Of all the events of the recent financial crisis, none shook the American establishment as profoundly as the fall of Lehman Brothers in September 2008. News articles described the firm as an “institution” of American capitalism, employing adjectives such as “venerable,” “legendary,” and “iconic.” Commentators proclaimed the downfall of independent investment firms, certain that the … Read more
In reform, a return to monetary policy With the spotlight on the Federal Reserve in the wake of the financial crisis, the Obama administration and Congress have begun debating the Fed’s role in overseeing and regulating the financial sector. Among President Obama’s July recommendations for reform was an expanded role for the Fed, including oversight … Read more
Will Harvard’s graduates still flock to finance? From those already interning as summer analysts to those with an active disdain for such work, no Harvard student can help but notice the scores of campus recruiting visits made by financial institutions. Indeed, “I-banking,” consulting and other jobs in the finance industry are among the most popular … Read more
Exorbitant compensation threatens the stability of the banking system Few people caught in the throes of last year’s financial crisis would have predicted that only one year after the fall of Lehman Brother, top Wall Street firms would be raking in record-breaking profits—and, more pointedly, doling out record-breaking bonuses. Yet October’s earning reports confirm this … Read more
Congress’s plan for giving investors a voice The eternal optimist can take heart that Wall Street’s near-meltdown over the past year has at least pushed financial services reform to the top of Congress’ agenda. Though some proposals, such as creating a Consumer Financial Protection Agency and beefing up the Federal Reserve’s regulatory authority, have attracted … Read more
Boring is Best in Financial Reform The most famous story of Wall Street is of an out-of-town visitor brought to Lower Manhattan and shown the dazzling boats of the bankers and brokers. “But where are the customers’ yachts?” the visitor inquires. The perception of Wall Street as the embodiment of rapacious waste continues to haunt … Read more
The difficulty of green job promotion Since its inception, the environmental movement has largely defined itself against corporate exploitation, and supported ecological integrity even in the face of economic opposition. Nowhere has more been at stake in this historical confrontation between environmental and economic interests than in the politics of energy and global climate change. … Read more
Will the new GM ever be another General Motors? Throughout the 1980s General Motors controlled almost half of the American automobile market, and since then that share has diminished to less than 20 percent. In the past decade, as GM struggled to convince its investors that it had a viable business model, its stock steadily … Read more