Strategy Driven

MARCH 6, 2014

For what lead Life & Fire’s directors to commit fraud in the first place was in part driven by a desire (so they claimed) to extend credit to high-risk borrowers being ignored by traditional banks. Why was an insurance company doing a bank’s work? Both crises proved it’s not.

Insurance 52

Insurance Banking Crisis Discount 52

Harvard Business Review

SEPTEMBER 16, 2014

And limited credit is in part caused by the difficulty of predicting which small businesses will and won’t succeed. In the past, a community bank would have a relationship with the businesses on Main Street, and when it came time for a loan, there would be a wealth of informal information to augment the loan application.

Credit Scoring 11

Credit Scoring Banking Dunning Metrics 11

Harvard Business Review

SEPTEMBER 16, 2014

And limited credit is in part caused by the difficulty of predicting which small businesses will and won’t succeed. In the past, a community bank would have a relationship with the businesses on Main Street, and when it came time for a loan, there would be a wealth of informal information to augment the loan application.

Credit Scoring 8

Credit Scoring Banking Dunning Metrics 8

Harvard Business Review

JANUARY 7, 2014

The boom-bust tendencies of Wall Street mean we need tougher capital requirements for banks, Greenspan now says, and maybe even a forced return to the partnerships that once dominated investment banking. It was the form in which the asset was financed. And I say a bubble. Well the question is, do you quash the bubbles?

Long-term 12

Long-term Banking Short-term Finance 12

Harvard Business Review

APRIL 5, 2012

Serodio thought a post I had written citing the complaints of former European Central Bank chairman Jean-Claude Trichet and author Jonathan Schlefer was too dismissive of modern macro, in particular the dynamic stochastic general equilibrium (DSGE) models that dominate academic and central bank macro research.

Banking 13

Banking Real Estate Crisis Policies 13

Harvard Business Review

NOVEMBER 8, 2012

Prototypically, a bank officer would make credit decisions for applicants based on the applicants' "character" — which church they attended, which school their kids were in, etc. With fairly few signals in their models, the FICO score doesn't have the ability to distinguish between credit risk in a generally high risk group.

Credit Risk 9

Credit Risk Credit Scoring Retail Technology 9