Monday’s Headlines: Yale’s New MBA Stirs Controversy

When Yale launched its School of Management in 1976, the goal was to groom leaders in the government and philanthropy. But with a new $222 million investment and deal, the school is taking on Harvard and Wharton as a leading MBA program – aiming to boost its ranking from 21st to the top five. Sounds great – to everyone except for some alumni, as Businessweek details in a story.

The new dean, Edward “Ted” Snyder, who previously headed University of Chicago and University of Virginia’s business schools, insists that “Yale can improve without giving up the public- mindedness that sets it apart,” the story said, quoting Snyder: “The world is facing extraordinarily big issues. Leaders have to be aware of what’s going on. Obviously they need to be competent in solving business problems but they need to be in tune with this extraordinarily important layer of complexity. We’ve got some great people here who can help the world solve some big problems.”

Some graduates worry that the changes – which, in addition to a new monster building, Snyder aims to boost Yale’s relationship with recruiters from top financial firms – will diminish the school’s success in creating leaders in the public sectors. Said one 1980 graduate of the program: “The rankings are distorting a business school’s ability to do something outside of the box. Yale should be able to get away with it because it’s Yale.”

 

Other News:

Allstate warned its insurance agents it discovered errors in their tax documents which will affect bonuses. [WSJ]

SEC scrutinizes private equity. [DealBook]

Goldman’s is in talks with NorthStar Realty regarding its stake in Chicago’s John Hancock Center. [Bloomberg]

Prudential Financial hired Bank of America Merrill Lynch to advise it on a possible bid for the Asian insurance operations of ING. [Reuters]

Louis Moore Bacon may be considering transforming his Moore Capital hedge fund into a “family office,” managing primarily his own capital. [Fortune]

Western & Southern Financial sold the assets of its independent broker-dealer, Capital Analysts, to Lincoln Investment Planning. [Investment News]

Envestnet, which provides a technology platform to help financial advisors manage client assets, will buy Prima Capital of Denver for $14 million. [Investment News]

Net income for the State Bank of India rose 15 percent to $664 million for the three months ended Dec. 31. [Bloomberg]

Australia & New Zealand Banking Group will cut 1,000 positions by Sept. 30 and has frozen pay for its top executives. [Businessweek]