Bloomberg Businessweek reporter Peter Coy spotlights how the loss of several people close to Prof. Andrew Lo inspired him to explore how the field of finance could help advance treatments for orphan diseases. “Finance plays a huge role, sometimes way too big a role, in how drugs get developed,” says Lo. Fixing the financing model, could have a “tremendous, tremendous impact on health care.”
Bloomberg reporters Benjamin Bain, Jennifer Epstein and Robert Schmidt spotlight the work Prof. Gary Gensler, who has been nominated as the next chair of the Securities and Exchange Commission. Gensler “not only knows how to mobilize a bureaucratic federal agency but also understands the often impenetrable ways that Wall Street makes money -- and how firms use that complexity to turn regulation in their favor.”
President-elect Joe Biden has selected Prof. Gary Gensler to serve as the next chair of the Securities and Exchange Commission, reports Marcy Gordon and Zeke Miller for the AP. Gensler “was an assistant Treasury secretary in the Clinton administration and later headed the CFTC during Barack Obama’s term. With a background of having worked for nearly 20 years at Wall Street powerhouse Goldman Sachs, Gensler surprised many by being a tough regulator of big banks as CFTC chairman.”
NBC News reporter Martha White writes that Prof. Gary Gensler has been selected as President-elect Joe Biden’s nominee to lead the Securities and Exchange Commission. “Gensler is a terrific choice to head the agency," said Barbara Roper, director of investor protection at the Consumer Federation of America. "He’s as knowledgeable about the markets as anyone on Wall Street, so he can’t be intimidated. He’s a seasoned regulator who knows how to get things done.”
Prof. Gary Gensler will be the Biden administration’s pick to lead the Securities and Exchange Commission, reports Matthew Goldstein, Lauren Hirsch and Andrew Ross Sorkin for The New York Times. “Mr. Gensler is a veteran regulator who played a central role in bringing the big banks to heel in the aftermath of the 2008 financial crisis, giving new teeth to a watchdog agency.”
Visiting Prof. Jordan Nickerson speaks with Stephen Duber of Freakonomics about his new study that explores whether car seat laws have contributed to declining birth rates. “The prediction would be that when I have two children that are both required to be put in car seats, it’s going to make it more difficult to have a third child,” Nickerson explains.
Joseph Coughlin, director of the MIT AgeLab, speaks with Jason Bisnoff of Forbes about how financial advisors should stay engaged with their clients during the Covid-19 pandemic. “If you haven’t had these conversations, you have not displayed that you care about these clients and, by the way, this is the new normal,” says Coughlin.
Senior lecturer Edward Golding speaks with Bloomberg’s Caroline Hyde, Romaine Bostick and Joe Weisenthal about a new study he co-authored, which finds that Black Americans pay more for their homes.
Bloomberg reporter Yalman Onaran writes that a new study by MIT researchers finds that Black homeowners pay more over the life of a home loan, hurting their ability to save for retirement. “The biggest reason for the gap is the risk-based pricing found in most U.S. mortgages, which disadvantage Black borrowers because they tend to make smaller down payments and have lower credit scores,” writes Onaran.
A new study by MIT researchers finds that Black Americans pay more than any other group to own a home, reports Anna Bahney for CNN. "The small differences compounding over the life of the mortgage and during home ownership can add up," explains Senior Lecturer Edward Golding. "Even if it is a few hundred dollars a year here and there, it can amount to another year's salary families would otherwise have."
A new study by MIT researchers finds that Black homeowners in America continue to have to pay more to own a home, reports Reuters. The researchers found that “the annual difference of $743 in mortgage interest payments, $550 in mortgage insurance premiums and $390 in property taxes, when invested over 30 years results in lost retirement savings of $67,320 for Black homeowners.”
Researchers from MIT’s Digital Currency Initiative are teaming up with Boston’s Federal Reserve Bank to build and test a hypothetical central bank digital currency, reports Vipin Bharathan for Forbes.
In an excerpt from his new book published by The Atlantic, Prof. Thomas Levenson explores how even famed scientists such as Sir Isaac Newton are not immune to making disastrous financial decisions. “When financial markets offer the temptation of ever-rising values, not even the smartest people can resist,” writes Levenson.
Reuters reporter Ann Saphir writes that Prof. Athanasios Orphanides recommended the Federal Reserve adopt a new monetary policy rule to help guide decisions concerning interest rates. “Monetary policy is most effective when it is formulated in a systematic manner, following a clearly communicated monetary policy rule,” Orphanides explains.
Research by Prof. Athanasios Orphanides examines the Federal Reserve’s efforts to improve communications, reports Nick Timiraos for The Wall Street Journal. Orphanides found “the quarterly summary of economic projections from Fed officials and its accompanying interest-rate projections, sometimes referred to as a ‘dot plot,’ would be more valuable if it expressed changes in officials’ uncertainty or confidence in their projections.”