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Richard H. Stanton - Haas School of Business, University of California, Berkeley. Berkeley, CA, US

Richard H. Stanton Richard H. Stanton

Professor | Kingsford Capital Management Chair in Business | Haas School of Business, University of California, Berkeley

Berkeley, CA, UNITED STATES

Leading expert on mortgage markets

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Areas of Expertise (4)

Mortgage and Lease Markets Term Structure Modeling Mutual Funds and Risk Management Employee Stock Options (ESOs)

About

Richard Stanton is a Professor of Finance and Real Estate and holds the Kingsford Capital Management Chair in Business at Berkeley Haas. His main research interests are mortgage and lease markets, term structure modeling, mutual funds and risk management, and employee stock options (ESOs).

Education (2)

Cambridge University (Jesus College): BA, Mathematics 1984

Stanford Graduate School of Business: PhD, Finance 1992

Honors & Awards (12)

Financial Management best paper prize

For “CMBS Subordination, Ratings Inflation, and Regulatory Capital Arbitrage”
2018

Earl F. Cheit Outstanding Teaching Award, MFE Program

Course: Fixed Income
2013

Nomination for Journal of Finance Brattle best corporate-finance paper prize

For “Human Capital, Bankruptcy and Capital Structure”
2010

Earl F. Cheit Award for Excellence in Teaching, Undergraduate Program

2007

Nomination for Journal of Finance Smith-Breeden best-paper prize

For “Managerial Ability, Compensation and the Closed-End Fund Discount”
2007

Best Paper award, Utah Winter Finance conference

Awarded for “A Liquidity-Based Model of Closed-End Funds”
2006

Schwabacher Fellowship

1996

Q Group Research Award

1994

UC Berkeley Junior Faculty Research Grant

1993-1994

Earl F. Cheit Award for Excellence in Teaching (Undergraduate Program)

1993

AACSB Doctoral Fellowship

1989

Science and Engineering Research Council (SERC) Overseas Studentship

1986-1989

Positions Held (1)

At Haas since 1991

2008 – present, Professor, Haas School of Business
1998 – 2008, Associate Professor, Haas School of Business
1991 – 1998, Assistant Professor, Haas School of Business

Media Appearances (15)

Bad, biased, and unethical uses of AI

The Enterprisers Project  online

2019-08-29

Looking at cases of unethical uses of AI can help managers avoid pitfalls. One such case was studied by Assoc. Prof. Adair Morse, Soloman P. Lee Chair in Business Ethics; Prof. Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets; and Prof. Richard Stanton, Kingsford Capital Management Chair in Business. In looking at online housing lenders, they found that even if the people writing the algorithms intended to create neutral systems, they've ended up discriminating against minority borrowers.

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Can algorithms be racist? Trump’s housing department says no

Reveal  online

2019-08-05

A new rule would would make it nearly impossible for banks, landlords, or insurance companies to be sued when their algorithms result in people of color being disproportionately denied housing. But algorithms aren't necessarily unbiased. Research by Assoc. Prof. Adair Morse, Prof. Nancy Wallace, and Prof. Richard Stanton has found that online lenders habitually charged borrowers of color higher interest rates than white borrowers with similar credit profiles.

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Knowing the “Value” of Our Data Won’t Fix Our Privacy Problems

Electronic Frontier Foundation  online

2019-07-15

Policies have been proposed that would put a dollar value on the data that companies collect from users. But that's not enough to protect consumers. For example, research by Assoc. Prof. Adair Morse, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, has found that data on potential borrowers was used to discriminate against non-white customers by online mortgage firms.

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Berkeley Haas’s Morse: FinTech Also Practices Housing Discrimination

Poets and Quants  online

2019-05-06

Assoc. Prof. Adair Morse of the Haas Finance Group, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Professor and Chair of the Real Estate Group, found that fintech lenders who use algorithms to determine mortgages are just as bad as traditional mortgage operations in discriminating against African American and Hispanic loan-seekers.

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Digital mortgages are here, but some buyers are hesitant to use them. Here's what you should know.

Chicago Tribune  online

2019-01-23

Algorithmic bias is replacing human bias in mortgage lending, according to research by professors Richard Stanton, Nancy Wallace, and Adair Morse.

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Women can benefit more from stock options study reveals

Wealth Professional Canada  online

2019-01-10

Work by professors Richard Stanton and Nancy Wallace has found that options awarded to women cost companies 2 percent-4 percent more than those given to men. Senior managers also cost more than lower-ranking colleagues. The difference comes from how long the employees hold them.

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Women Hold Onto Stock Options Longer—and Reap the Benefits

Fortune  online

2019-01-08

Women hold onto their stock options longer than men—which can mean employers pay out more, according to work by professors Richard Stanton and Nancy Wallace.

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Non-bank firms are now big players in America’s mortgage market

The Economist  

2018-11-29

As interest rates rise and the housing market stutters, regulators are again pondering the risks from the mortgage market—this time from a shift towards non-bank originators. A recent paper by Professors Nancy Wallace and Richard Stanton warned of the risks posed by non-bank US mortgage lenders, who now represent a large percent of all real estate loans. When banks stopped lending during the financial crisis, the number of mortgage companies fell by half, and non-bank lenders stepped in. Little is known about the finances of these private lenders, and their finances may be fragile.

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Online lending hasn't removed discrimination, study shows

CNBC  online

2018-11-27

A study by Assoc. Prof. Adair Morse, Prof. Richard Stanton, and Prof. Nancy Wallace, found that both online and face-to-face lenders charge higher interest rates to black and Latino borrowers.

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How some algorithm lending programs discriminate against minorities

NPR Morning Edition  radio

2018-11-24

Washington Post columnist Michelle Singletary discusses work by Assoc. Prof. Adair Morse, Prof. Richard Stanton, and Prof. Nancy Wallace, that found a bias in lending: for people with similar qualifications applying for home loans, race did play a factor.

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A little oil, a little Brexit and some puppets

Marketplace  radio

2018-11-16

Work by Assoc. Prof. Adair Morse, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, has found that there's bias in lending: for people with similar qualifications applying for home loans, race did play a factor.

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Even machines are discriminating against black and Latino homebuyers

Washington Post  online

2018-11-15

Research by Assoc. Prof. Adair Morse, Prof. Richard Stanton, Kingsford Capital Management Chair in Business, and Prof. Nancy Wallace, Lisle and Roslyn Payne Chair in Real Estate Capital Markets, has found that even with automation, mortgage bias exists.

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Are you a minority borrower? You might want to think twice about using an online lender.

Washington Post  online

2018-11-14

It’s not just bank loan officers with racial biases who discriminate against black and Latino borrowers. Computer algorithms do, too. That's the groundbreaking conclusion of Berkeley Haas researchers who found that both online and face-to-face lenders make 11% to 17% higher profits off black and Latino borrowers. The study was co-authored by Assoc. Prof. Adair Morse, Prof. Richard Stanton, and Prof. Nancy Wallace of Haas, along with Prof. Robert Bartlett of Berkeley Law.

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Mapping the boom in nonbank mortgage lending—and understanding the risks

Brookings  online

2018-09-10

The growth of nonbank mortgage issuers poses risks to borrowers, communities, and the U.S. government, writes Prof. Richard Stanton with his co-authors. In particular, nonbanks are dependent on short-term credit to finance their operations, and this credit can become more expensive, or dry up entirely, when financial market conditions tighten.

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A decade after housing bust, mortgage industry on shaky ground, experts warn

Phys.Org  online

2018-03-29

'"If these firms go out of business, the mortgage market shuts down, and that has dire Implications for the overall health of the economy," says Richard Stanton, professor of finance and Kingsford Capital Management Chair in Business at Haas. Stanton authored the Brookings paper, "Liquidity Crises in the Mortgage Market," with Nancy Wallace, the Lisle and Roslyn Payne Chair in Real Estate Capital Markets and chair of the Haas Real Estate Group. You Suk Kim, Steven M. Laufer, and Karen Pence of the Federal Reserve Board were coauthors...'

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Selected Papers & Publications (6)

Mortgage Loan-Flow Networks and Financial Norms Review of Financial Studies

R. Stanton, J. Walden and N. Wallace

2017

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CMBS Subordination, Ratings Inflation, and Regulatory-Capital Arbitrage Financial Management

R. Stanton and N. Wallace

2017

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Financial Flexibility, Bank Capital Flows, and Asset Prices Journal of Finance

R. Stanton, C. Parlour and J. Walden

2012

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Estimation of Dynamic Term Structure Models Quarterly Journal of Finance

R. Stanton and G. Duffee

2012

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The Bear’s Lair: Indexed Credit Default Swaps and the Subprime Mortgage Crisis Review of Financial Studies

R. Stanton and N. Wallace

2011

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Revisiting Asset Pricing Puzzles in an Exchange Economy Review of Financial Studies

Richard Stanton, Christine A. Parlour, and Johan Walden

2011

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Teaching (3)

Introduction to Finance

MBA 203

Continuous-Time Finance

PhD 239B

Fixed Income Markets

MFE 230I

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