Paul Woolley's new paper 'Dynamics of Innovation and Risk', forthcoming in the Review of Financial Studies, argues that the financial sector is far too large and that the nation would be better off if it was half the size. Anthony Hilton of the Evening Standard discusses.

Dragon kings' lurk under market calm
Financial Times, 3 July 2014
Dr Paul Woolley's new paper 'Dynamics of Innovation and Risk' in which he studies the dynamics of an innovative industry when agents learn about the likelihood of negative shocks, is discussed in an article by the Financial Times.

Charles Goodhart on Carney, rates and what to expect next
Tradingfloor.com, 25 June 2014
Today the Bank of England (BoE) outlined steps to avert a housing boom.This comes after Mark Carney said the housing market could be a threat to the UK economy's stability. Professor Charles Goodhart, former member of the BoE Monetary Policy Committee and current Programme Director at the FMG, spoke to SAXO TV ahead of the bank's announcement, about his prediction for interest rate rises and his concern about the lack of wage growth in the UK.

Dougan’s reign tested as Credit Suisse tax charge looms
Bloomberg.com, 12 May 2014
Tom Kirchmaier (FMG Research Associate) is quoted in this article looking at the investigation surrounding Credit Suisse and CEO Brady Dougan. Credit Suisse is accused of helping Americans evade taxes and many have called for Dougan to resign.

How to beat the professionals
investorschronicle.co.uk, 25 April 2014
Research by FMG Director, Prof Christopher Polk, is quoted in this article examining and disproving the common myth that for retail investors to beat the market they should act as professionals. You can view Prof Polk's paper 'Best Ideas' here.

Anthony Hilton: Calls for change to an absurd system
standard.co.uk, 1 April 2014
There is mounting evidence that much of today's financial system is dysfunctional and that too often it meets its own needs rather than those of its clients. Paul Woolley (founder of the Paul Woolley Centre is quoted).

Annuities: What now for retirement income?
bbc.co.uk, 20 March 2014
A change in pension rules heralded in the chancellor's speech means a retiree can now draw their entire pension in one go, if they wish. For some, the freedom will mean retirement planning that can better suit their needs. But what does it mean for the centuries-old annuity, and the security of an income for life which it provides? Tom Kirchmaier (FMG Research Associate) is quoted.

Why markets are inefficient and what can be done about it? [PDF]
Financial Times, 9 March 2014
Markets are not perfectly efficient. More or less everyone agrees to this in the wake of the financial crisis. So why are markets inefficient, and what can be done about it? The most popular answer is to blame human nature. Paul Woolley (Founder of the Paul Woolley Centre) however thinks he is on his way to a new answer. On his reading, the problem is lodged in the division between principals and agents.

London regulator brings heavier touch to banking rules
, 12 February 2014
Martin Wheatley (head of the UK Financial Conduct Authority) last year handed out £474 million in fines to financial firms, more than seven times higher than in 2011. However UK penalties still pale in comparison to those levied on banks by US authorities. Tom Kirchmaier (FMG) is quoted.  

Goodhart: regulatory reform 'won't stop next crisis'
risk.net, 30 January 2014
Charles Goodhart (FMG Programme Director) spoke at the Systemic Risk Centre (SRC) public lecture 'the next crisis' on the 28th January. The evening was an opportunity for the panel of experts to debate the effectiveness of the response to the 2007-08 crisis. 

The London Evening Standard have also written a review of the event. Read more here.

Interest rate delay hurts economy, warns Sentence 
thetimes.co.uk, 8 January 2014
A member of The Times' Shadow Monetary Policy Committee has warned that the Bank of England is damaging the fragile economic recovery because of its decision not to raise interest rates for the foreseeable future. Charles Goodhart (FMG) is mentioned. A subscription to thetimes.co.uk is needed to view this article.

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