LESSON 1
Financial Institutions and Money: An Introduction

1.  An Introduction to Financial Institutions
2. An Introduction to Money
3. An Introduction to Central Banks
4. An Introduction to Financial Intermediation
5.  Financial Sector Growth and Real-Sector Productivity
6.  Financialization

Readings and Other Resources: Coursepack: Chapter 1; Video: Cryptocurrency, Distributed Ledgers and Blockchains: https://vimeo.com/351197360/789a2fab92

 
LESSON 1
A Brief History of Pre-20th Century Banking

1.       Early History of Money
2.       A History of Merchant Banking through the Reformation
3.       The Expansion and Modernization of European Banking

4.       Origins of Central Banking

5.       A History of Investment Banking

 

Readings and Other Resources: Coursepack: Chapter 2; Video: The Medieval Bank, the Medici and the Church! Economics!: https://www.youtube.com/watch?v=DVmNa52Qpwc

 
LESSON 2
Essential Microeconomic and Financial Theory for Banking

1. The Principal-Agent Problem
2. Moral Hazard
3. Limited Shareholder Liability and Moral Hazard
4. Black-Scholes Valuation of Corporate Securities
5. Contracting
6. Adverse Selection and Lemons Markets
7. Mitigating Information Problems

Readings and Other Resources: Coursepack: Chapter 3; Video: The Black-Scholes Options Pricing Model: https://vimeo.com/351000132/6a9d6fa53a; Video: Corporate Securities as Options: https://vimeo.com/346202567/6c1543a740; Video: Implied Volatility: https://vimeo.com/351001396/65adcc8764 

LESSON 2
Depository Institutions and and Corporate Banking

1. Commercial Banks
2. Variations of Depository Institutions and Banks
3. What Makes Banks Special?
4. Corporate Bank Lending Activities
5. Other Corporate Banking Activities

Readings and Other Resources: Coursepack: Chapter 4

 LESSON 3
Bank Risk     Part II: Corporate Banks and Securities Markets

1.   Sources of Bank Risk

2.   Credit Risk

3.   Interest Rate Risk

4.   Asset-Liability Management

5.   Bank Investment in Government Securities Markets

6.   Bank Issues and Sales of Securities

7.   Structured Finance and Derivative Instruments

8.   Eurocurrency Issues

Readings and Other Resources: Coursepack: Chapter 5; Coursepack: Chapter 6

 
LESSON 3
Bank Stress, Failure and Crises      Part II: Bank Regulation and Regulators

1. Bank Stress and its Measurement
2. Bank Failure
3. Resolving Bank Failures
4. Interconnectedness and Systemically Important Financial Institutions
5. Bank Crises
6. Introduction to Bank Regulation
7. U.S. Banking Regulation
8. Bank Regulators
9. Managing the Moral Hazard Problem

Readings and Other Resources: Coursepack: Chapter 8; Coursepack: Chapter 9; Note that Chapter 7 has been skipped

 

LESSON 4
Introduction to Investment Banking

1. Investment Banks and their Roles
2. Investment Banking Since the Great Depression
3. Introduction to IPOs: Going Public
4. Benefits and Costs of Going Public
5. Investment Banking and the Underwriting Process
6. Alternatives to Traditional Underwriting
7. Regulation of IPOs and Securities Issuance

Readings and Other Resources: Coursepack: Chapter 10; Video: Goldman Sachs at 150 (2019): https://www.goldmansachs.com/our-firm/history/goldman-sachs-at-150/ or  https://www.youtube.com/watch?v=wonEywOwpEo and at 9 other Youtube sites or at Amazon Prime: https://www.amazon.com/Goldman-Sachs-at-150/dp/B07R7XHDRF.

LESSON 5
Anomalies, Seasoned Offerings and Debt Underwriting

1. The IPO Underpricing Anomaly
2. Explaining the Short-run IPO Anomalies
3. Long-Run IPO Performance
4. Seasoned Equity Offerings
5. Investment Banks and Trading
6. Topics in Trading: As time permits

Readings and Other Resources: Coursepack: Chapter 11

LESSON 5 (Subject to Change)

1. Review and Q&A, As motivated by students
2. Any catch-up or additional items
3. Case Studies