Corporate and Investment
Banking Videos
There are a number of videos and films that might be helpful to
you in this course, some made by professionals, some by amateurs and
even a few starring myself. But, sadly, high-end popular educational
films in finance that gets film buffs all abuzz really aren't
particularly common.
Introductory Video to View Prior to the Course Start
This video will
introduce the course, CIB, with a focus on its syllabus: cibIntro.mp4.
Remedial Videos for the First
and Second Sessions
In previous offerings of this course, some students have struggled
with certain topics, particularly those related to cryptocurrency and to
the Black-Scholes options pricing model. Some students have not seen the
Black-Scholes model in prior classes. Here are four videos that I made
with Gianpiero Alicchio and Allegra Sappio of LUISS that introduce just
the basics of these topics. So, if you read about these topics in the
Coursepack and are having problems, have a look at the videos. Bear in
mind that I am based in New York, while Gianpiero and Allegra are in
Rome, so there are still a few minor glitches in the videos. Partly
because of these glitches, I recommend that you see the notes below
before or while you view the videos.
Session 1:
John Teall - MBA - 4 - Cryptocurrency,
Distributed Ledgers and Blockchains
https://vimeo.com/351197360/789a2fab92
This
video
discusses blockchains, distributed ledgers and cryptocurrency.
Before viewing this video, read pp.7-10, which are part of Section B
in Chapter 1 of the Coursepack, available at http://www.jteall.com/cib01.pdf.
Session 2:
John Teall - MBA - 1 - The
Black-Scholes Options Pricing Model
https://vimeo.com/351000132/6a9d6fa53a
|
This
video
introduces the important Black-Scholes Options Pricing Model to
the valuation of simple "plain vanilla" stock options, calls and
puts.
|
|
Before
viewing
this video, read pp. 26-29 of the Appendix to Chapter 3 of the
Coursepack, available at http://www.jteall.com/cib03.pdf.
The following are notes that might be helpful to you when
viewing the video. I recommend pausing the video during the
times listed in the far left to pay attention to the notes
towards the center and right:
|
|
Time
|
S0
= 75
|
X
= 80
|
T
= .5
|
s2
= .16
|
rf
= .10
|
s
= .4
|
c0
= ?
|
|
|
Underlying
|
Exercise
|
Expiration
|
Underlying
|
Riskless
|
Underlying
|
Call
|
|
1:24-1:27
|
Price
|
Price
|
Date
|
Return
|
Return
|
Standard
|
Price
|
|
|
|
|
|
Variance
|
Rate
|
Deviation
|
|
|
2:16-22
|
The
Black-Scholes
Model is in the box on the right. We will fill in the values
from the left of the video into the box.
|
|
2:22-33
|
Starting
with
the equation for d1, we fill in values, finding that
d1 = 0.09. Then, we fill in values for d2,
finding that d2 = -0.1928 (the equals sign before it
is missing).
|
|
2:43-2:53
|
Next,
we
get the N(d1) and N(d2) values from a z-table. Since
different z-tables handle areas to the left of the mean
differently, under the normal curve the value .5 might or might
not be added or subtracted from the value at the appropriate
intersection of row and column. But, each table will be
consistent from example to example.
|
|
2:58-3:06
|
Now,
insert
the N(d1) and N(d2) into the c0 equation
to complete the calculation.
|
|
3:19-3:47
|
Don't
stop
the video. Instead, look at the following equation:
Also,
I
made
a mistake at time = 3:26, saying "minus" when I should have said
"plus."
|
John Teall - MBA - 2 - Corporate
Securities as Options
https://vimeo.com/346202567/6c1543a740
This
video
applies the Black-Scholes Option Pricing Model to the valuation of
corporate stock and bond securities.
Before
viewing
this video, read pp.3-10, Sections D and E in Chapter 3 of the
Coursepack, available at http://www.jteall.com/cib03.pdf.
If you haven't done so already, you might also wish to read pp. 26-29 of
the Appendix to Chapter 3 of the Coursepack, available at http://www.jteall.com/cib03.pdf.
The video introducing the Black-Scholes Option Pricing Model at https://vimeo.com/351000132/6a9d6fa53a
might also be helpful.
The
following
are notes that might be helpful to you when viewing the video. I
recommend pausing the video during the times listed in the left to pay
attention to the notes towards the center and right:
John Teall - MBA - 3 - Implied
Volatility
https://vimeo.com/351001396/65adcc8764
This
video
applies the Black-Scholes Option Pricing Model to the calculation of
underlying stock (or asset) variances based on option (or equity) market
prices.
Before
viewing
this video, read pp. 26-29 and p. 32 of the Appendix to Chapter 3 of the
Coursepack, available at http://www.jteall.com/cib03.pdf.
The video introducing the Black-Scholes Option Pricing Model at https://vimeo.com/351000132/6a9d6fa53a
might also be helpful.
The
following
are notes that might be helpful to you when viewing the video. I
recommend pausing the video during the times listed in the left to pay
attention to the notes towards the center and right:
|
2:49-3:17
|
|
T
= .5
|
r
= .10
|
c0
= 7.00
|
X
= 80
|
S0
= 75
|
|
|
If
investors
use the Black-Scholes Options Pricing Model to value
calls, the following should be expected:
|
|
|
3:21-3:32
|
Just
compare
what is written above to what is on the screen. Notice that the
calculated call price c0 =
7.958 > 7.00 is too high. We will need to try again with a
lower standard deviation
estimate.
|
Instructional Videos that
Correspond to CIB Sessions
Running a course online through Webex can be dreadful for a number of
reasons. Students often find reading long dense pdf files about banking to
be even more dreadful. In an effort to make some part of this material more
palatable to students, I propose that you consider watching a few fairly
well-made films for some comic relief. It is not essential that students
view any of the following videos if they are able to read and fully
comprehend the Coursepack. The videos just might be more enjoyable for some
students and may make it easier to fully understand the material in the
Coursepack for some. Unfortunately, the videos will certainly not cover all
of the material required for exam purposes. Some of the videos below are
well-made and entertaining, which might help students stick with their
efforts a little longer. In case problems arise due to your url, firewalls
and the like, multiple links are provided for most videos.
Session 1: How
The Federal Reserve Works (And Who Really Owns It): A 9-minute
instructional video discussing the background and structure of the U.S.
Federal Reserve System. Available at https://www.youtube.com/watch?v=-Y0I-vVLBVQ
and https://medium.com/bc-digest/the-federal-reserve-14e077bc94c0.
The first minute and the last minute of the video aren't useful.
Session 1: The
Medieval Bank, the Medici and the Church! Economics!: This video by
Nick Barksdale is more focused than the Coursepack on medieval banking
operations of paramilitary orders such as the Knights of Templar, and does
not discuss matters such as usury, early pawn brokers, etc. in much detail.
Nevertheless, it is a decent introduction to medieval banking on the Italian
peninsula. Link to it at https://www.youtube.com/watch?v=DVmNa52Qpwc.
Session 1: The
Ascent of Money (2008) In this 6-part, 4-hour documentary, based on
a book with the same title, Niall Ferguson, author and academic, traces the
evolution of money, bond markets, insurance, bubbles, the subprime mortgage
debacle, etc. A key lesson from this video is the same as what historians
regularly remind us: This time is not so different; it has happened before
and more than once. The film has applications to Sessions 2 and 7. At least
three of the 6 parts are available through PBS online at https://www.pbs.org/video/the-ascent-of-money-part-1-from-bullion-to-bubbles/,
https://www.pbs.org/video/the-ascent-of-money-part-2-bonds-of-war/,
and https://www.pbs.org/video/the-ascent-of-money-part-3-risky-business/,
and on New York's PBS affiliate, Channel 13, for example, https://www.thirteen.org/programs/the-ascent-of-money/the-ascent-of-money-the-ascent-of-money-episode-2-bonds-of-war/.
It appears that all 6 segments are available at https://www.youtube.com/watch?v=fsrtB5lp60s
and probably elsewhere. This 4-hour film overlaps much of the content of
Session 2, covers a lot interesting information not in Chapter 2 (e.g., John
Law, stock market bubbles, the birth of the Amsterdam Stock Exchange) and
omits some important material in the Coursepack (e.g., details on usury).
Another nicely made video, a more general discussion of money, its functions
andi ts history is available at https://www.pbs.org/video/in-money-we-trust-ox6o7a/.
This lat video highlights the opinions of a number of "gold bugs."
Session 2: Trillion
Dollar Bet (2000): This documentary tells a story of the
Black-Scholes-Merton options pricing formula and the collapse of hedge fund
Long-Term Capital Management (LTCM). It includes interviews with Robert
Merton and Myron Scholes, who won the Nobel Prize in Economics in 1997. Some
of the stories involving academics are true, some are a little misleading.
Some are dead-on right, such as the story told by Paul Samuelson concerning
Louis Bachelier and the discussion of Itτ
Calculus. The "dark side" stories of the narrator seem to reflect a lack of
knowledge trading and financial modeling, but no real harm done, but
many of the descriptions of basic options are pretty good. The video omits
discussion well-known and visually similar formulas that existed at the time
developed by Sprenkle and Samuelson. The key insight of the
Black-Scholes-Merton formulations is the dynamic hedge ratio, as discussed
in the film. There are striking similarities between the failure of
resolution of LTCM and the Financial Crisis of 2008. One insightful quote at
the end, by Paul Samuelson, citing Albert Einstein: "Elegance is for
tailors." This would be a wonderful film for the right finance course.
Available for free, as of April 2020 at https://watchdocumentaries.com/trillion-dollar-bet/, https://docur.co/documentary/trillion-dollar-bet, https://archive.org/details/TrillionDollarBet
and https://vimeo.com/244903345.
Session 3: Panic:
The Untold Story of the 2008 Financial Crisis: Full VICE Special
Report: Excellent HBO documentary detailing the events leading up
to the failure of Lehman Brothers. Available on HBO-Go and, as of April
2020, available on Youtube at https://www.youtube.com/watch?v=QozGSS7QY_U,
https://topdocumentaryfilms.com/panic-untold-story-2008-financial-crisis/,
https://www.youtube.com/watch?v=wyz79sd_SDA,
and https://www.forbes.com/sites/rogervaldez/2019/05/26/must-watch-the-untold-story-of-the-2008-financial-crisis/#6db2da982352.
Most of these web pages have a connection to Youtube.
Session 4: (Also Session
2): Goldman Sachs at 150
(2019): This 150 minute documentary by Ric Burns and paid for by Goldman
Sachs as a sort of 150th birthday present for itself, chronicles the history
of Goldman since 1869. The documentary is split up into 10 segments
averaging 15 minutes each. By paying close attention to detail, someone who
knows nothing about investment banking can learn quite a lot from this
video. Be aware that the film does omit from its history accountings of a
variety of ethics violations and allegations, charges and convictions of
crimes directed at the firm and employees, including fraud, insider trading,
price manipulation, etc. The series of videos does become a bit more
propaganda-oriented in later segments.The video is available on Amazon (free
for Amazon Prime members or about USD 6 for all 10 episodes at https://www.amazon.com/Goldman-Sachs-at-150/dp/B07R7XHDRF.
Better yet, the film is free for everyone with each of the 10 separate
segments available on Youtube (e.g., https://www.youtube.com/watch?v=wonEywOwpEo
and https://www.youtube.com/watch?v=qoCT-h18-ls).
The
video is also available for free in each of its 10 segments from Goldman
Sachs itself at https://www.goldmansachs.com/our-firm/history/goldman-sachs-at-150/.
For a somewhat more negative and very biased historical view of the firm,
have a look at Goldman Sachs CNBC
Documentary: Trading Techniques of an Investment Bank, available at
https://www.youtube.com/watch?v=59ZjK5xPdy8.
Session 4: Initial
Public Offering (IPO) Explained: This just-under 5-minute
video prepared by Citadel Securities and maintained on the Investopedia
website does a nice job providing a short explanation explaining the process
of bringing an IPO to the market. Link to it at https://www.investopedia.com/terms/i/ipo.asp.
A second video, called How do IPOs Work,
even shorter at less than 3 minutes, also brought to you by Citadel
Securities and Investopedia, focuses on the IPO price-setting process on the
NYSE is available at: https://www.investopedia.com/articles/investing/080613/road-creating-ipo.asp.
The page on which the video provides a clear and very simple introduction to
IPOs. A third and even shorter video, also provided by Investopedia, The
Pros And Cons Of A Company Going Public, is available at https://www.investopedia.com/ask/answers/what-does-going-public-mean/.
Films and Videos that Might be a
Little Bit Instructional, but Likely to be More Entertaining
While many of the
films on this list were popular, their educational value might
questionable, or at least aren't quite relevant to our course.
Nevertheless, they might be more entertaining than the
Coursepack. I have not looked at films closer to the bottom of
the list. All of these films are available online somewhere, but
many will probably require some sort of subscription to view.
Links to free sites are provided where available.
Trading
Places (1983): A rather silly comedy starring Eddie Murphy that
actually stands out among popular films concerning finance and financial
trading. While, for the most part, the film is downright silly, it does
include some dramatic and even somewhat realistic depictions of a number of
important concepts crucial to traders. There were real parallels between
actual trading and the trading action in the film. It might be worth looking
online to list how others have listed some of the parallels between the film
and actual trading floors. Some observers have suggested that the film was
inspired by a real-life social experiment of trading partners William
Eckhardt and Richard Dennis, who sought to learn whether successful trading
could be taught.
The Ascent of Money (2008) In this
6-part documentary, based on a book with the same title, Niall Ferguson,
author and academic, traces the evolution of money, bond markets, insurance,
bubbles, the subprime mortgage debacle, etc. A key lesson from this video is
the same as what historians regularly remind us: This time is not so
different; it has happened before and more than once. Has applications to
Sessions 2 and 7. At least three of the 6 parts are available through PBS
online at https://www.pbs.org/video/the-ascent-of-money-part-1-from-bullion-to-bubbles/,
https://www.pbs.org/video/the-ascent-of-money-part-2-bonds-of-war/,
and https://www.pbs.org/video/the-ascent-of-money-part-3-risky-business/.
It appears that all 6 segments are available at https://www.youtube.com/watch?v=fsrtB5lp60s.
Floored (2009): A documentary by
the trader James Allen Smith is instructional and might be of interest to
students, but doesn't really intersect with material covered in our
particular course. This documentary concerns the decline of the Chicago
Trading Pits and traders' responses and efforts to adapt to electronic
trading.
Growth of the Finance Industry
(2019): Narrated by Philip Short, this 8-part series of 12-minute segments
chronicles the past 100 years of the development of Shanghai's banking and
financial industries. Free with Amazon Prime, and approximately $6 for all 8
parts through Amazon (paid; free with Amazon Prime) at https://www.amazon.com/Growth-Finance-Industry/dp/B07HFJHS6Z.
Inside Job (2010): Documentary
concerning the Financial Crisis of 2008.
Rogue Trader (1999): Acted film
based on Nick Leeson and Barings Bank.
Wall Street (1987): Acted film
starring Michael Douglas and Charlie Sheen loosely inspired by Ivan Boesky
and his insider trading activities.
Too Big to Fail (2011): Acted film
based on the book by Andrew Ross Sorkin starring William Hurt, Edward Asner
and Paul Giamatti chronicling the events surrounding the 2008 failure of
Lehman Brothers, somewhat focused on Paulson. Available through HBO-GO and
Amazon.
Goldman Sachs CNBC Documentary: Trading
Techniques of an Investment Bank (2014): For a somewhat negative
and biased historical view of Goldman Sachs, have a look at this
documentary, available at https://www.youtube.com/watch?v=59ZjK5xPdy8.
Wizard of Lies (2017): Acted film
chronicling the Bernie Madoff scam and its aftermath.
Margin Call (2011): Fictional
thriller that follows the key people at an investment bank over a 24-hour
period during the early stages of the 2008 financial crisis.
The Wolf of Wall Street (2013):
Drama based on the life of Jordan Belfort, from his rise to a wealthy
stock-broker living the "fast lane" to his downfall.
Introduction to Banking (2016):
Cartoon made by Bank Audi. A 4-minute introduction to banking for the
utterly clueless. Available at https://vimeo.com/143839648
Boiler Room (2000) A college
dropout, attempting to live up to his father's high standards, gets a job
as a broker for a suburban investment firm which puts him on the fast
track to success. But the job might not be as legitimate as it first
appeared to be.
The Big Short (2015) In
2006-2007 a group of investors bet against the US mortgage market. In
their research they discover how flawed and corrupt the market is.
Wall Street: Money Never Sleeps
(2010) Now out of prison but still disgraced by his peers, Gordon Gekko
works his future son-in-law, an idealistic stock broker, when he sees an
opportunity to take down a Wall Street enemy and rebuild his empire.
Capitalism: A Love Story (2009):
A Michael Moore examination of the social costs of corporate interests
pursuing profits at the expense of the public good.
Other People's Money (1991) :
Comedy
American Psycho (2000): A
wealthy New York City investment banking executive, Patrick Bateman, hides
his alternate psychopathic ego from his co-workers and friends as he
delves deeper into his violent, hedonistic fantasies.
The Company Men (2010): The
story centers on a year in the life of three men trying to survive a round
of corporate downsizing at a major company - and how that affects them,
their families, and their communities.
Glengarry Glen Ross (1992): More
focused on real estate than finance.
The Corporation (2003)
Documentary that looks at the concept of the corporation throughout recent
history up to its present-day dominance.
Wall Street Warriors (2006 ) An
HD documentary series examining the extreme power and intense competition
that defines Wall Street, seen through the eyes of those who thrive there.
Dealers (1989): The London
branch of Whitney Paine, a major American investment bank, is in the midst
of a crisis; after the loss of $100 million, one of their leading traders,
Tony Eisner commits suicide
The Bank (2001) The Bank is a
thriller about banking, corruption and alchemy.
Why Are We All in Debt? (2009):
26 minute documentary asks: How come we are all in debt? An Islamic
finance author and former bond-derivatives dealer Tarek El Diwany. He
points out that according to conventional wisdom, both the disease and the
cure of the financial crisis are the same: On the one hand, we are told
that our financial crisis is the result of too much debt. But then we are
told that the solution is that the banks lend more. How can that be?
The Last Day of Lehman Brothers
(2009) 60 minute film on the bankruptcy of Lehman Brothers.
Investment Banking (2011) 32
minutes on investment banking
The Flaw (2011) 78 minute analysis of the financial crisis
Chasing Madoff (2010): Stock
Market Scam
The China Hustle (2018): Finance
& Trade Documentary
Banking On Bitcoin (2017):
Financial Markets Documentary
Freakonomics (2010): A
collection of filmed economics-related documentaries exploring human
nature from the perspective of an economist and using statistical analysis
to explain phenomena and their causes.
Updated 04/13/2021
