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How Bank Culture Drives Success

In Articles on July 1, 2015 at 1:01 am

Two years ago, Adam Grant became famous with a very big idea: that generosity toward others gets you farther in business than selfishness. Grant’s basic argument is simple: There are three kinds of people in the world, givers, takers and matchers (those whose dominant style is determined by whether they’re dealing with a giver or a taker). Crude intuition suggests that in a cutthroat world, takers get ahead. Grant marshals evidence from psychology and behavioral economics to suggest that on the whole, givers have an advantage—especially over the long run, when true colors eventually show.

At just 31 years old—already the youngest-tenured and highest-rated professor at the University of Pennsylvania’s Wharton School and an instructor at ABA’s Stonier Graduate School of Banking—Grant published Give and Take: Why Helping Others Drives Our Success to wide acclaim.

Senator Wants to Play Airline Executive

In Articles on June 29, 2015 at 12:34 pm

Are airlines unfairly conniving to keep capacity low and thus drive up fares? According to Senator Richard Blumenthal, a Connecticut Democrat, they are—and he’s asked the Justice Department to investigate.

Unfortunately for airlines and their passengers, Blumenthal has succumbed to a particular Washington, D.C., affliction: thinking he can run a business better than the people actually running it. If they had their druthers, Elizabeth Warren would moonlight as a banker, Joe Barton as a college sports administrator, Jay Rockefeller as an oil company executive, and Hank Johnson as a geographer.

Based on a New York Times report on an airline industry meeting, Blumenthal is concerned that “many of these [airlines] publicly discussed their strategies to remain ‘disciplined’ in their decisions to manage capacity across their flight routes.”

The Birth of the American Bankers Association

In Articles on May 1, 2015 at 8:00 am

A massive construction bubble, driven both by speculative investments and government subsidies. Investment houses with excessive leverage in that very same construction bubble. A stock market crash, a spike in unemployment, global panic, a wave of domestic bank failures and resounding political consequences.

If this scenario recalls to you the past several years, then you’ll well understand the drama into which the American Bankers Association was born in 1875.

The construction bubble had been in railroads, whose growth had been jumpstarted by the completion of the first transcontinental line in 1863 and the need for rebuilding after the Civil War. From 1868 to 1873, more than 30,000 miles of new track were laid, and speculators piled into railroad stocks.

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