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FORGOTTEN FINANCE 101 - James S. Chanos

Using yesterday's lessons to survive the Credit Crunch and thrive in tomorrow's markets

Today, Congressional hearings into credit crunch causes and solutions continue their  drift. Vested interests repeatedly parrot "now we know what went wrong, give us a do over". Regula tors blame products and practices [credit default swaps, short selling, etc] and/or  cheerlead specific remedies to "bring the debt market back" to 2006, when ABS issue volumes reached record levels. Seemingly, we are no closer to ensuring $3 trillion + losses never happen, again.

Somehow fundamental, elementary, Finance 101 lessons vanished from memories - of bankers, auditors, rating agencies, regulators, institutional investors and academics -- in the lead up to the credit crunch. Inexplicably, many mistook Structured Finance equity risk for near riskless debt. Others considered all "AAA" borrowers the same and were bamboozled by Form over Substance. Too many neglected foundational underwriting in favor of buying "on ratings".

After bailouts since 2008, the US government is now  lender - shareholder - guarantor - regulator and legislator; simply and simultaneou sly: player, coach, team owner, league commissioner and referee -- in "banking's new normal". Almost as an afterthought, US monetary base exploded an unprecedented  120+ % since 2008 portending dollar instability, inflation and market volatility going forward.

Join us as our panel of early Structured Finance critics discuss Finance 101 - and  how its lessons help us survive and thrive in "banking's new normal".

PANELISTS:

Jim Chanos: Kynikos Associates, Hedge Fund founder. Famously successful short seller who spotted Enron. 

http://en.wikipedia.org/wiki/James_Chanos       

Diane Garnick: Investment strategist for Invesco, where she directs the firm's Global Investment Solutions an d Research team. Previously, she was a global derivatives strategist at Merrill Lynch.

http://en.wikipedia.org/wiki/Diane_Garnick     http://www.dianegarnick.com/    

Margaret M. Cannella: Named to the Fixed Income analyst Hall of Fame in 2007 for her publications on the credit crisis while at JP Morgan where she built U.S. Equity and Global Credit Research; both currently rank number one in the Institutional Investor Survey Currently, Adjunct Professor at Columbia Business School

Ed Grebeck: Chief Executive Officer, Tempus Advisors. NYU Professor, including Credit Derivatives Trading Products (CDS 101)

Bio's are below.

Date: Tuesday, April 27thth

Time: 6:00 PM to 8:00 PM

Program:

6:00 to 6:30 Reception and Networking
6:30 to 7:30 Remarks and Q&A

Location:

200 Park Avenue, 13th Floor. Met Life Building (Above Grand Central Terminal) 

PHOTO Identification is Required

Cost:  BGS-NYC Members, NYU Alumni, StamSteer, MBA Corps members - $20

          Non members: $25

REGISTER Here

PANELISTS:

James S. Chanos: 

Jim Chanos is the founder and Managing Partner of Kynikos Associates. As the largest exclusive short selling investment firm, Kynikos provides investment management services for both domestic and offshore clients.  Through investment funds, partnerships, corporations and managed accounts, both domestic and offshore, Kynikos Associates maintains private portfolios of securities for clients. The funds, Ursus and Kynikos Opportunity, attempt to profit from the unusually high alphas found on the long and short side of the U.S. and non-U.S. equity markets.

Mr. Chanos opened Kynikos Associates in 1985 to implement investment strategies he had uncovered while beginning his Wall Street career as a financial analyst with Paine Webber, Gilford Securities and Deutsche Bank.  Throughout his investment career, Mr. Chanos has identified and sold short the shares of numerous well-known corporate financial disasters: among them, Baldwin-United, Commodore International, Coleco, Integrated Resources, Boston Chicken, Sunbeam, Conseco and Tyco International.  His celebrated short-sale of Enron shares was recently dubbed by Barron's as "the market call of the decade, if not the past fifty years."

Born and raised in Milwaukee, Wisconsin, Mr. Chanos currently lives in New York with his four children and is active in many charitable foundation and educational institutions. Mr. Chanos received his BA in economics and political science in 1980 from Yale University .

http://en.wikipedia.org/wiki/James_Chanos              

Diane Garnick:         

Investment Strategist, Invesco Ltd.

Diane Garnick is the Investment Strategist at Invesco Ltd. and author of the upcoming book I'm Smarter Than My Boss. Now What? With more than 20 locations and 5,000 employees worldwide, Invesco is one of the largest independent global investment managers.

Garnick is a frequent contributor on national and international television stations, such as CNBC, Bloomberg TV and FOX News. She is a sought-after keynote speaker at industry events throughout the United States, Europe and Asia , where she draws in large audiences hoping to he ar her market insights and improve their own careers. She has over 15 years of investment experience focusing on asset allocation strategies designed to provide financial security in retirement.

Garnick's ascent on Wall Street began in the 1990s when she was working for Deloitte on a project for Merrill Lynch. Merrill Lynch offered her a job and suddenly, a mere three years after earning her degree, Diane was named the Global Equity Derivatives Strategist at Merrill Lynch.

Today Garnick works closely with Chief Executive Officers, Chief Investment Officers and Trustees of the world's largest pension plans and social security systems to help them understand the implications of their investment decisions prior to being implemented.

She has authored hundreds of reports that focus on portfolio construction, volatility, corporate actions, equity indices, exchange traded funds ("ETF s"), futures, options, accounting and taxation.

Garnick's writing style has been described as "translating math into English" by Pensions & Investments. She brings complex investment theories into the reach of many decision makers. Her tireless efforts have helped improve the risk-return profile of thousands of pension plans. She is frequently called "The Pension Princess" by TV show hosts.

Garnick is one of the growing number of Wall Street executives who have transitioned from being world class financiers to world class philanthropists. She is the founder of the Ladies in Red, a charitable organization with the simple mission of providing an opportunity for anyone, anywhere, to make a meaningful contribution to society.
 
http://en.wikipedia.org/wiki/Diane_Garnick             

http://www.dianegarnick.com/     

Margaret M. Cannella: 

For the past three years, Margaret Cannella has been an Adjunct Professor at Columbia Business School, teaching a seminar entitled "Private Equity, the Credit Markets and Alternative Investments." In addition, she is on the board of Pierre Foods, owned by the private equity firm Oaktree Capital and teaches leveraged finance in the Federal Reserve System and at JPMorgan.

In 2009, Margaret retired from JPMorgan after more than thirty years in financial services in the United States and abroad. At JPMorgan, she built U.S. Equity and Global Credit Research; both currently rank number one in the Institutional Investor Survey. She chaired the firm's capital markets strategyfunction an d also represented the industry on SIFMA's committees dealing with regulations related to research and banking.

Margaret herself was named to the Fixed Income analyst Hall of Fame in 2007 for her publications on the credit crisis. For more than thirteen years, she was ranked number one or number two among fixed income analysts covering the retailing and consumer products sectors by Institutional Investor magazine. During the credit crisis, and as head of US Equity and Credit and then head of Global Credit Research, Margaret acted as a spokesperson for the firm, frequently speaking at conferences and in the press and publishing on capital markets developments for investor clients around the world.

Margaret joined JPMorgan from Citigroup in 1998, where she built, de novo, the global research platform, extending it to cover corporate bonds, foreign exchange, emerging market and economics research. She improved the ra nkings of these research groups from number twenty three to number five over five years. Prior to becoming a Research Director and Senior Analyst, Margaret was part of a group called the Corporate Finance Analysis Division, which worked closely with bankers to upgrade their skills while simultaneously undertaking complex transactions.

Margaret was also a management consultant at the MAC Group and at Bank Street Consulting firm focusing on financial institutions' clients. She began her career introducing merchant banking products to financial institutions clients of Chase Manhattan in Southeast Asia .

Margaret is a graduate of Princeton University with an A.B. in East Asian Studiesand a graduate of the Columbia University Graduate School of Business with an MBA in finance. She is past Chair of the board of the Princeton-in-Asiafoundation, and is a current trustee of that organization. She is joining the board of CH F International, a joint venture of the IFC and CHF, a microfinance institution focused on the Middle East . Margaret also chairs the Women in Leadership Group for Princeton University , working closely with fellow alumnae and the largest donors to the University.

Ed Grebeck:

Chief Executive Officer, Tempus Advisors-- global capital markets strategists. NYU Professor.

Mr. Grebeck: A corporate banker, re insurer and portfolio manager who built businesses at major institutions and boutiques in the financial services industry, in the US and emerging markets, for over 20 years. He managed teams across all capital market functions: origination, underwriting, portfolio management, treasury funding and workout. JPMorgan Chase, GE Capital and Employers Reinsurance are names you would know.  He has an MBA from Columbia and a BS from Cornell. < /p>

Last 3 Years: Ed is one of a handful of people in the world to demonstrably warn of today's Credit Crunch and suggest alternatives to profit, despite it. In April 2006, he was the first to ask: "Why... Invest in CDOs, at All?", . a prescient warning of Structured Financeilliquidity, conflicts of interest, flawed pricing models and today's trillion dollar losses.     

www.riskcenter.com/video.php?vid=grebeck2-29-1

In 2007, he spotlighted endemic Conflicts among Rating Agencies, Investment Banks and Bond Insurers and pervasive Structured Finance Mispricing as major causes of today's $3 trillion + losses and systemic riskto the world's financial markets.

http://www.huds on.org/index.cfm?fuseaction=hudson_upcoming_events&id=503

Today, Structured Finance Banks depend upon government for survival. Issuer-Oriented Rating Agency business models are irreparably damaged. Bond Insurers' share prices are under the bus. Ed Grebeck is frequently cited as an early critic of SF and expert source in the media.

http://www.cezarysalad.com/blog/chanos-on-the-financial-crisis-and-how-it-made-me-think-differently/2009/05/17/

Ed's wide ranging, yet extensive drill down experience, produces INSTITUTIONAL MEMORY. Asset managersrely on him to identify opportunities and anticipate challenges to their investment objectivesarising from the credit crunch impacting the global capital markets.

Mr. Grebeck teaches &q uot;Credit Default Swaps 101" at NYU.  Over 200 students, in 9 consecutive terms, have gained unique perspective: how banking changed from 1980 to today ["everything trades"] and what lies ahead.

Mr. Grebeck undertakes client-directed, confidential, research that extracts value from tomorrow's opportunities as capital markets change, today.

REGISTER Here

http://www.mbacorps.org/eventcia.htm


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