NYConvergence: “FinTech Innovation Lab Makes Wall Street Sexy Again”

In a double play … Professor Bruce Bachenheimer’s recent quote in MIT’s “Technology Review” concerning Wall Street losing some of its allure due to the financial crisis was picked up by NYConvergence.com, which reports on digital media technology in the Tri-State region.

Since Wall Street’s profits and prestige have slumped, the best and the brightest are looking elsewhere for jobs, making it harder to lure promising recruits. Bruce Bachenheimer, director of entrepreneurship at Pace University, told Technology Review that in the 1990s it was ”exciting and sexy to say you were working on Wall Street.”  But that’s changed. Those formerly positive perceptions have flipped 180 degrees.

Meanwhile, the prospect for tech entrepreneurs joining startups with the potential of a lucrative IPO is looking brighter all the time, reported NYConvergence in an article about the FinTech program.  Launched in December 2010, the lab is an incubator of NYC-based financial technology startups.

Technology Review: “Wall Street’s Search for Innovation”

Lubin Professor Bruce Bachenheimer, Director of Pace’s Entrepreneurship Lab, discusses the technology brain drain from Wall Street, how it’s become possible to be a force in financial services development without being in Manhattan, and what Wall Street is trying to do about it.

New York is investing in financial startups to make sure technologists and new ideas stick around.

After banking deregulation took off in the 1990s, it became “exciting and sexy to say you were working on Wall Street,” says Bruce Bachenheimer, clinical professor of management and director of entrepreneurship at Pace University. Money and prestige helped lure top academic talent, including mathematicians and computer scientists, to hedge funds.

But that has changed, beginning with 2008 and the financial meltdown. 

“The perception of working on Wall Street went from positive to negative,” Bachenheimer told Erik Sherman, author of  the article, “Wall Street’s Search for Innovation,” published in MIT’s Technology Review on March 16. Wall Street reached its latest low this week when a Goldman Sachs executive resigned and publicly excoriated the company’s ethics in a New York Times op-ed.

Meanwhile, places like Silicon Valley, Boston, and other hotbeds of high tech suddenly look like the most attractive places to be. With the recent spate of Web-company IPOs, technology startups are also potentially a faster ticket to wealth than Wall Street, where bonuses fell 14 percent last year, continuing a multi-year slide.

“Perceptions of desirability are very important in entrepreneurship. [Technologists] want to go where the action is and want to be doing cool stuff,” says Bachenheimer.

U.S. News & World Report: “Weigh Costs of Part-Time and Full-Time M.B.A. Programs”

The Lubin School of Business’s Part-Time M.B.A Program offers working professionals like Morgan Stanley’s Saj Sahni (pictured) the opportunity to earn a graduate business degree while continuing to pursue a full-time career. Sahni discusses the challenges of balancing his school and work lives.

Pursuing a part-time M.B.A can offer flexibility, as well as financial and professional advantages.

However, even for M.B.A. candidates for whom a part-time program makes the most sense, there are potential issues beyond finances to consider.

For part-time Pace University Lubin School of Business student Saj Sahni (pictured), balancing his responsibilities poses daily challenges, he told U.S. News & World Report’s Katy Hopkins in the March 14 article,  “Weigh Costs of Part-Time and Full-Time M.B.A. Programs; The major difference is often not in what you pay, but how.”

“It’s really difficult with the workload and your deadlines at work and trying to balance your school work,” says Sahni, who squeezes in homework during lunch breaks at Morgan Stanley. “It’s tough, but you have to do it for the short run.” 

 

 

MEDIA ALERT: Tuesday, Dec 13 at 7 PM – “The Global Marketplace: Challenges & Opportunities” – An Inside Track Event with Pace President Stephen J. Friedman and Mario J. Gabelli, Institutional Investor’s “Money Manager of the Year”

Get the “INSIDE TRACK” on the global marketplace with Pace President Stephen J. Friedman and Award-Winning Money Manager Mario Gabelli. Gabelli’s firm returned 28.6% for institutional clients in 2010, and has generated annualized returns of 16.3% since 1977.

TUESDAY, DECEMBER 13 at 7:00 PM, NYC CAMPUS

INSIDE TRACK WITH PRESIDENT STEPHEN J. FRIEDMAN

 Institutional Investor’s “Money Manager of the Year”

Mario J. Gabelli discusses:

” The Global Marketplace: Challenges & Opportunities”

 Gabelli’s firm returned 28.6% for institutional clients in 2010,

has generated annualized returns of 16.3% since 1977 

 

When: Tuesday, December 13, 7:00 PM to 8:30 PM.

Where: Pace University, Michael Schimmel Center for the Arts, 3 Spruce Street, New York, NY 10038. Directions: http://bit.ly/qxH0g3

Who: Mario J. Gabelli, one of the leading investors of our time in a compelling discussion on the unique challenges and opportunities of today’s global marketplace. Gabelli is the founder, Chairman and CEO of GAMCO Investors, Inc. (NYSE:GBL), with $31.3 billion in assets under management, a widely recognized provider of investment advice and financial services to alternative investments, mutual funds, institutional, and high net worth investors. GAMCO returned 28.6% for institutional clients in 2010, and since inception in 1977 has generated annualized returns of 16.3%.

Gabelli is a frequent commentator on CNBC and CNN and in financial print media including Institutional Investor, Business Week, Fortune, Forbes, Money and Changing Times. In April, Institutional Investor selected Gabelli as “Money Manager of the Year.”

Inside Track with President Stephen J. Friedman brings renowned thought leaders and policymakers into engaging conversations on critical issues with Pace’s president, a former senior partner at Debevoise & Plimpton LLC, commissioner of the Securities and Exchange Commission, deputy assistant secretary of the Treasury; executive vice president at The Equitable Companies Incorporated and the E.F. Hutton Group Inc., and U.S. Supreme Court law clerk. Each guest’s presentation is followed by a question-and-answer session including questions from the audience.

RSVP: The event is free and open to the public and the Pace community. Media admission by press passes. Please register in advance online at www.pace.edu/insidetrack.

Furthermore: Among Gabelli’s ace stock pickers is a team called FOCUS FIVE which selects five stocks every quarter that should outperform the market in a significant way. The group has an impressive performance record – beating the market averages each quarter. Since FOCUS FIVE’s inception on January 31, 2006, its stock bets have risen over 200% versus about 4.5% for the Standard & Poor’s 500-stock index. FOCUS FIVE’S stock picks for the current quarter are:

  • Cameco Corporation (NYSE: CCJ) – one of the world’s largest uranium producers.
  • Dana Holding Corporation (NYSE: DAN) –  a world leader in the supply of driveline products
  • Southwest Gas Corporation (NYSE: SWX) – a natural gas provider to more than 1.8 million customers
  • Ixia (NASDAQ: XXIA) – next generation wireless
  • Xylem Inc. (NYSE: XYL) – a spin-out of ITT’s water unit.

Gabelli’s long term philosophy is to “use the news of the day as a tailwind for your investment future,” managing investments against long-term trends in world affairs. GAMCO Investors, Inc. is best known for research-driven, value-oriented equity investing expertise based on the principles of Graham & Dodd — that is, investing in undervalued companies that have a high probability of achieving their intrinsic or private value over time.

 Pace Media Contact: Samuella Becker, sbecker2@pace.edu, 212-346-1637 or 917-734-5172

DailyFinance – “Then and Now: How the Economy Has Changed Since 9/11”

Think back to the evening of Sept. 10, 2001: It’s been 10 years, and in some ways, it’s as if nothing has changed. That Monday night, the United States was coming off a recession stemming from a bursting bubble, consumer confidence was declining, and predatory lending was in the headlines.

But as we all know, everything did change the next morning, in ways that we are still working to understand.

Over the last decade, consumer confidence and housing prices have gone through a dramatic rise and fall, and two massively expensive wars in Iraq and Afghanistan were initiated. 

AOL’s DailyFinance asked economists including Lubin’s Niso Abuaf, to share their thoughts on two questions: What were the most significant economic shifts between 2001 and 2011; and if that decade had a headline, what would it be. 

The Great Disappointment in Real Wage Growth and European Integration

Niso Abuaf, professor of finance, Pace University

“Technology [the innovation of the ’90s] bore fruit and the productivity gains we have experienced in technology, media and telecom sectors have been tremendous with the iPhone, iPad, Blackberry and virtual workplace. But has that accrued to the typical U.S. worker or European worker?  Unfortunately, those productivity gains have not translated into real wage gains and it has been a disappointment. Wages have not kept up with productivity gains. Another disappointment is that Europe’s lack of political union and its response to crisis in [the PIIGS nations] has not been as decisive and quick a response as the U.S. response during the Great Contraction.”

Kitco News: “FOCUS – Gold Could Rally If U.S. Debt Ceiling Talks Falter”

The stalemate between Democrats and Republicans regarding a vote to lift the U.S. debt ceiling is giving gold a boost, and if an agreement is not reached before the August 2 deadline, many market watchers believe there would be a rush to buy gold and other hard assets. Economist Michael Szenberg discusses the potential impact on financial and commodity markets if the U.S. cannot raise its debt ceiling.

The bickering between the Democrats and Republicans over raising the debt ceiling has been bullish for gold.

Even if the debt ceiling is not raised, the U.S. would have money coming in to pay some obligations, but it would have to make choices on who gets paid and who doesn’t. That’s why it is considered a technical default.

Michael Szenberg, chair and distinguished professor of finance/economics at Pace University’s Lubin School of Business, said he believes that yields would likely spike under a default situation, but points out the rise is relative, noting that in the 1970s and early 1980s, bond yields were hovering around 20%. “The American economy is dealing with tremendous fragility, but this (debate) might take us in the direction we need to go,” Szenberg told Kitco News, a precious metals website which gets ONE MILLION hits a day.

TheBlaze.com and Business Insider: “Congressman Wants Justice Department To Investigate ‘Terrorist Plans’ In Former Union Official’s Bank Plot”

At The Left Forum at Pace’s downtown campus earlier this month, one of the several thousand participants, Stephen Lerner, a former SEIU official, repeated earlier calls for “a new financial crisis,” according to coverage by Fox news and other media.

At the Left Forum earlier this month, Stephen Lerner, a former SEIU official no longer with the union, revealed what several media called a “secret” plan to “cause a new financial crisis.'” Fox News covered the story; so did the websites The Blaze and Business Insider, which reported on a letter from U.S. Representative Jason Chaffetz (R-UT) to the US Attorney General requesting an investigation.

Stephen Lerner

 

Read the full letter in TheBlaze.com or Business Insider.

TheStreet: “Morgan Stanley Mulls Smith Barney’less Future”

Morgan Stanley is thinking of getting rid of the Smith Barney brand, made famous by actor John Houseman (pictured) delivering the famous tag line: “We make money the old-fashioned way. We earn it.”

Is it a good idea for Morgan Stanley to get rid of a brand that’s familiar to customers and clients and has its own cache? “Smith Barney is a classic brand,” says Paul Kurnit, a marketing professor at Pace University’s Lubin School of Business. “But, it is quaint, not current, charming, not forward edge….Likely, if it goes away, it will not be terribly missed.”

Why are some bank brands kept while others are gone?  Bear Stearns vanished quickly when taken over by JPMorgan Chase, IndyMac became OneWest, but Bank of America incorporated the Merrill and U.S. Trust brands into its own. Travelers not only kept its name when spinning out from Citi, but paid big for the little umbrella symbol. 

TheStreet polls marketing experts such as Lubin’s Paul Kurnit as to whether it is a good idea for Morgan Stanley to get rid of the Smith Barney brand.

NEWS RELEASE: Lubin Maintains Dual AACSB Accreditation, An Elite Distinction Shared by Fewer than 2% of World’s Business Schools

AACSB International lauds Lubin’s strengths: “Student-focused; experience-based learning; financial capital location; small classes; culture of collegiality; strong loyalty and program satisfaction among students and alumni; faculty commitment to students; jobs at graduation – recent placement rates for BBA/MBA program approach 100%.”

FOR IMMEDIATE RELEASE

Media Contact/Pace Media Relations: Samuella Becker, 212-346-1637 or 917-734-5172, Sbecker2@pace.edu

Pace University’s Lubin School of Business Achieves Prestigious Maintenance of Dual Accreditation

 Elite Distinction from AACSB is Shared by Fewer than 2% of World’s 13,000 Business Schools

 Is One of Three New York City B-Schools with Dual Accreditation in Business and Accounting

AACSB International lauds Lubin’s strengths: “Student-focused; experience-based learning; financial capital location; small classes; culture of collegiality; strong loyalty and program satisfaction among students and alumni; faculty commitment to students; jobs at graduation – recent placement rates for BBA/MBA program approach 100%.”

NEW YORK, January 18, 2011 – Pace University’s Lubin School of Business has successfully maintained its dual accreditation for another five years from AACSB International, the Association to Advance Collegiate Schools of Business. This accreditation is the hallmark of excellence for management education.

“It is more important than ever to be worldly and highly proficient in the analysis and skills necessary to compete in a fast changing and tumultuous global economy,” said Neil S. Braun, Dean of the Lubin School of Business, who is a former NBC Television Network President and CEO of Viacom Entertainment.

“Being among the very select group of business schools in the world that have earned dual AACSB accreditation,” he added, “is testimony to Lubin’s commitment to excellence in preparing our students for the world into which they will graduate.”

AACSB-accredited business schools have the highest-quality classes, teachers, research, students and programs. Less than two percent of the world’s almost 13,000 business schools have achieved dual business and accounting accreditation from AACSB, and this prestigious endorsement places Lubin in an elite class. According to an AACSB International press release issued January 6, 2011,  Lubin is one of 47 schools that have maintained their accreditation in business and one of nine who have maintained their accreditation in accounting this year. Lubin is one of only three New York City business schools with dual AACSB accreditation.

Student Centered

In its recommendation, the AACSB review team lauded the ways Lubin “successfully fulfills the succinctly stated student-centric mission.”

Specificially, the report said: “There is a strong faculty engagement and outreach to prospective employers and a focus on experience-based learning. …. In spite of having multiple campus locations, the faculty and staff have been very proactive in serving the needs of students at both the graduate and undergraduate levels and providing a high level of personal attention. For example, program advisers and career advisers on all campuses work well together to ensure a seamless interface regardless of location. Faculty members take their teaching seriously … Class sizes remain generally between 26 and 29.” The report also cited Lubin’s Assurance of Learning process as “exemplary.”

AACSB International accreditation assures stakeholders that business schools:

  • Manage resources to achieve a vibrant and relevant mission.
  • Advance business and management knowledge through faculty scholarship.
  • Provide high-caliber teaching of quality and current curricula.
  • Cultivate meaningful interaction between students and a qualified faculty.
  • Produce graduates who have achieved specified learning goals.

“It takes a great deal of commitment and determination to earn AACSB accreditation,” said Jerry Trapnell, executive vice president and chief accreditation officer of AACSB International. “Schools must not only meet specific standards of excellence, but their deans, faculties and staffs must make a commitment to ongoing improvement to ensure that the institution will continue to deliver high quality education to students.”

About The Lubin School of Business at Pace University

Lubin is the second largest private AACSB-accredited business school in New York and the seventh largest private AACSB-accredited business school in the country. Lubin first earned AACSB accreditation in 1996 and the accounting department followed in 2006.   Lubin is one of six schools and colleges within Pace University.  It offers ten undergraduate majors and 18 graduate degree programs in business.  Current enrollment is 2,820 undergraduates and 1,157 graduate students.  The school is named for Joseph I. Lubin, an alumnus and benefactor who co-founded the nationwide accounting firm of Eisner Lubin.

Anchored on a strong liberal arts foundation, undergraduate BBA students can major in accounting, finance, marketing, and management, and choose concentrations in entrepreneurship, hospitality and tourism, human resources management, international management, and many others. Lubin’s graduate programs offer a wide range of MBA, EMBA, BBA/MBA, MS, MFP and DPS programs on either a full-time or part-time basis.

Lubin’s mission is to provide its students with exceptional experienced-based learning that blends business theory with practical applications to prepare its graduates for successful professional careers in the global business environment. Lubin has a large and diverse international student population, with 672 students representing 75 countries.

Physical proximity of Pace’s New York campus to Wall Street and of its Westchester campuses to many nearby corporate headquarters facilitates strong corporate partnerships. Pace’s Career Services Program, with 927 students participating annually in internships (almost 700 from the Lubin School), is the largest university co-op program in the New York metropolitan area.

Notable Lubin alumni include Phil Bleser, Managing Director and CEO, Mid-Corporate Banking Group, JPMorgan Chase & Co.; Paul A. Galiano, Senior Managing Director (Co-Acquisitions, Dispositions, Capital Markets, JV Transactions), Tishman Speyer; Mel Karmazin, CEO, Sirius Satellite Radio Inc.; William C. Nelson, Chairman and CEO, Home Box Office; David J. Pecker, Chairman, President and Chief Executive Officer of American Media, Inc; James E. Quinn, President, Tiffany & Co.; Jack Ribeiro, Global Managing Partner, Global Financial Services Industry, Deloitte & Touche USA LLP; Ivan G. Seidenberg, Chairman and CEO, Verizon Communications; Marie J. Toulantis, former CEO, Barnes & Noble.com; and Richard Zannino, Managing Director of CCMP Capital and former CEO, Dow Jones & Company.

About Pace University

For 104 years, Pace University has produced thinking professionals by providing high quality education for the professions on a firm base of liberal learning amid the advantages of the New York metropolitan area. A private university, Pace has campuses in New York City and Westchester County, New York, enrolling nearly 13,000 students in bachelor’s, master’s, and doctoral programs in its Lubin School of Business, Dyson College of Arts and Sciences, Lienhard School of Nursing, School of Education, School of Law, and Seidenberg School of Computer Science and Information Systems. www.pace.edu

About AACSB International

AACSB International (The Association to Advance Collegiate Schools of Business), founded in 1916, is an association of more than 1,200 educational institutions, businesses and other organizations in 78 countries. AACSB’s mission is to advance quality management education worldwide through accreditation, thought leadership, and value-added services. AACSB accreditation is the mark of quality distinction most widely sought after by business schools—less than 5 percent worldwide have earned the achievement. As the premier accrediting body for institutions offering undergraduate, master’s, and doctorate degrees in business and accounting, the association also conducts a wide array of conferences and seminar programs at locations throughout the world. AACSB’s global headquarters is located in Tampa, Florida, USA and its Asia headquarters is located in Singapore.

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TV Tokyo: “Dictionary of Money” – Arbitrage (Episode 18); Bid-Ask (Episode 20)

TV Tokyo, one of the major TV networks in Japan, features a weekly business news program called “Dictionary of Money.”

The purpose of the program – which has approximately 10 to 15 MILLION viewers nationwide – is to educate its audience about the U.S. economy and New York City as the financial center of the world.

Lubin School of Business Professors are becoming “regulars” with recent guest appearances by:

* Iuliana Ismailescu, Ph.D., Assistant Professor of Finance, who discussed “Arbitrage” (the practice of taking advantage of a price difference between two or more markets).

* Aron Gottesman, Ph.D., Associate Professor of Finance, who explained the concept of “Bid-Ask” (essentially the difference in price between the highest price that a buyer is willing to pay for an asset and the lowest price for which a seller is willing to sell it).

Dr. Iuliana Ismailescu simplifies “Arbitrage” for Dictionary of Money’s almost 15 million viewers, by explaining:

* What is it?
* How does it work?
* Is it risk-free?
* Who/What is an arbitrageur?

http://www.m2j.co.jp/sukusuku/money_jiten/20101031.html

Dr. Aron Gottesman, on the subject of “Bid-Ask,” discusses:

* Where and how is this used in the market/NYSE etc.
* Who bids, and who asks.
* Defines what roles they play.
* Gives examples of how the process works.

http://www.m2j.co.jp/sukusuku/money_jiten/20101114.html

Click on the links, then the forward arrow to the bottom left of the TV screen, to learn more about these topics.