Word: scharfstein
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Stein’s return hardly marks the end of the line for Harvard’s presence in Washington. Yesterday, Business School Professor David S. Scharfstein began work with the administration. Scharfstein could not be reached for comment over the last week...
...about the same time as the Boston Fed piece came out, two finance professors at Harvard Business School, David Scharfstein and Victoria Ivashina, wrote a paper called "Bank Lending During the Financial Crisis of 2008." Scharfstein and Ivashina focused in on a database of new loans made to large corporations and documented a 36% drop during August-October 2008, as compared with the three months prior. They, too, argued that drawn-downs were artificially inflating overall lending figures. Yes, there was lending, but it was involuntary, and often to struggling companies - like GM and Tribune - that banks might not otherwise...
...that sort of involuntary lending mean that other potential borrowers were getting crowded out? In a rebuttal to the Scharfstein paper, Chari and his co-authors wrote that they hadn't seen any data showing that banks weren't lending to credit-worthy companies asking for loans simply because certain firms were tapping pre-existing credit lines. "The argument is if you're a new customer walking into a bank, it's impossible for you to get a loan," says Chari. "That story may be true, but there's no convincing evidence that's what's going...
...Scharfstein noted that Warren Buffet’s purchase of $5 billion of Goldman Sachs preferred stock was a step in the right direction...
...don’t think that banks will issue more equity without prodding from the government,” Scharfstein said...