Segments in this Video

Hedge Fund Hypothetical (02:05)


The moderator introduces a scenario where hedge fund operators interview two equally qualified candidates who have different views on ethics. One is a strong capitalist the other feels bad about a recent transaction.

Hedge Fund Hypothetical Responses (03:11)

Experts disagree about whether or not sophisticated sellers have a responsibility to buyers in financial markets. Panel members respond to a question about hiring employees who value personal morals against capitalism.

Information Asymmetries (03:25)

Experts discuss the difference between what banks and hedge funds do and the responsibility of each to buyers. Employees should not have moral qualms about transactions nor should they shun regulation.

Pension Shortfall Hypothetical (03:05)

The moderator proposes a scenario where a city considers investing in a hedge fund. Unsophisticated investors who do not understand risk are undesirable clients.

Imposing Risk on Pensioners (02:28)

Experts respond to a hypothetical situation involving a city on the verge of bankruptcy that is considering investing in a hedge fund to cover a pension shortfall.

Percentage Based Fee Hypothetical (03:25)

The moderator proposes a scenario where a city with a tight budget needs to improve its infrastructure. A new financial innovation offered by an investment bank can help cities raise this money. Is it worth it?

Incentive Structures (02:18)

Experts discuss the pros and cons of an investment bank offering a struggle city capital in exchange for a percentage based fee. Politicians making the decision may be out of office before the obligation ends.

Risk Free Investment (02:19)

Experts discuss whether or not incremental programs offered by investment banks are helpful in a city's long-term budget.

Employee Incentive and Compensation (03:58)

The moderator proposes a scenario where a financial trader convinces her new manager to bet against her former employer on currency markets. Direct drive is a dangerous model for paying traders.

Proposed Pay Plan Hypothetical (03:42)

The moderator presents a scenario where a hedge fund's top trader is not happy with the new incentive and compensation plan. Regulations and company culture are two considerations when responding to this employee.

Bank Failure Affects Commercial Infrastructure (02:48)

The moderator presents a scenario where a hedge fund takes a huge loss in foreign currency markets. Experts give examples of investment banks making big mistakes.

Freedom to Fail (03:20)

Experts debate the role of the government in preventing and responding to failure by big banks. The inherent risk of banks, need for regulation, corporate social responsibility, and increased emphasis on performance are discussed.

Dodd-Frank Act (02:58)

Experts define and discuss proprietary trading. New rules create the risk of a "chilling effect" on bank risk taking activity.

Public Understanding of Dodd-Frank Act (02:55)

The moderator presents himself as the CEO of a financial institution. Experts propose suggestion for Congress about proprietary trading. Trust in regulators dropped with the failure of banks.

Overview of Dodd-Frank Act (01:43)

The goal of regulation is to protect taxpayers. An expert proposes a disincentive for banks getting too big. New regulation makes it more difficult to hide risk.

Too Big To Fail (02:26)

Experts discuss the role of big and small institutions in the financial crisis. The issue of breaking up big banks is complicated by the place of the U.S. in the global economy.

Safe Way to Fail (02:24)

Experts discuss the Dodd-Frank Act and whether or not government should allow big banks to fail. Some say holding banks responsible for withdraws will lead to unemployment and a slow economy.

Common Sense Rules and Transparency (02:31)

The moderator asks how a balance can be found between financial innovation and protection from risk. Information asymmetry, market efficiency, and responsibility are discussed.

Responsibility to Educate, Reform, and Repay (03:46)

Experts discuss the need to restore public trust in the financial services sector through education and regulation. Some argue America society is over financed.

Credits: Financial Innovation: A Risky Business? (00:53)

Credits: Financial Innovation: A Risky Business?

Need for Varied Perspective (02:16)

An expert responds to a hypothetical situation where a hedge fun manager must choose between to traders who have different ethical views.

Career Satisfaction in Financial Industry (01:52)

An expert discuss the social value of banking and the excitement the industry generates.

Institutional Support (01:58)

An expert talks about engaging unsophisticated investors in high risk transactions.

Financial Innovation (02:45)

An expert explains financial innovation. A current example is the capacity of mobile devices to provide quality financial services to low income families.

Regulation of Financial Service Industry (02:14)

Experts discuss sub prime loans as a financial innovation.

Rules Governing Compensation (02:12)

An expert discusses employee incentives in the financial industry.

Open Market Subject to Regulation (02:25)

An expert explains why it is not wrong for companies to take bets against large financial institutions. The 2008 economic crisis is discussed.

Challenge of Regulation (02:06)

An expert discusses the lost of trust in financial institutions as a result of the 2008 economic crisis. The integrated global economy has to be addressed to create a level playing field.

Vulcar Rule (04:48)

An experts explains proprietary trading, which is banned in the banking industry under new regulations.

What Does Failure Mean? (04:53)

An expert explains how the Dodd-Frank Act addresses the issue of banks being "too big to fail." Regulations address systemically significant financial institutions.

Importance of Financial Intermediaries (01:56)

An expert discusses the challenges involved in educating the public about the financial services industry.

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Financial Innovation: A Risky Business?

DVD (Chaptered) Price: $169.95
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Using a dynamic discussion approach in which a moderator poses hypothetical scenarios to a panel of experts, this program addresses hard questions that face the financial services industry and its widely touted “culture of innovation.” Columbia Law School Professor Robert J. Jackson, who advised senior U.S. Treasury officials during the 2008 financial crisis, leads the discussion. He elicits thoughtful and often surprising answers from the participants, who include Nobel-winning economist Robert Solow, former Congressman Barney Frank (D-MA), journalist Andrew Ross Sorkin (author of Too Big to Fail), and Bloomberg columnist Caroline Baum. Also featured are Blythe Masters, head of global commodities at JPMorgan Chase; Ed Conard, former managing director at Bain Capital; and Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission. A lively and in-depth exchange of ideas, the forum examines both the perils of pushing the financial envelope and the potential benefits of new financial tools. Includes bonus interview footage with Lew Kaden, former Vice Chairman of Citigroup. (64 minutes + bonus material)

Length: 87 minutes

Item#: BVL53766

ISBN: 978-0-81608-617-7

Copyright date: ©2012

Closed Captioned

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