Author Archives: Lawrence Goodman

Rhodes on Debt for Vaccines program

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CFS Chairman of the Advisory Board William R. Rhodes and World Health Organization epidemiologist Cristina Valencia offer an intriguing idea to help ameliorate the COVID-19 pandemic in Latin America… debt for vaccine swaps.

Bill pioneered the use of debt for equity swaps throughout the Emerging world, as head of many advisory committees of international banks. The present idea builds on debt for nature swaps – integrating pharmaceutical companies.

We look forward to any comments you might have.

To view the full article:
https://wrrga.com/wp-content/uploads/2019/02/Breakingviews-Guest-view-Consider-a-debt-for-vaccines-program.pdf

Post BREXIT Risk Conference / Call for Papers

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An important United Kingdom economics conference “Post BREXIT: Uncertainty, Risk Measurement and COVID-19 Challenges” is being held online on June 22-23.  Call for Papers information is below.

CFS Director of Advances in Monetary and Financial Measurement (AMFM) Professor William A. Barnett will be delivering a keynote lecture “Is the BREXIT Bifurcation Causing Chaos in the United Kingdom?”

Other keynotes include:

David Aikman: Professor of Finance and Director of the Qatar Centre for Global Banking and Finance, King’s Business School, King’s College.
Patrick Minford: Professor of Applied Macroeconomics at Cardiff University.
Professor Jagjit Chadha: Director of the National Institute of Economic and Social Research (NIESR).
Professor Costas Milas: Professor of Finance at the Management School, University of Liverpool.

The Call for Papers at the U. of Birmingham is at:
https://www.birmingham.ac.uk/schools/business/events/2021/post-brexit-uncertainty-risk-measurement-covid19-challenges.aspx

If you would like to submit a paper, the Call for Papers contains a link to another online page providing more details about the conference and instructions about deadlines and how to submit.  The conference will produce special issues of two journals (Economic Modeling, and European Journal of Finance).

The conference is open to the public with no registration fee.  The Call for Papers contains a link to the registration page.

Harvard Law School Forum publishes CFS analysis of Robinhood and GameStop

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The Harvard Law School Forum on Corporate Governance published CFS analysis of Robinhood and GameStop.

Events surrounding GameStop and Robinhood signal future issues that financial market participants are destined to confront and regulators are eager to confront.

Steven Lofchie, Robin L. Lumsdaine, John D. Feldmann, Diane Glossman, Jack Malvey, Yubo Wang, and I,

1) examine essential issues as well as
2) propose next steps.

As these are complex and multipronged issues, we look forward to any comments you might have.

To view the full article:
https://corpgov.law.harvard.edu/2021/02/23/robinhood-and-gamestop-essential-issues-and-next-steps-for-regulators-and-investors/


The Future of Risk Management

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CFS special counselor David X Martin and David R. Koenig, founder of the Directors and Chief Risk Officers group (DCRO) opine on “The Future of Risk Management.”  Risk management and crisis prevention are longstanding core objectives and activities at CFS.

David and David offer perspective on how boards and organizations can foster a positive embrace of risk taking. Topics include:

– Translating the new risks
– Resiliency planning
– Risk any unanticipated impact of efficiency
– Forward facing techniques
– Professionalizing risk management
– The future of risk governance at the board level

To view the full article:
http://www.CenterforFinancialStability.org/research/Risk_Future_022221.pdf

Bubbles, Quantities and Short Sales podcast

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My friend and former Salomon Brothers colleague, Larry Bernstein hosts an engaging “What Happens Next?” weekly podcast.

We spoke about bubbles, monetary quantities and short sales – covering:

– future implications for financial markets… why it’s a bubble and
– public policy, regulatory risks, and what to do.

To listen to the podcast:
https://www.whathappensnextin6minutes.com/sessions/gamestop-and-antitrust/#goodman

To view the remarks:
http://www.centerforfinancialstability.org/research/Bubbles_Shorts_021721.pdf

Thanks To A New Way Of Counting Money… This Is The Best Outlook For GDP In Years

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My friend and former colleague, Raul Elizalde wrote a thoughtful piece for Forbes – “This Is The Best Outlook For GDP In Years, And We Know It Thanks To A New Way Of Counting Money.”

Raul nicely frames CFS Divisia and key issues in plain and direct language. He then offers his perspective on financial markets by incorporating CFS Divisia.

Raul is the founder, president, and CIO at Path Financial.

To view the full article:
https://www.forbes.com/sites/raulelizalde/2021/02/10/this-is-the-best-outlook-for-gdp-in-years-and-we-know-it-thanks-to-a-new-way-of-counting-money/?sh=b3a4983122c2

Robinhood and GameStop: Essential issues and next steps for regulators and investors

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The hullabaloo surrounding the run up in the price of GameStop (GME) and the activities of Robinhood have generated front page news, calls for action, and allegations of wrongdoing.

However, lost in the headlines and struggles between good and bad or big and little is the issue of greatest concern to all – financial stability.

A group of Center for Financial Stability (CFS) experts
1) examine essential issues as well as
2) propose next steps.

As these are complex and multipronged challenges, we look forward to any comments you might have.

To view the full article:
www.CenterforFinancialStability.org/research/GME_Robinhood_020421.pdf

Today’s WSJ: “Corporate Debt ‘Relief’ Is an Economic Dud”

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Today, The Wall Street Journal published an op-ed titled “Corporate Debt ‘Relief’ Is an Economic Dud.”

CFS Board Member and former FDIC Chair Sheila Bair and I note how:

Conservatives accuse progressives of wanting to destroy capitalism. Yet a greater threat than Bernie Sanders is the prospect of serial market bailouts by monetary authorities.

The creation of the corporate facilities last March marked the first time in history that the Fed would buy corporate debt. The plan went far beyond previous quantitative easing.

– There is not much evidence that all of that cash went toward creating and preserving jobs in the U.S.
– Corporate facilities merely intensified the damage that monetary interventions had already dealt to U.S. capital allocation.

Capitalism doesn’t work unless capital costs something and markets don’t work unless they are allowed to rise and fall.  Corporate facilities should not become part of the Fed’s standard tool kit. Let them die.

We look forward to any comments you might have.

To view the full article:
https://www.wsj.com/articles/corporate-debt-relief-is-an-economic-dud-11609975810?st=3v9nhfz6u4los6q&reflink=desktopwebshare_permalink

Rhodes on Global Policymakers and the Macro View

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As 2021 approaches, remarks by CFS Advisory Board Chairman William R. Rhodes are essential for the year ahead.

As part of the Foreign Policy Association’s (FPA) Great Decisions series, Bill addresses:

  • Views on the world economy,
  • Implications from the recent G20 meetings,
  • Effects of the COVID-19 pandemic on the economies of the emerging markets,
  • Thoughts on the policies of the incoming Biden administration,
  • Climate change and green finance,
  • The Venezuelan political and economic tragedy and
  • Views on the Chinese economy.

View the interview at https://www.youtube.com/watch?v=DkjUYVSxLEc&authuser=0

With best wishes for a strong, healthy, and joyous New Year,
Larry

M. Shafik Gabr Joins CFS Distinguished Advisory Board

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FOR IMMEDIATE RELEASE

THE CENTER FOR FINANCIAL STABILITY
APPOINTS M. SHAFIK GABR TO DISTINGUISHED ADVISORY BOARD

(New York, New York – December 10, 2020)

The Center for Financial Stability (“CFS”), today, announces the appointment of M. Shafik Gabr to its distinguished Advisory Board.

Mr. Gabr is a renowned leader in international business, innovation, investment and one of the world’s premier collectors of Orientalist art, and an accomplished philanthropist.

During his career, Mr. Gabr established over 25 companies plus three investment holding companies including ARTOC Group for Investment and Development which, established in 1971, is a multidisciplined investment holding company with businesses in infrastructure, automotive, engineering, construction and real estate, over the past three years focusing on investment in technology and artificial intelligence.

“I am pleased to join such a distinguished institution as the Center for Financial Stability,” Shafik Gabr said. “I have much respect and admiration for Chairman Bill Rhodes and the ten years of accomplishments and innovations at the CFS.”

William R. Rhodes, the Chairman of the Advisory Board stated, “Shafik’s experiences in finance, international affairs, and the Middle East represent welcome additions and complements to our senior distinguished Advisory Board.” He added that “a shifting landscape in the Mid-East, United States, and the world more broadly requires effective dialog and intellectual engagement – areas where Shafik has so actively and effectively led over the years.”

“Shafik’s ‘East-West: The Art of Dialogue’ is inspirational. His knowledge of the investment and policy landscape is extraordinary. We are thrilled and honored to have him on the CFS Board,” said Lawrence Goodman, President and Founder of the Center for Financial Stability.

Mr. Gabr is the Chairman and a founding member of Egypt’s International Economic Forum, member of the International Business Council of the World Economic Forum, and Board Member of Stanhope Capital. Mr. Gabr is Member of the Metropolitan Museum’s International Council and serves on the Advisory Board of The Middle East Institute and the Global Advisory Council of the Mayo Clinic.

Mr. Gabr was previously the Chairman of COMESA (Common Market for East and South Africa) Business Council and a member of the Executive Board of the International Chamber of Commerce (Paris), and served on the advisory boards of Zurich Financial Services and The Paul H. Nitze School of Advanced International Studies (SAIS). Furthermore, Mr. Gabr was a founder of the American Chamber of Commerce in Egypt in 1982, serving as its first Egyptian President from 1995 until 1997. He was a Founding Member of the Wilson Global Advisory Council.

Mr. Gabr ranks among Arabian Business and The Middle East magazines 2012 “Most Influential Arabs” and “Our Top 50 Arabs”. In 2009 Mr. Gabr was presented with the Foreign Policy Association’s (FPA) award for Corporate Responsibility. In June 2014 Mr. Gabr was awarded the Meridian Global Citizen Award and in November 2014 the Middle East Institute’s Visionary Award. In March 2015 Mr. Gabr received the American University in Cairo’s Global Impact Award in New York. In May 2016 Mr. Gabr was awarded the College of Mount Saint Vincent’s Saint Vincent de Paul Award and the Drew University’s Peacebuilder Award. In September 2017 Gabr received the Policy Direction and Leadership Award from the London Center for Policy Research.

Through the Shafik Gabr Social Development Foundation, Mr. Gabr is helping to improve elementary-school education in Egypt, introducing students to arts and culture and promoting sports and physical fitness for youth. In the area of higher education, Mr. Gabr is a major supporter of the American University in Cairo. The Foundation also developed a free medical-care system by providing “Medical Caravans”, for residents of underprivileged areas of Greater Cairo. The Foundation has established its first Medical and Social Development Center in Mokattam, Cairo, offering free medical and health services. In 2012 Mr. Gabr established in the US the Shafik Gabr Foundation which supports educational and medical initiatives plus launched in November 2012 the ‘East-West: The Art of Dialogue’ initiative (see www.eastwestdialogue.org) promoting exchanges between the US and Egypt with the purpose of cultural dialogue and bridge building.

Mr. Gabr holds a BA in Economics and Management from the American University in Cairo and an MA in Economics from the University of London.

CFS is an independent, nonpartisan think tank focused on financial markets – with business lines presently segmented into the future of finance, data and analytics, policy, and technology. The Center for Financial Stability was created before financial stability became widely recognized in the private sector as an essential factor in central banking and policy. CFS has successfully and consistently anticipated future financial market trends over the years with an ahead-of-their-time approach to the early identification of financial risks. CFS has developed data and analysis to improve the study of financial markets. CFS maintains a global reach with participants from over 187 of the 195 countries in the world. CFS prides itself on integrity, long-term relationships, and independence.

View the press release at http://www.centerforfinancialstability.org/news/Gabr_press_release_121020.pdf.