Significance and limitations of the VAR figures publicly disclosed by large financial institutions.

The value-at-risk (VAR) figures publicly disclosed by the major banks provide useful information on the market risk taken by the banking system. But a number of methodological precautions need to be taken when analysing these figures. These are detailed in this article. The assumptions underlying VAR calculations can, indeed, differ from one institution to the next and are rarely very explicit. The conclusions to be drawn from these figures should therefore be treated with caution. The information provided by disclosed VARs should be corroborated by other indicators and analysed against the general macro-fi nancial backdrop. When they point to greater risk exposures, these figures act as warning signals for conducting more in-depth analyses of the vulnerabilities that could affect financial stability. VAR figures disclosed by financial institutions are closely monitored by central banks and are, for example, often discussed in the overview of the Banque de France’s Financial Stability Review. These figures have contributed to supporting our assessment of a rise in market risk exposures at the time when short-term interest rates were uniformly very low, before the Fed started raising its key rates, which called for heightened vigilance even though the macro-financial context appeared favourable. Central banks’ constant concerns about greater transparency on the part of financial institutions resulted in the publication of the Fisher II report. In this framework, one way of strengthening financial stability would be to encourage credit institutions to be more transparent as regards their methods for calculating disclosed VARs. Credit institutions could, for instance, include more precise and easily comparable methodological explanations in their annual reports. This should not prevent the leading banks from setting up more sophisticated risk management techniques nor impinge on their communication policy. By authorising banks to use – subject to validation – an internal ratings-based approach for calculating their regulatory capital requirements, banking supervisors have actually acknowledged at the international level the diversity of markets and operations carried out by banks. This diversity implies adopting calculation methods tailored to the specificity and management techniques of each bank. Banks should in fact provide analysts with the most relevant information possible. But, in view of current practices, the level of transparency as regards the methods used is still insufficient. In addition, financial institutions other than banks, for example hedge funds, should also be encouraged to disclose their VAR figures. Lastly, financial institutions should disclose their stress tests on a more regular basis, as a methodological complement to the VAR figures, but also in order to prevent a potential homogenisation of behaviours which could result from an exclusive use of VARs in banks’ communication strategies.

Financial stability issues arising from current risk premia configurations and dynamics.

One of the major financial stability issues, we currently need to focus upon, relates to risk premia dynamics. Recent market turbulences have indeed, once more, shown that such dynamics can change quickly. True, the well known long term interest rates conundrum, highlighted by M. Greenspan, might appear less crucial an issue in 2006 than in 2004/2005. But several other market configurations appear puzzling. First, long term interest rates remain relatively low at this stage of the cycle. However, the jury is still out regarding the question, whether low term premia will be permanent. Second, credit markets remain buoyant, with very aggressive pricing. Low credit spreads often only match average historical rates of default without providing additional risk premium. A benign scenario can obviously account for such a configuration, but this is only one scenario among many other more risky ones. Third, the contrast with high equity risk premia is puzzling. In the past, at the specific time when excesses from previous bubbles had to be wiped out without too much damage to economic growth, the decrease in credit spreads in the face of high equity risk premia might have served financial stability. But, currently and for the longer term, these advantages seem less clear. Higher credit risk premia premia might indeed bode better for future financial stability. Fourth, recent market tensions have highlighted some vulnerabilities. This should lead us i) to remain cautious in our assessment of potential future short term market dynamics and ii) put on top of our agenda an enhancement of the resilience in face of longer term vulnerabilities. Risk premia move constantly because of changes in fundamental factors as well as in risk appetite. This often smoothly contributes to financial stability. However some characteristics of the present environment could make such adjustments challenging in the future. First, less accommodative global liquidity makes financial market dynamics more complex to predict. Second, bank lending standards might be looser than in a steady state. If credit standards are finally tightened more strongly, this would benefit financial stability in the medium term. But the transition includes challenges for borrowers which have relied on cheap credit in recent years. Third, cyclical lows on financial market volatility might be behind us. Fourth, financial institutions risk management often relies on fragile diversification related assumptions. This makes sense in a stable environment, when correlations do not change quickly. However, diversification might not protect as expected in time of stress. And a quick unwinding of positions is not always possible. Fifth, model risk remains a field where improvements are needed in order to strengthen financial stability over a full financial cycle. The main market related risks, in a context of less ample global liquidity, include changes in risk aversion and risk premia, with the potential for a breakdown in traditional correlations. If significant portfolio reallocation flows take place, market liquidity issues have the potential to transform vulnerabilities into financial instability. These risks might not be perfectly captured by some risk models currently used by financial institutions (including stress-tests). The main financial system related risks include the scenario in which financial institutions would not decrease sufficiently their search for yield in the future, in an environment where higher expected returns could be subject to increased risks. We can certainly envisage an ideal exit scenario in term of financial stability. However, risk premia are not controlled by any single institution and are subject to complex and uncertain dynamics. In fact, financial market dynamics might be more challenging in the future than in recent years. Financial institutions should therefore continuously enhance their resiliency in face of the variety of potential scenarii. The various conditions which can prevail during a full economic and financial cycle need to be seriously taken into account. This means that financial institutions should continue to ensure to avail of sharp risk management practices, emphasising the cases when risks (unfortunately) materialise over the short term, even for those risks which are often relegated to long term scenarii. They should also increase their sensitivity to the potential difficulty of a quick unwinding of some positions in difficult market conditions. The risks, that we highlighted, certainly warrant i), at the micro level, a monitoring of financial institutions risk management and ii), at the macro level, of the dynamics behind potential crowded trades. It is the role of central banks and all public authorities, individually and in co-operation, to foster a risk cycle management oriented attitude, which allows combining the advantages of real and financial innovation with financial stability and sustainable growth.

Death of human tumor endothelial cells in vitro through a probable calcium-associated mechanism induced by bevacizumab and detected via a novel method

We isolated three dimensional cell clusters from fresh human solid tumors and also isolated human neoplastic and normal lymphatic cells. Cells were cultured for 96 hours with and without bevacizumab and other agents. At concentrations of bevacizumab which completely removed VEGF from the culture medium, dead microvascular cells were detected through Fast Green/H&E staining as previously described. These peculiar staining characteristics suggested the involvement of calcium, and this was confirmed through staining with Alizarin red S. Using Alizarin staining as a marker for endothelial cell death permitted the use of public domain image analysis software which resulted in a sensitive and specific system for identifying active pharmaceuticals which target the tumor microvasculature at the same time direct antitumor cell effects are determined. Our results suggest an important role for calcium in endothelial cell death mediated by bevacizumab and other agents and further suggest that agents promoting calcium influx may potentiate the activity of antiangiogenic agents

Creative Freedom: Arts Entrepreneurship as a Mindset

Prospective art and design students have little doubt that entering the creative sector is their purpose and calling. However, one of the main concerns for students and their fami-lies when deciding whether to enroll in a specialized college is the ability to earn a living wage upon graduation. Colleges and universities, particularly art and design schools, respond to this concern by increasing access to arts entrepreneurship programs. Arts entrepreneurship offerings provide practical guidance students can apply in business development and more broadly while seeking financial self-sufficiency working in the creative sector. This essay offers insights into how faculty teaching arts entrepreneurship courses can best engage students in colleges of art and design. Specifically, this writing explores the unique dynamics of an art and design college and how the fundamental practices of these institutions can inform arts entre- preneurship educators in their classrooms. First, I consider the role of self-reflection in the development of artists and designers. Next, I explore how critical thinking and creative problem solving are present in art and design curricula. Then I reference the core practice of critique, which is present across creative disciplines in art and design pedagogy. Last, I conclude that when considered together, self-reflection, critical thinking, creative problem solving and critique all connect with teaching core entre- preneurial theories, methods and skills to prepare art and design students for a financially sustainable creative life after college

Bursting the Bubble: The 1988 “Ghetto Party” and DePauw’s Problem with Diversity

This paper will delve first into the background information surrounding race relations at the national level, collegiate level, and at DePauw. Next, the paper will investigate how the University started to recruit minority students and faculty as a precursor to campus culture in the 1988-89 academic year of the party and its aftermath. How white people reacted to the event will be put into conversation with Barbara Applebaum’s book, Being White, Being Good. The book tackles how and why white people believe themselves to either be non-racist or unaware of their racist actions. In tandem with The DePauw articles that highlight frustration surrounding the continued coverage of the “Ghetto Party”, the book adds a nuanced, layered argument to the why the racism of the party persisted months after the event occurred. Finally, this paper will end with exploring the origins of black Greek Life on DePauw’s campus and how the “Ghetto Party” had a role in shaping its arrival in the spring of 1991. The party was a culmination of DePauw’s emphasis on diversifying the community combined with students’ lack of racial sensitivity that led to black students forming spaces for their own culture on campus

The role of trust within the sharing economy and how it can be increased

Trust is seen as a prerequisite for any relationship, so it plays a crucial role in the sharing economy. Technology has made it possible for peers which have never met before to now trust each other. However, trust is still seen as a major barrier to participate in the sharing economy. Sharing economy platforms try to overcome this obstacle by so called trust-increasing measures such as ratings, reviews etc. The effectiveness of such measures has yet not fully been researched. Most studies were conducted in the United States and focused on specific measures in the context of specific sharing platforms. Furthermore, only limited research about new tools is available. These major gaps in existing research call for additional studies providing a larger picture on the effectiveness of trust-increasing measures. Therefore, this thesis examines the effectiveness of several already established, but also new tools that P2P sharing economy platforms can use in order to increase trust. The analysis focused on the trust building relation from a consumer perspective towards the private offeror of a product/service. The thesis provides information to startups and already existing sharing platforms about the importance of trust and how it can be increased. The analysis has shown that the importance of trust is perceived at a higher level if peers take the role of the offeror of the product/service rather than being on the consumer side. Furthermore, it plays a crucial role if the shared product or service touches the private sphere or not. The study also revealed that trust-increasing measures can be highly effective. This can be observed by the fact that people can trust a host from a sharing economy platform more than their neighbor or colleague. It became apparent during the study that conventional trust-increasing measures such as verification of the identity, the offeror’s certificates (i.e. trusted host), ratings, reviews etc., had a strong positive effect on trust. Links to social media accounts of the offeror had the smallest effect on trust. Additionally, the study made clear that the effectiveness of trust-increasing measures also depends on various other characteristics and features

Justice Sotomayor hits the high court-what about empathy?

In lieu of an abstract, below is the essay\u27s first paragraph. The US Supreme Court return to work this week, Justice Sonia Sotomayor begins her first term, and the highly charged debate over empathy is, for the moment, dormant

Sex-Related Alcohol Expectancies And Perceptions Of Sexual Assault: Recognition Response Latency And Blame Attribution

Alcohol use has often been linked with sexual violence. Pumphrey-Gordon and Gross (2007) note that “among the numerous factors that have been associated with the occurrence of sexual assault, the use of alcohol is the most reliable” (p. 476). Novel autonomy places undergraduates at a nexus alcohol use and sexual experiences, as well as the potential negative consequences of both. This confluence of factors contributes to proportionally higher rates of risky sexual behaviors and sexual assaults among undergraduates. Alcohol expectancies, beliefs about the outcomes and consequence of drinking alcohol, have been shown to influence drinking behaviors, which have, in turn, been linked with higher rates of sexual activity and an increased incidence of sexual assault. (Goldman & Roehrich, 1991; Cooper, Frone, Russell, & Mudar, 1995). Individuals’ endorsements of sex-related alcohol expectancies (SRAE) have also been demonstrated to be predictive of various potentially detrimental behaviors such as increased drinking, and risky sexual behaviors. However, research regarding the role of SRAE in people’s perceptions of sexual violence as third-party observers is scarce. The purpose of this present investigation is to build upon extant sexual assault literature related to alcohol consumption, AE, SRAE, and perceptions of sexual violence, with a particular emphasis on response latency (how quickly individuals are able to recognize assaultive behavior) and victim blame attribution. This study evaluated the relationship between AE, SRAE, and perceptions of sexual assault using an audio vignette depicting an acquaintance rape (Marx & Gross, 1995). Measures assessing demographic factors, alcohol consumption patterns, AE, and SRAE were employed. Participants listened to the audio vignette depicting a sexual assault, which was prefaced as either involving alcohol or not involving alcohol, and were instructed to indicate when during the vignette the encounter had become inappropriate. They subsequently completed measures assessing blame attribution related to the vignette. It was expected that AE would account for unique variance in predicting response latency and victim blame attribution, after controlling for demographic factors, alcohol context, and drinking habits. It was also expected that SRAE would account for unique variance in response latency and victim blaming after all factors and AE were controlled for. These hypotheses were tested using hierarchical multiple regression analyses for response latency and victim blame models using the following steps: demographic factors (step 1), drinking habits (DDQ; step 2), alcohol context (step 3), AE (AEQ; step 4), and SRAE scores (AEQ SRAE subscale; step 5). Findings indicate that, for response latency, AE was the only variable which was a unique predictor. For victim blame, demographic variables, alcohol context, and AE were all identified as unique predictors. SRAE were not found to account for unique variance in either model. Implications of findings are discussed

Palestinian Refugee Camps: From Shelter to Habitat

Palestinian refugees registered with UNRWA and their housing conditions are officially characterized by a "temporary status”, a situation which has lasted the past sixty years. This article explores this time-paradox by focusing on the host governments' and UNRWA's policies affecting the refugees' housing conditions. After having reviewed available literature, this contribution analyses the current housing situation. Drawing on data from a recent survey, the authors provide insights on areas where intervention is needed. In all UNRWA's fields of operation, overcrowding, lack of public spaces, humidity and structural defects are the main sources of housing discomfort that camp refugees endure. Host countries' restrictions as well as the incapacity or unwillingness of larger urban municipalities to incorporate refugee camps in their master plans are among the main obstacles to the refugees' housing development. Rehabilitation and self-help re-housing programs may offer substantial incentives for housing improvement. The success of such programs depends, among several factors, on the host governments' good will to provide UNRWA with authorizations, financial support, and land, as well as on the capacity of involving the refugee communities in projects' planning and implementatio