125th Anniversary Faculty Tour
Richard J. Herring
Jacob Safra Professor of International Banking; Professor of Finance
Richard Herring is a leading global expert on banking and finance. A consultant to banks around the world - including the US Federal Reserve Board and the International Monetary Fund - he specializes in issues of risk and stability in banking, including: real estate bubbles, credit risk, bank failures, liquidity shocks, and banking regulation. He is co-director of Wharton's Financial Institutions Center and was vice dean and director of Wharton's Undergraduate Division and director of the Joseph H. Lauder Institute of Management and International Studies. He is a winner of Wharton's David Hauck Award for Outstanding Teaching and a three-time winner of the Undergraduate Division Excellence in Teaching Award. To read Professor Herring's full profile, click here.
In his own words…
""Why were banks willing to bet so heavily on rising real estate prices? The process is quite insidious. Because real estate lending has often been relatively problem-free for a considerable period, lenders feel that they can reduce loan-to-value ratios and lower risk premia and fees without taking greater risk. This is an example of a more general phenomenon that has been studied extensively by cognitive psychologists. A broad range of evidence indicates that people tend to underestimate the probability of a disaster when a very long time has passed since that last occurrence.""
Read about Richard J Herring's research in Knowledge@Wharton:
- LSE, NYSE, OMX, Nasdaq, Euronext ... Why Stock Exchanges Are Scrambling to Consolidate
- The Merrill Lynch-BlackRock Deal Signals Major Shift in Financial Services
- Linking up a Hedge Fund, a Revolution and the Fall of the Berlin Wall
- The Ballooning Credit Derivatives Market: Easing Risk or Making It Worse?
- Euros, Dollars, Sukuks and Yuans: Uncertainty Reigns in Global Financial Markets