Last week, I was re-reading Gayer, Rostow and Schwartz's The Growth and Fluctuation of the British Economy 1790-1850. Just after I had finished, I heard the sad news that Anna Jacobson Schwartz had passed away aged 96. Schwartz worked daily in her NBER office up until very recently and was highly critical of the the Fed's actions and expansion during the financial crisis. I had the privilege of meeting Anna Schwartz in the mid-1990s - she was a gracious scholar who was very keen to talk to a young PhD student from Queen's University. I was amazed by her intellectual sharpness and her humility - the two things all great scholars should possess. You can read obits here and here.
Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...