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THE TUFTS DAILY
TUFTSDAILY.COM
FRIDAY, MARCH 5, 2010
VOLUME LIX, NUMBER 25
Where You Read It First Est. 1980
Norman critiques financial industry BY
HARRISON JACOBS
Daily Editorial Board
Professor of Economics George Norman last evening warned that the recent bank collapses could occur again due to persisting structural problems in the financial industry. Norman in his lecture cautioned against thinking that the crisis would not repeat itself. “You have a simple model that tells you how things should be,” he said. “Yet we have a situation where the world repeats itself. It’s going to happen again. We see some elements of that already.” Norman spoke in Brown and Brew at the Tufts Community Union (TCU) Senate-sponsored After Hours, an informal conversation series featuring lectures and question-and-answer sessions aimed at promoting intellectual life on campus. Last evening’s event was titled “Are Corporate Scandals Inevitable,” and Norman spent the lecture portion of the event explaining the problems within the financial industry. He covered topics ranging from the massive trading losses at Barings Bank and the Bernard Madoff scandal to the more macro issue of the contradictory structure of corporate banks and the U.S. Securities and Exchange Commission (SEC). Norman explained that there is a huge conflict of interest that exists between those analyzing financial markets and the banks doing the trading.
The problem, Norman said, is that financial analysts are paid on an incentive-based structure and beyond that are paid bonuses based on the amount of business they attract for a particular bank. This means that if they do not project high business levels for a particular bank, they will not receive large bonuses. “The outward analyses say ‘buy, buy, buy,’ but the internal e-mails say that they’re wrong,” Norman said. “That’s like me being paid for the grades that I give you. If that was the case, I’d give all of you A-pluses. That’s the conflict of interest.” The second half of the event was a question-and-answer session, which elicited many questions from audience members. Among the questions asked was why Madoff was able to get away with his illegal financial dealings for so long. Responding to the question, Norman said that the Madoff scandal was illustrative of the larger problem that still exists in the financial industry. “The problem was that, aside from the fact that the SEC investigators were most certainly incompetent, most guys that start working at the SEC go from being gatekeepers to being poachers,” he said. “You don’t want to push too hard, because you might want a job with Madoff some day.” Junior Liam Clegg felt the conversation was extremely helpful see FINANCE, page 3
JENNA LIANG/TUFTS DAILY
The Fletcher School is hosting an exhibition aimed at promoting a culture of peace.
Fletcher School event promotes culture of peace BY
facilitate conversation on how to promote a culture of peace. The event, running from March 5 to 11, is titled “From a Culture of Violence to a Culture of Peace? A Week of Reflection” and is centered on a major photographic exhibi-
ALISA KHARAKOZOVA Contributing Writer
The International Law Society (ILS) at The Fletcher School of Law and Diplomacy today kicks off a week-long capstone event intended to
Musician demonstrates Latin American music
BY
SCOTT TINGLEY/TUFTS DAILY
Inside this issue
see EXHIIBIT, page 3
Program helps international graduate students adapt to American life EMILIA LUNA
Daily Editorial Board
Héctor Martínez Morales yesterday gave a presentation on traditional Latin American music. He sang and also played and explained a number of different instruments. The event, “La música del folklore latinoamericano,” was sponsored by the Department of Romance Languages, Toupin-Bolwell Fund, the Department of Music, the Latin American Studies Program, the Latino Studies Program and the Latino Center.
tion brought to Massachusetts for the first time. The programming climaxes on Wednesday with a roundtable discussion bringing together experts from different fields.
Adjusting to the American collegiate lifestyle is difficult for any arriving student, but for some international graduate students, the adjustment can be quite a challenge. To help out these students, every year the International Center directs the Intercultural Conversation Program, through which incoming international graduate students are paired up with English-speaking faculty, staff and students to help them practice English and adjust to life in the United States. For most of these students, it is their first time coming to the United States and entering an American university setting. The program started in 1996 as a response to the needs of international graduate students. “The program is for students to get acculturated, to have an English speaker help them with adjusting and asking day-to-day questions,” Jane Etish-Andrews, director of the International Center, said. In order to participate, international graduate students and the undergraduate English-speaking students fill out a survey at the beginning of the year. “We try to pair them with someone that has
similar interests, and we have had very good pairs that have become very good friends,” Fletcher student Barbara Bravo Flores, the program coordinator of the Intercultural Conversation Program, said. The English-speaking students participate in the program because of different motivations. The program is a requirement for the residents of the International House (I-House). “It is their community service contribution,” EtishAndrews said. The International Center also recruits returning study abroad students for the program. Sophomore and I-House resident Kia Widlo said that participating in this program was a rewarding experience. “It is a program where I can meet someone that I probably wouldn’t meet otherwise, and it is an exchange of culture, understanding and views,” she said. “It is a way to gain a friend and build a relationship that you otherwise might not be able to.” For sophomore Christina Aguirre, the program has gone beyond the weekly one-hour meetings. “[My partner] has become an older sister to me,” Aguirre said. “She is always there, and we have a true friendship. We see INTERNATIONAL, page 3
Today’s Sections
Saya Woolfalk transforms Tufts Art Gallery into a fictional utopia.
The ice hockey team ends the season with its best record since joining the NESCAC.
see ARTS, page 5
see SPORTS, back
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