Thursday, January 8, 2009

Fama On Bank Recapitalization

There were many factors to consider when choosing an MBA program, but the truth is that I settled on the University of Chicago because that's where I could study under Eugene Fama. The two classes I took with him have proven well worth the price of admission (I am not receiving a referral fee from the University).

Fama has recently started a blog (with his colleague Kenneth French) which is the latest addition to my must-read list. His most recent piece on bank recapitalization discusses the impact that various forms of equity injections have on the U.S. taxpayer and bank stakeholders. It's not the lightest read, but he makes some very good points.

Link to article

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