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Archive for the 'Business' Category

Tuesday, November 18th, 2014

New Book Tuesday: Best Business Writing, Coney Island, and More!

The Best Business Writing 2014Our weekly listing of new titles now available:

The Best Business Writing 2014
Edited by Dean Starkman, Martha M. Hamilton, and Ryan Chittum

A Coney Island Reader: Through Dizzy Gates of Illusion
Edited by Louis J. Parascandola and John Parascandola

Inheriting Dance: An Invitation from Pina
Edited by Marc Wagenbach and The Pina Bausch Foundation

Art/Commerce: The Convergence of Art and Marketing in Contemporary Culture
Maria A. Slowinska

The Intelligible Metropolis: Urban Mentality in Contemporary London Novels
Nora Pleßke

Studying Early and Silent Cinema
Keith Withall

Talk Radio, the Mainstream Press, and Public Opinion in Hong Kong
Francis L. F. Lee

Understanding South Asian Minorities in Hong Kong
John Nguyet Erni and Lisa Yuk-ming Leung

Exploring Lung Fu Shan: A Nature Guide
Lung Fu Shan Environmental Education Centre

Thursday, October 30th, 2014

Lawrence Cunningham Discusses “Berkshire Beyond Buffett” at Google

In the following video from his talk at Google, Lawrence Cunningham’s discusses his new book Berkshire Beyond Buffett: The Enduring Value of Values:

Friday, October 24th, 2014

B*E*R*K*S*H*I*R*E — The Values of Warren Buffett

Warren Buffett, Berkshire Hathway

The following is a post by Lawrence Cunningham, author of Berkshire Beyond Buffett: The Enduring Value of Values:

Berkshire Beyond Buffett: The Enduring Value of Values tells the stories of Berkshire’s 50 significant direct subsidiaries, which define the company today, representing 80 percent of its value.

As I examined each, through archival research plus interviews and surveys, a pattern emerged: the same traits began to appear repeatedly, nine altogether. These intangible traits translate into financial gain. They also secure the company’s future, hence the book’s sub-title: The Enduring Value of Values.

Those nine values define the book’s central chapters, each chapter telling the stories of four or five subsidiaries that exemplify given values. After I organized and wrote the book, I played around with the nomenclature to form an acrostic from these values that spells out the company’s first name, as seen below, which also captures the essence of each and notes an illustrative subsidiary. The book then weaves these stories and values together to reflect what amounts to a profound succession plan.

B*E*R*K*S*H*I*R*E

Budget-mindedness
Essence: A penny saved is a nickel earned
Illustration: GEICO

Earnestness
Essence: The value in promise keeping
Illustration: Gen Re

Reputation
Essence: Results benefit from reputation
Illustration: Clayton Homes

Kin-like
Essence: Wealth can last more than 3 generations when families value identity and legacy
Illustration: Ben Bridge Jeweler

Self-starters
Essence: To the entrepreneur go the spoils
Illustration: Dairy Queen

Hands-off
Essence: Delegate everything but reputation
Illustration: Pampered Chef

Investor savvy
Essence: Price is paid, values are exchanged
Illustration: BH Energy

Rudimentary
Essence: Impossible dreams are impossible, so stick to your knitting
Illustration: Fruit of the Loom

Eternal
Essence: Berkshire as a permanent home, a Boys Town for the corporate homeless
Illustration: Brooks Running Shoe

Thursday, October 23rd, 2014

What Will Happen to Berkshire afer the Buffett Era? — Lawrence Cunningham

“What will enable the great company to endure beyond the Warren Buffett era, is Berkshire’s corporate culture.”—Lawrence Cunningham

Berkshire Beyond BuffettThe following post is by Lawrence Cunningham, author of Berkshire Beyond Buffett: The Enduring Value of Values.

What will happen to Berkshire Hathaway after the Warren Buffett era? The answer to that multi-billion dollar question lies in my book, Berkshire Beyond Buffett: The Enduring Value of Values, which lays out in detail Berkshire’s five-pronged succession plan with all its nuances and complexities. Here is a thumbnail sketch.

At most companies, succession planning focuses on grooming a senior manager who can assume the role of chief executive. Today you hear about who should succeed Jamie Dimon at JPMorgan and 15 years ago about who should succeed Jack Welch at General Electric. The personnel aspects of Berkshire’s succession plan are a bit more involved—although, despite enormous attention, they are also the least significant parts of its plan.

Buffett’s management roles will be divided into an executive function (CEO) and an investment function (CIO). The next CEO will come from among existing Berkshire executives, probably one of its 50 significant subsidiaries. This successor will get responsibility for Berkshire’s acquisitions and allocating capital. Chapter 9 of the book shows how many Berkshire managers excel in these areas, providing a wealth of managerial talent.

The second function is handling investments. Berkshire hired two people in the past half-decade—Ted Weschler and Todd Combs—for that job. They’ll face challenges ahead, including tough choices about when to sell big stakes and what to do with the proceeds. While still important, the investment side of Berkshire has greatly declined in significance in recent years, now representing only about 20 percent of its value.

Third, for board chairman, Buffett says he’d propose a member of his family, widely assumed to be Howard, his eldest son. That job would be to sustain the cultural heritage I outline in Berkshire Beyond Buffett. In an interview for the book, Howard noted that Berkshire is his father’s life’s work, and sustaining the legacy is vital to him.

(more…)

Tuesday, October 21st, 2014

Interview with Lawrence Cunningham, author of Berkshire Beyond Buffett

“Berkshire practices a philosophy of capitalism that does well by doing good, is sensitive but unsentimental, lofty yet pragmatic, and public-spirited but profitable.”—Lawrence Cunningham

Lawrence Cunningham, Berkshire Beyond Buffett

Question: What inspired you to write this book and what are some of its key implications?

Lawrence Cunningham: People have been asking for 20 years what happens to Berkshire Hathaway if Warren Buffett gets hit by the proverbial bus; the question now has added urgency since the billionaire businessman is 84. The popular answer became paradoxical: Buffett tried to build an enduring institution at Berkshire and yet even great admirers doubt that the company can survive without him. My book demonstrates how Berkshire’s corporate culture is designed to make the company outlast any one person, making the culture part of its succession plan.

Q: How did you research this book and what did your research reveal?

LC: Background research dates to the 1990s when I published The Essays of Warren Buffett: Lessons for Corporate America, based on a symposium with Buffett and Berkshire vice chairman, Charlie Munger. In that era, Berkshire looked like a mutual fund, primarily owning stocks. Today, the company is instead defined by its 50+ wholly owned businesses and so my immediate research focused on them. In addition to traditional archival material, I interviewed, with Buffett’s permission, many Berkshire insiders, including numerous subsidiary CEOs. I also surveyed 500 Berkshire shareholders. The result is, I hope, a comprehensive portrait of Berkshire Hathaway.

Q: Who is Tom Murphy and why did he write the foreword to your book?

LC: Tom Murphy is a legendary manager who built Capital Cities/ABC into a broadcasting powerhouse in which Berkshire invested. When I saw Warren during the weekend of Berkshire’s 2014 annual meeting, I asked him who he thought should write the foreword. He immediately named Murphy, explaining that he learned most everything he knows about management from Tom. Readers will discover that Murphy, now a Berkshire director, fostered the same culture at Capital Cities/ABC that characterizes Berkshire today. Tom writes, “From afar, it may look like Berkshire’s wide-ranging businesses are very different from one another. In fact … they span industries, they are united by certain key values, like managerial autonomy, entrepreneurship, frugality and integrity.”

(more…)

Monday, October 20th, 2014

Book Givewaway! Berkshire Beyond Buffett

This week our featured book is Berkshire Beyond Buffett: The Enduring Value of Values by Lawrence Cunningham.

In addition to featuring the book and the author on the blog, we will also be posting about the book on twitter, and facebook. You can also follow news about the book on the Columbia Business School Publishing twitter page.

We are also offering a FREE copy of Berkshire Beyond Buffett to a lucky winner. To enter the contest please e-mail pl2164@columbia.edu and include your name and address. The winner will be selected Friday, October 24 at 1:00 pm.

Berkshire Hathaway, the $300 billion conglomerate that Warren Buffett built, is among the world’s largest and most famous corporations. Yet, for all its power and celebrity, few people understand Berkshire, and many assume it cannot survive without Buffett. This book proves that assumption wrong.

In a comprehensive portrait of the distinct corporate culture that unites and sustains Berkshire’s fifty direct subsidiaries, Lawrence A. Cunningham unearths the traits that assure the conglomerate’s perpetual prosperity. Riveting stories recount each subsidiary’s origins, triumphs, and journey to Berkshire and reveal the strategies managers use to generate economic value from intangible values, such as thrift, integrity, entrepreneurship, autonomy, and a sense of permanence.

Friday, September 12th, 2014

Edward Hess: Can You Build a High-Performance Learning Organization?

Edward Hess, Learn or Die

“If we want adaptable learning organizations, we need to humanize our management models, and that requires many companies to fundamentally change attitudes and behaviors toward employees…. [W]e need to form new capital markets to support the building of endur­ing, value creating, people-centric, learning companies.”—Edward Hess

Appropriately enough, we conclude our week-long feature on Edward Hess’s Learn or Die: Using Science to Build a Leading-Edge Learning Organization with an excerpt from the books epilogue. In this passage, Hess describes the challenges of creating a High-Performance Learning Organization (HPLO):

Several people in the past year have asked me whether these research find­ings are scalable in a big company. My answer is: It depends. A private company built by an entrepreneur who aims to create an enduring business (like Gore and Bridgewater) has a good chance if the company executes its model well. Gore has scaled its model to over 10,000 employees globally, because maintaining the “Gore Way” has been a passionate pursuit of the successor leadership teams. Leadership succession coming from inside is critical. McKinsey & Company is another good example of a private busi­ness that has scaled and not lost its founder’s essence. Is it easier to do this in a private company? Yes, it is. The key is successful leadership succession from within. That is the challenge Bridgewater is tackling now.

Regarding public companies, UPS has scaled its high employee engagement and operational excellence model to over 400,000 employees, because Jim Casey’s philosophy is still alive in UPS. If successor leaders grew up in the culture and have lived the values for years, scaling is pos­sible. Other good examples of public companies that have achieved this are Costco, Corning, Inc., Sysco, and Southwest Airlines. Keeping the founder’s culture alive is the key, and that is difficult if an organization doesn’t build an internal leadership succession pipeline that keeps that culture alive. That is a challenge facing many good learning companies today, for example Starbucks, Amazon, and Google.

(more…)

Thursday, September 11th, 2014

VIDEOS: Edward Hess Presents Chapters from “Learn or Die”

We continue our video feature of Edward Hess’s discussions of chapters from his new book Learn or Die: Using Science to Build a Leading-Edge Learning Organization.

In these video, Hess presents overviews of chapters 7 to 11:

Chapter 7: Critical Thinking Tools

Chapter 8: A Conversation with Dr. Gary Klein

(more…)

Wednesday, September 10th, 2014

VIDEOS: Edward Hess Presents Chapters from “Learn or Die” (Part 1)

On Monday, as part of the giveaway for Learn or Die: Using Science to Build a Leading-Edge Learning Organization, we featured a video with Edward Hess in which he provides an overview of the book.

In conjunction with the book, Hess has provided short summaries for the other chapters in the book here are videos for chapters 2-6. (Tomorrow, we’ll post videos for chapter 7-11)

Chapter 2: Learning How Our Mind Works

(more…)

Monday, September 8th, 2014

Book Giveaway: Learn or Die by Edward D. Hess

Learn or Die: Using Science to Build a Leading-Edge Learning Organization

“This book does a beautiful job bringing together the most important ideas in organizational learning, established by academics and practitioners over the past thirty years or more, into one place.” — Amy C. Edmondson, Novartis Professor of Leadership and Management, Harvard Business School

This week our featured book is Learn or Die: Using Science to Build a Leading-Edge Learning Organization, by Edward D. Hess.

In addition to featuring the book and the author on the blog, we will also be posting about the book on twitter, and facebook.

We are also offering a FREE copy of Learn or Die: Using Science to Build a Leading-Edge Learning Organization to a lucky winner. To enter the contest please e-mail pl2164@columbia.edu and include your name and address. The winner will be selected Friday, September 12 at 1:00 pm.

In Learn or Die, Edward D. Hess combines recent advances in neuroscience, psychology, behavioral economics, and education with key research on high-performance businesses to create an actionable blueprint for becoming a leading-edge learning organization.

The following is a video based on chapter 1 of the book, which provides an overview of Learn or Die. We will share other videos for the remaining chapters during the week:

Friday, September 5th, 2014

Dean Starkman: Wrecking an Economy Means Never Having to Say You’re Sorry

Dean Starkman, The Watchdog That Didn't Bark

“We know the banks are eager to put the scandal of the financial crisis behind them. What’s disturbing is that, in the name of deference, convenience, or something darker, the Justice Department is letting them do just that.”—Dean Starkman

In his book The Watchdog That Didn’t Bark: The Financial Crisis and the Disappearance of Investigative Journalism, Dean Starkman charts the history of the financial press culminating in an analysis of the failure of mainstream journalism to cover the events and trends leading up to the 2008 financial crisis.

In a sense, he argues that the financial press abandoned its roots in investigative journalism and let mortgage lenders, banks, and Wall Street off the hook. Recently, in the New Republic, Starkman suggests that the government is doing the same after the fact. Despite some settlements paid out by the likes of J.P. Morgan and Citigroup, the Justice Department “has permitted the banks, for a price, to bury their sins.” Starkman writes:

It bears saying one more time: It’s a disgrace that the Justice Department has failed to bring a single criminal charge against any Wall Street or mortgage executive of consequence for their roles in wrecking the economy, despite having managed to make arrests in the comparatively piddling schemes of Enron and the Savings & Loan flimflam. (The latter resulted in more than 800 convictions, including those of many top executives.) These settlements are wan consolation. The sums being surrendered, for starters, are large only until compared with the $13 trillion or so the public lost in the financial crash—or, for that matter, with the banks’ own coffers. (Citi’s pure profit in the two years before the wipeout was more than triple its penalty.) Not to mention that the money won’t be paid by any parties actually responsible, but by the banks’ current shareholders, who pretty much had nothing to do with the misdeeds in question. And the bulk of the settlements will be tax deductible. For destroying trillions in wealth and thousands of jobs, banks will get a write-off.

(more…)

Thursday, July 3rd, 2014

The Value of Moats

The Nature of Value

“The investor’s job is to make a judgment about intrinsic value based on faith in the underlying capabilities to maintain the moat relative to the cluster and economy on a go-forward basis.” — Nick Gogerty

This week our featured book is The Nature of Value: How to Invest in the Adaptive Economy, by Nick Gogerty. In today’s excerpt from The Nature of Value, Gogerty explains the concept of “moats,” and argues that identifying a moat is an extremely lucrative pursuit for any business.

Don’t forget to enter our book giveaway for The Nature of Value by 1 PM Monday, July 7th!

Wednesday, July 2nd, 2014

The Nature of Value, as Illustrated Through Pins

The Nature of Value

This week our featured book is The Nature of Value: How to Invest in the Adaptive Economy, by Nick Gogerty.

Last month, we pinned many of the most profound illustrations from the book on CUP’s Pinterest profile.
As one can see below, Gogerty takes a completely original approach to explaining the relationship between intrinsic value and price. As the intrinsic value of a golden-egg-laying goose may not be obvious at a quick glance, neither is the value of a firm’s unique capabilities. View the full The Nature of Value board here.









Throughout the week, we will be featuring content about the book and its author on our blog as well as on our CBSP Twitter feed.
Don’t forget to enter our book giveaway for The Nature of Value by 1 PM Monday, July 7th!
Additionally, you can read an excerpt from the first chapter here.

Tuesday, July 1st, 2014

A Glimpse into The Nature of Value, by Nick Gogerty

The Nature of Value

This week our featured book is The Nature of Value: How to Invest in the Adaptive Economy, by Nick Gogerty. Today, we are happy to present an excerpt from the first chapter of The Nature of Value, “The Problem with Price? It’s Not Value,” in which Gogerty illustrates the concept of intrinsic value as a golden-egg-laying goose. After seeing these original graphics, you won’t be able to confuse “price” for “value” again!

Throughout the week, we will be featuring content about the book and its author on our blog as well as on our CBSP Twitter feed.
Don’t forget to enter our book giveaway for The Nature of Value by 1 PM Monday, July 7th!

Monday, June 30th, 2014

Book Giveaway! The Nature of Value, by Nick Gogerty

The Nature of Value

This week our featured book is The Nature of Value: How to Invest in the Adaptive Economy, by Nick Gogerty. Throughout the week, we will be featuring content about the book and its author on our blog as well as on our CBSP Twitter feed.

The Nature of Value explores the function of economic value in the context of evolution’s processes to explain how investors can improve their allocation decisions. View the book trailer here:

We are also offering a FREE copy of The Nature of Value. To enter our book giveaway, simply fill out the form below with your name and preferred mailing address. We will randomly select our winners on Monday, July 7th at 1:00 pm. Good luck, and spread the word!

Wednesday, June 18th, 2014

A Conversation With Leslie Pratch, Author of LOOKS GOOD ON PAPER?

Leslie Pratch

“Effective leaders are likely to act with consistently high integrity and to demonstrate sound, timely judgement when they occupy positions of power…. But every executive is unique … the most striking differences … are in their underlying motivations and their coping tendencies.”–Leslie Pratch

The following is an interview with Leslie Pratch, author of Looks Good on Paper: Using In-Depth Personality Assessment to Predict Leadership Performance

Q: How did you first become involved in the role you play for companies now—evaluating candidates for leadership positions?

A: I have been evaluating candidates for leadership positions for more than 15 years. But I didn’t get to this spot by accident; creating the tools and building the capability to do this was something I pursued for many years across multiple universities and graduate degrees.

First, I was a graduate student in psychology. As a graduate student, I had the chance to help set up a talent program for high potential professionals at Arthur Andersen. For my Ph.D. dissertation, I researched if it were possible to predict the emergence of leaders in a high performing group, using a psychological approach I was developing. It turned out that it was possible. After graduate school, I worked with State Farm on the development of a competency framework for their whole organization. That led me to the development of my own competency framework, which I use in my work today with my clients. I also got an MBA, after I had begun evaluating executives, to give me better tools to understand the issues my clients and their candidates face.

Q: How does holding an MBA help you in your work?

A: Having a strong understanding of business allows me to understand at a sophisticated level what my clients are trying to do with their companies and investments. I can understand and think critically about the investment thesis, understand the strategy of the firm, and see the implications of all of that for the job that will be ahead for the candidates I’m evaluating. Having a strong understanding of business lets me be a business discussion partner as well as a skilled psychologist.

Q: Why do you continue to track candidates for months and years after they have secured the position they were being considered for?

A: These are long-term jobs. The usual investment horizon for my clients is three-to-five years, and most public company boards give top managers some time before deciding whether a new CEO is a success (with rare, glaring exceptions when someone is clearly failing). Since I am not predicting how a candidate will perform on a specific task, but rather how the candidate will handle the complex job of leading an organization over time, we have to let time pass to see what happens. (more…)

Friday, June 6th, 2014

Will New York City Remain the Capital of Capital?

Capital of Capital

“Ultimately, the question asked today is the same one raised in the 1790s, the 1830s, the 1890s, the 1910s, and the 1930s: how can the city and the nation balance their own needs with those of a banking system that they cannot afford to be without?”—from Capital of Capital

As noted in Capital of Capital: Money, Banking, and Power in New York City, 1784-2012, according to the Z/Yen Group’s Global Financial Centres Index, New York City has slipped from its top position as the leading financial center, replaced by London. Here are the top 10 cities:

1. London
2. New York City
3. Hong Kong
4. Singapore
5. Tokyo
6. Zurich
7. Chicago
8. Shanghai
9. Seoul
10. Toronto

Will New York City reclaim its top position or slip further down as emerging economies become even bigger players in the global economy? In the conclusion to Capital of Capital, authors Lautin and Jaffe explore the challenges faced by New York City as the Capital of Capital as well as the city’s resiliency as a leading financial center:

If, despite traumas and changes, New York City endured as the nation’s financial headquarters, its identity as the world’s banking hub, a role it had played for decades, faced serious challenges in the new century. In the early 2000s, even before the meltdown, the city seemed to be losing out to global financial centers like Hong Kong, Singapore, and London. Press stories pointed to startling statistics: in 2007, less than 15 percent of the world’s new initial public offerings of stock shares were brought to market on one of the New York exchanges. As recently as the 1990s, that figure had topped 74 percent. And even though today most of the world’s biggest banks are located in Europe (the largest American bank, JPMorgan Chase, was number nine on that list in 2012), by 2050 the emerging economies of the developing world are expected to overtake the industrialized nations.

(more…)

Thursday, June 5th, 2014

Images from Capital of Capital: Money, Banking, and Power in New York City

Capital of Capital

The following are some examples of the extraordinary images and historical documents from Capital of Capital: Money, Banking, and Power in New York City, 1784-2012, by Steven H. Jaffe and Jessica Lautin:

New York One-Cent Note
New Yorkers were familiar with paper money before the founding of the Bank of New-York in 1784. In the early republic, the issuing of paper money would become the province of private, state-chartered banks such as the Bank of New-York. City governments and even private businesses also issued notes in payment to employees or vendors.

Greenback
Recognizing that the Northern economy needed a more ample and liquid money supply in order to win the war, Secretary of Treasury Samuel Chase resorted to a radical new plan in 1862 and 1863. The secretary now pressed Congress to authorize the Treasury to issue a new paper currency “bearing a common impression.” These greenbacks as they became known , would enter the economy as the government paid soldiers, sailors, and war contractors with them; as banks made loans and cashed checks for customers; and as citizens exchanged notes from state banks for the federal money.

Women's Banking
The divided spaces of Beaux-Arts banks reflected the diversified operations and activities of Gilded Age banking. Clerks, tellers, and cashiers were separated from the public by elaborate brass grillwork, and female customers were segregated. Responding to the fast-growing population of women depositors while adhering to Victorian gender norms, banks provided women with their own teller windows and maid service.

Depression
Albert Potter evoked the despair of the depression years in New York with the figure of a beggar; Death hovers above.

(more…)

Wednesday, June 4th, 2014

New York City as the Capital of Capital — Steven Jaffe and Jessica Lautin on The Brian Lehrer Show

Today, we offer another interview with the authors of Capital of Capital: Money, Banking, and Power in New York City, 1784-2012.

Steven H. Jaffe and Jessica Lautin recently appeared on The Brian Lehrer Show to discuss the book and the frequently contentious history of banks in New York City. Among other issues, Jaffe and Lautin discussed why New York City became the “capital of capital,” surpassing Philadelphia and other cities; how New York City became not only the center of banking but also the center of protests against capitalism from the union movement to Occupy Wall Street; how immigration gave rise to savings banks; and whether or not New York City will remain the “capital of capital”

Tuesday, June 3rd, 2014

Interview with Jessica Lautin, Co-Author of Capital of Capital

Capital of Capital “Banks are not a monolith; and their functions have been extraordinarily diverse—worthy of both ire and praise.”—Jessica Lautin

The following is an interview with Jessica Lautin, co-author of Capital of Capital: Money, Banking, and Power in New York City, 1784-2012

Question: What is Capital of Capital about?

Jessica Lautin: Capital of Capital examines how New York’s banks became central first to the city’s, then the nation’s, and ultimately the world’s economy. And it’s about the symbiotic relationship between the development of New York’s banks and the city itself.

Q: Why is it important?

JL: You can’t understand the growth of New York City without understanding the growth of its banks. There are excellent books and articles out there on specific periods in this great narrative—on Alexander Hamilton, the Gilded Age, the Depression, the fiscal crisis, and of course the Great Recession. But this book is the first to cover the full sweep. By looking at this long history you can see certain themes, trends and topics emerge: the cycles of booms and busts; the denial of and access to credit; the relationship between New York’s banks and government; the creation by New York’s banks of new financial instruments and strategies; and banks’ investment in the infrastructure of the city.

Q: The exhibition that preceded the book was on view at the Museum of the City of New York in 2012. Why did the City Museum decide to cover this topic at this time?

JL: Citigroup was interested in sponsoring an exhibition about the history of banking in Gotham to honor the 200th anniversary of the founding of the City Bank of New York in 1812. This idea dovetailed perfectly with the Museum’s mission to connect New York City’s past, present, and future. We began planning this exhibition when the city and nation were still reeling from the financial crisis and the Occupy Wall Street movement had just made the news. Everything was still so fresh that we wondered if the opening of the exhibition might even draw protestors. (It didn’t). All of the headlines echoed those that appeared in the 18th, 19th and 20th centuries: outrage at the city’s banks and attacks on its wealthiest citizens; calls for tighter regulation; announcements of new forms of currency; concerns about banks leaving town. We covered this history in the exhibition while also leaving visitors with a question about the future: Would New York City continue to be the capital of global finance? Newly generated and designed infographics in the last section (that also appear in the book) helped visitors to come up with an answer—graphics on such topics as: banks and the labor force; assets of commercial banks; and loans by foreign bank branches. Then there was an opportunity to register an answer in a survey programmed on old ATMs.

Q: Banks today and throughout NYC’s history have been the frequent targets of criticism. How fair is this?

JL: It’s true that banks have been the target of vitriol since their founding. Like the Occupy Wall Street protestors, John Adams attacked them as corrupt and elitist, calling bankers “swindlers and thieves.” It makes sense, and yes, it’s fair, that Americans have always been suspicious of the institutions that pool, grow and distribute money and credit. There are many instances throughout the nearly 230 years when banks have willfully ignored excessive risk to themselves and their customers in the interest of profit. If in 2008 it was the packaging and selling of subprime mortgages, in 1857 it was speculation in railroad securities. Also, before legislation forced banks to change their lending and hiring policies in the 1960s, ‘70s and ‘80s, many banks systematically denied employment and credit to African Americans, women, gays and lesbians. And this denial of credit had profound and lasting effects, for example, on the segregation of neighborhoods. By subsidizing the building of single-family homes for whites in the suburbs while refusing home loans to blacks and Hispanics in poorer neighborhoods, banks perpetuated poverty and racism.

(more…)