NYALT Episode 97
A Fireside Chat With William Silber
Professionals across global markets face moments when taking bold risks is the only path forward. In this riveting NY-AIR episode, legendary NYU professor William Silber joins host Bob Atkinson to break down “The Power of Nothing to Lose”—from Wall Street trading desks and Silicon Valley banks to war rooms and civil rights protests. Discover how downside protection shapes risk-taking, why asymmetric payoffs can drive “Hail Mary” decisions, and actionable lessons for financial leaders confronting uncertainty.
Featured Guests
William L. Silber
Former Marcus Nadler Professor of Finance & Economics, NYU Stern
Author: "The Power of Nothing to Lose"
A true titan in financial education, William L. Silber is renowned for his decades-long impact at NYU Stern, where he was honored three times as Professor of the Year and directed the Glucksman Institute for Research in Securities Markets. Silber’s influence stretches far beyond academia: he advised the President’s Council of Economic Advisors, sat on the Federal Reserve’s Economic Advisory Panel, and actively traded options on the New York Mercantile Exchange. His eight books—including the acclaimed "The Power of Nothing to Lose"—have shaped thinking on risk, markets, and historical turning points. Silber is frequently cited on regulatory policy, behavioral finance, and innovation in investment strategy, making him one of the most sought-after thought leaders in the field.
Robert Akeson
Managing Director, Kabeelah | NY-AIR Podcast Host
Robert Atkinson is a respected innovator in financial reporting and enterprise solutions, renowned for transforming Kabeelah into a global leader in statutory lease reporting for organizations of all sizes. With a background in scaling technology-driven finance businesses, Bob’s expertise spans SAP ecosystems, international consulting, and operational restructuring. As the host of NY-AIR, Bob brings a practitioner’s eye and dynamic platform experience to every conversation—facilitating meaningful dialogue between senior finance executives, innovators, and academics.
Key Insights From This Episode
The “Hail Mary Effect” Drives Risk-Taking Across Contexts
When individuals or institutions believe they have nothing to lose, they will often take outsized risks, seeking the largest variance and upside, whether in trading, war, or activism.
Downside Protection Fuels Asymmetric Payoffs
Mechanisms like bonuses for traders, government bailouts, and options contracts create scenarios where decision-makers pursue high-variance strategies with minimal personal downside, raising the stakes for collateral damage and systemic risk.
Collaboration and Oversight Remain Vital
Even amid strong incentives for risk, effective checks and balances—from trading desk managers to regulatory structures like the Volcker Rule—are essential to preserving stability and re-aligning incentives.
Risk-Taking Extends Beyond Finance
Examples from war (Battle of the Bulge), civil rights (Rosa Parks), and medicine (experimental treatments) show how the power of nothing to lose fuels pivotal, sometimes world-changing decisions outside of finance.
More Leverage, More Risk: The Banking System Lesson
Fractional reserve banking’s inherent leverage magnifies incentives for risk-taking, reinforcing the need for capital buffers, robust regulation, and a nuanced understanding of asymmetric payoffs.
Unexpected Findings in Human Behavior
Careful study reveals that “nothing to lose” is more complex than it seems—life prisoners’ behavior, for instance, is shaped by privileges and incentives, while short-term inmates may act more recklessly.
Access the Full Conversation
Don’t miss this powerful exchange—where historical insights meet practical strategy for the financial services industry. Stream the full episode now to hear debate, stories, and actionable frameworks for managing risk and shaping institutional culture. Download the custom insights deck for ideas that drive resilient, high-performing teams and strategies.
Unlock real-world value that empowers financial professionals navigating today’s volatile landscape.
Soundbites Worth Saving
“The most important decision people have to make is that when you have downside protection, you tend to take reckless decisions—and that can produce collateral damage.”
— William L. Silber
“Giving someone nothing to lose is dangerous. Hail Mary decisions often create social costs that demand government or peer intervention.”
— William L. Silber
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