Areas of Expertise (4)
Mortgage and Lease Markets
Term Structure Modeling
Mutual Funds and Risk Management
Employee Stock Options (ESOs)
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).
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”
Earl F. Cheit Outstanding Teaching Award, MFE Program
Course: Fixed Income
Nomination for Journal of Finance Brattle best corporate-finance paper prize
For “Human Capital, Bankruptcy and Capital Structure”
Earl F. Cheit Award for Excellence in Teaching, Undergraduate Program
Nomination for Journal of Finance Smith-Breeden best-paper prize
For “Managerial Ability, Compensation and the Closed-End Fund Discount”
Best Paper award, Utah Winter Finance conference
Awarded for “A Liquidity-Based Model of Closed-End Funds”
Q Group Research Award
UC Berkeley Junior Faculty Research Grant
Earl F. Cheit Award for Excellence in Teaching (Undergraduate Program)
AACSB Doctoral Fellowship
Science and Engineering Research Council (SERC) Overseas Studentship
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
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.
Can algorithms be racist? Trump’s housing department says no
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.
Knowing the “Value” of Our Data Won’t Fix Our Privacy Problems
Electronic Frontier Foundation online
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.
Berkeley Haas’s Morse: FinTech Also Practices Housing Discrimination
Poets and Quants online
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.
Digital mortgages are here, but some buyers are hesitant to use them. Here's what you should know.
Chicago Tribune online
Algorithmic bias is replacing human bias in mortgage lending, according to research by professors Richard Stanton, Nancy Wallace, and Adair Morse.
Women can benefit more from stock options study reveals
Wealth Professional Canada online
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.
Women Hold Onto Stock Options Longer—and Reap the Benefits
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.
Non-bank firms are now big players in America’s mortgage market
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.
Online lending hasn't removed discrimination, study shows
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.
How some algorithm lending programs discriminate against minorities
NPR Morning Edition radio
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.
A little oil, a little Brexit and some puppets
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.
Even machines are discriminating against black and Latino homebuyers
Washington Post online
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.
Are you a minority borrower? You might want to think twice about using an online lender.
Washington Post online
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.
Mapping the boom in nonbank mortgage lending—and understanding the risks
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.
A decade after housing bust, mortgage industry on shaky ground, experts warn
'"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...'
Selected Papers & Publications (6)
R. Stanton, J. Walden and N. Wallace
R. Stanton and N. Wallace
R. Stanton, C. Parlour and J. Walden
R. Stanton and G. Duffee
R. Stanton and N. Wallace
Richard Stanton, Christine A. Parlour, and Johan Walden
Introduction to Finance
Fixed Income Markets