Friday, November 21, 2014
The recent increase in hedge fund activism is "hyperbolic" and should be carefully assessed, according to two notable scholars, John C. Coffee Jr. (corporate law; Columbia) and Darius Palia (corporate finance; Rutgers Business School), who have just published on comprehensive study on hedge fund activism entitled, "The Impact of Hedge Fund Activism: Evidence and Implications." The authors address...
Sunday, November 16, 2014
Once reviled as a threat to the status quo in executive suites and clubby corporate boardrooms, activist hedge funds are today lauded as catalysts for change, gaining clout and board seats in blue-chip companies: Canadian Pacific Railway, Microsoft Corp. and Procter & Gamble Co. Like the leveraged-buyout kings of the 1980s and 1990s immortalized as “Barbarians at the Gate,” hedge-fund...
Thursday, October 9, 2014
In response to the Global Financial Crisis of 2008-2009, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) in July 2010. Among its various provisions, Dodd-Frank outlines a series of broad reforms to the Credit Rating Agencies (CRA) market. Many observers believe that CRAs’ inflated ratings of structured finance products were partly to blame for the rapid...
Tuesday, November 27, 2012
Bankers and financial professionals attending a conference hosted by the Rutgers Financial Institutions Center earlier this month sounded resigned to the fact that they will have to live with controversial rules such as the Dodd-Frank Act, but even as the industry restructures, there are signs that stricter reforms are coming.
Tuesday, November 6, 2012
The two-year-old federal law, inspired by the collapse of the financial industry and the ensuing “Great Recession,” was intended to prevent another financial crisis by imposing new requirements for transparency, accountability and consumer protections. But recently, some unintended consequences of the law, namely the crushing burden on banks to meet these regulations, are starting to be raised by industry observers.
Tuesday, November 6, 2012
The conference hosted by the Financial Institutions Center and Rutgers Business School will open with a panel of experts who view U.S. banking regulations from very different perspectives. The panelists will include a policy maker at the Federal Reserve Bank in Kansas City, a Pulitzer Prize-winning financial journalist, a lawyer and the chief investment officer and head of fixed income for Alliance Bernstein.
Tuesday, October 16, 2012
Finance professor Darius Palia explains how Lehman Brothers' interconnections contributed to the bank's collapse, a factor that regulators realize now can be as important as an institution's size in evaluating its potential to disrupt the financial system.
Wednesday, September 26, 2012
Headlining the discussion will be Doug J. Peebles, Chief Investment Office & Head, Alliance-Bernstein Fixed Income, and Charles S. Morris, Acting Deputy to Vice-Chairman of FDIC, Vice President and Economist, Federal Reserve Bank of Kansas City, who will be debating the implementation of the Volker Rule, Dodd-Frank and other regulations.
Tuesday, January 10, 2012
This paper examines evidence of lending discrimination in prime and subprime mortgage markets in New Jersey. Existing single-equation studies of race-based discrimination in mortgage lending assume race is uncorrelated with the disturbance term in the loan denial regression. At the individual loan-level, we show that race is correlated with both observable and unobservable risk variables, leading...
Monday, December 13, 2010
Professor of Finance and Economics Darius Palia was recently asked to join the Editorial Board as an Associate Editor of the top-rated finance journal Journal of Financial and Quantitative Analysis (JFQA).
Thursday, January 7, 2010
Monday, December 14, 2009
Overall, “the good thing about Obama’s plans is that they’re targeted,” said Darius Palia, a finance and economics professor at Rutgers Business School and the founding director of Rutgers Financial Institutions Center. “The problem is that he originally pledged to slash the national budget deficit by the end of his first term, and stimulus programs like these make that an unlikely prospect. I’d...
Thursday, October 1, 2009
Professor of finance and economics Darius Palia is quoted in a story about the recent TD Bank computer glitch. Experts said computer glitches in bank mergers, while not uncommon, are the type of problem that can keep executives up at night. "I don't think it's a big risk in the scheme of things, but it depends how long this goes," said Palia. Most banks will have some problems. The question is,...