Stanley Fischer it strongly appears plagiarized Nils Hakansson in Fischer’s 1969 MIT thesis and then participated in a business conspiracy since then to deny Hakansson credit. This included concealing this from his co-author Olivier Blanchard who in 2004 did not even know that Fischer’s thesis was on dynamic programming and multiple period portfolio rebalancing as part of the 1960s effort to find the microfoundations of macroeconomics.
Russia then used that plagiarism and the business conspiracy, and other cases of plagiarism that piggybacked on this to get Nobel Prize nominations in economics for Kantorovich in 1975, likely also Nobel Prize nominations for Kapitsa in 1978 and then IMF loans for Russia in the 1990s. LTCM and DE Shaw traded Russian government bonds possibly knowing this.
Dominique Strauss Kahn became IMF head in 2007 and engaged in sexual harassment there. The IMF tried to cover it up and protect him.
The following is taken from the previous post:
Dominque Strauss Kahn used his position at the IMF to sexually harass women. He was minister of Finance of France from 1997 to 1999 while Russia was using plagiarism kompromat on Stanley Fischer and Larry Summers to get IMF loans. In 1997, the Lyapunov Institute a joint venture of INRIA France and Moscow State University started a Mathematical Finance Project, Project 97-03, under Agnes Sulem and Albert Shiryaev. Shiryaev appears to handle the plagiarism folder in mathematical finance for Russia. Although presumably younger profs are now doing most of the work.
The arrest of Dominique Strauss-Kahn on sexual assault and attempted rape charges has prompted fresh scrutiny of the International Monetary Fund’s dismissal of accusations that its director abused his power to pressure a subordinate into sleeping with him three years ago.
The investigation concurred and the IMF took no action against Strauss-Kahn other than to say that he had shown poor judgment.
But Nagy vigorously disagreed with that conclusion,
However, leaks to the press backed Strauss-Kahn’s claim he had not put pressure on Nagy. She expressed disquiet that the leaks were intended to steer attention away from Strauss-Kahn’s abuse of power.
Head of IMF 1 November 2007 – 18 May 2011
Minister of Finance of France 4 June 1997 – 2 November 1999
Nicole El Karoui is a French mathematician, and pioneer in the development of Mathematical Finance, born May 29, 1944 in Paris (maiden name “Nicole Schvartz”). She is considered to be one of the very active mathematician that started heavily promoting Financial Mathematics in France and trained many engineers and scientists to this field.
The reputation of Professor El Karoui’s classes is such that Wall Street Journal opines that there may be too many of her students in important positions handling financial derivatives. In an interview with the Wall Street Journal, Rama Cont, a well-known mathematician, described a degree with Ms. El Karoui’s name on it as “the magic word that opened doors for young people.” 
El Karoui is the co-director, with Marc Yor and Gilles Pagès, of the Master of Advanced Studies program Probability & Finance, jointly operated by École Polytechnique and the Pierre and Marie Curie University (Paris VI), which she co-founded with Helyette Geman. This program, usually called “DEA El Karoui”, is one of the most prestigious program in quantitative finance in the world and No 1 in France.
Most of the Lyapunov Institute has been taken off the Internet. This was a French Russian joint venture starting in 1993.
The A. M. Liapunov French-Russian Institute was established in 1993 in accordance with the agreement between the National Research Institute for Informatics and Automatics (INRIA, France) and the M. V. Lomonosov Moscow State University (MSU, Russian Federation) and in accordance with the agreement (26 June 1992) between the Russian Federation and France on scientific and technical cooperation.
The official inauguration of the A. M. Liapunov French-Russian Institute took place in November 19 of 1993 with the participation of the French Ambassador to Russia and the Deputy Minister of Science of the Russian Federation.
The main aim of the A. M. Liapunov French-Russian Institute is to promote the scientific cooperation between Russian and French researchers in the framework of joint projects. The A. M. Liapunov Institute is equipped with computers and office facilities necessary for the realization of this cooperation. The Institute’s technical equipment is used by the participants of joint projects and in the process of education.
The A. M. Liapunov French-Russian Institute is a scientific and educational institution of Moscow State University.
The A. M. Liapunov French-Russian Institute is managed by a Scientific Council formed of Russian and French scientists on the equal basis by MSU and INRIA. The Scientific Council’s meetings are held alternately in France and Russia at least once a year. The current administration is performed by the Directorate (a director from the INRIA side and a director from the MSU side). The directors are appointed according to the agreement between MSU and INRIA and are members of the Scientific Council.
The scientific activity of the A. M. Liapunov French-Russian Institute is conducted in the framework of joint research projects. Each year the Institute launches a call for proposals. The selection of submitted proposals is performed by the Scientific Council.
The main directions of activity:
fundamental and applied scientific studies in the framework of joint research projects; arrangements of scientific conferences and seminars; publication of scientific literature and information materials; educational and information-scientific activity. Source: liapunov.inria.msu.ru/ru/index.html
Directeur de Recherche
Responsable Scientifique du projet de recherche en Mathématiques du Risque “MATH-RISK”
Domaine de Voluceau
BP 105 – 78153 Le Chesnay cedex – France
A. Shiryaev and A. Sulem eds. Mathematical Finance, Workshop Inria June 1998.
Albert Shiryaev and Agnes Sulem ran the Mathematical Finance Project of the Lyapunov Institute that started in 1997, Project 97-03.
It is mostly known for:
The French Institute for Research in Computer Science and Automation (French: Institut national de recherche en informatique et en automatique, INRIA) is a French national research institution focusing on computer science and applied mathematics. It was created in 1967 at Rocquencourt near Paris, part of Plan Calcul. Its first site was the historical premises of SHAPE (central command of NATO military forces).
If one follows the links to Liapunov Institute, they dead end.
A. Shiryaev submitted for publication the first and the second volume of the book “Essentials of Stochastic Finance}” (in Russian).
The book is now being translated into English by the publishing house World Scientific (Singapour). The author acknowledges the help of Liapunov institute.
A. Sulem and A. Shiryaev, “One-time optimal correction in Black-Scholes model”, (to be submit).
A. Sulem and A. Shiryaev, “Self exciting controlled point process in the diffusion environment”, (to be submit).
J. Jacod and A. Shiryaev, “Local martingales and the fundamental asset pricing theorems in the discrete-time case” ( publication 362 du laboratoire de probabilites de l’universite Paris VI).
C. Martini “On the marginal laws of one-dimensional stochastic integrals with uniformly elliptic integrand”, ( preprint) .
S. Aspandiiarov, J.-M. Bottazzi and N. Rabinowitz, “Risk measure and investment”. (Internal paper, Credit Suisse).
B. Lapeyre, A. Sulem and D. Talay are writing a book “Understanding Numerical Analysis for Financial Models” (to be published by Cambridge University Press).
French-Russian organized joint workshop
We organise in May 18 and 19th at INRIA Rocquencourt a workshop on mathematical finance where most of the french and russian partners of the project will participate. The Russian participants will stay in France from 16 to 21 May.
The program of the workshop with the titles of the conferences presented is listed below:
A. Shiryaev: On arbitrage for stochastic models based on fractal Brownian motion.
A. Tchernyi: Vector stochastic integrals in the fundamental theorem of asset pricing.
S. Volkov: Hedging in markets with imperfections.
M. Netchaev: On mean-variance hedging.
E. Iagniatinski: On a stopping investment problem.
L. Vostrikova, A. Shiryaev: On Girsanov’s Exponential and law of the iterated logarithm.
E. Boguslavskaya: “On optimization of investments of uncertain cost”.
Claude Martini: Option pricing with unknown volatility for real-life payoffs.
Agnes Sulem: Potfolio Selection Model with transaction costs.
Marc Yor : Results on path dependant Options.
Monique Jeanblanc: Financial Markets when the dynamics of prices are driven by a mixed diffusion process.
Moreover, it is planned to have discussions on stable processes, on the n-time optimal corrections in Black-Scholes , and some other topics with all the participants.
The flights from Russia of the Russian Participants are financed by the Russian side of the Liapounov Institute and the stays and accomodation in Paris as well as the organisation of the workshop by the French side.
Congress on mathematical finance and insurance in Moscow, October 1997.
S. Aspandiiarov, A, Shiryaev, J. Jacod and A. Sulem had mini workshops in July and in December 1997 in Paris.
A. Sulem & A. Shirayev
Scientific report over the period of 1998-1999
We believe that the program of the project “Matematical Finance” over the period of 1998-1999 has been executed.
The research results of the project participants are reflected in the following papers and books:
A.N. Shiryaev has written the book “Essentials of Stochastic Finance”. The Russian edition of the book was published by Phasis (Moscow) in 2 volumes. The English translation of the book was published by World Scientific (Singapore).
A. Sulem, A.N. Shiryaev. One-time optimal correction in Black-Scholes model. Manuscript.
A. Sulem, A.N. Shiryaev. Self exciting controlled point processes in the diffusion environment. Manuscript.
R. Douady, A.N. Shiryaev, M. Yor. On the distribution of “falls” for the Brownian motion. Probability Theory and its Applications, 1999, v. 44, 2.
Graversen S.E., Shiryaev A.N. An extension of P.Levy’s distributional properties to the case of a Brownian motion with drift. Research Report No.22 (September 1998), Centre for Mathematical Physics and Stochastics, Aarhus University (to be published in Bernoulli).
J. Jacod, A.N. Shiryaev. Local martingales and the fundamental asset pricing theorems in the discrete-time case. Publication 362 du laboratoire de Probabilites de l’Universite Paris VI.
G. Peskir, A.N. Shiryaev. Sequential Testing Problems for Poisson Processes. Department of Theoretical Statistics, University of Aarhus, Research Report No.400.
A.N. Shiryaev. On arbitrage for stochastic models based on fractal Brownian motion. Proceedings Workshop on Mathematical Finance, INRIA, 1998.
A.N. Shiryaev, A.S. Cherny. Some Distributional Properties of the Brownian Motion with a Drift and an Extension of P. Levy’s Theorem. Probability Theory and its Applications, 1999, v. 44, 2.
C. Martini. On the marginal laws of one-dimensional stochastic integrals with uniformly elliptic integrand. Potential Analysis.
S. Aspandiarov, J.-M. Bottazzi, N. Rabinowitz. Risk measure and investement. Internal paper, Credit Suisse.
B. Lapeyere, A. Sulem and D. Talay have written the book “Understanding Numerical Analysis for Financial Models”. The book will be published by Cambridge University Press.
M. Akian, A. Sulem, M. Taksar. Ergodic Multidimensional Diffusion Dynamic Portfolio Selection Model. Rapport de recherche INRIA, 1999.
N.C. Framstad, B. Oksendal, A. Sulem. Optimal Consumption and Portfolio in a jump Diffusion Market. Proceedings Workshop on Mathematical Finance, INRIA, 1998.
A.S. Cherny. Vector stochastic integrals in the Fundamental Theorem of Asset Pricing. Uspekhi Mat. Nauk., 1998, v. 53, 4.
A.S. Cherny. Convergence of some integrals associated with Bessel Processes. Probability Theory and its Applications.
A.S. Cherny. Families of the adapted probability measures. Probability Theory and its Applications.
P.V. Gapeev. Calculation of the upper and lower prices of European-type options. Uspekhi Mat. Nauk, 1997, v. 52, 4.
P.V. Gapeev. On the proof of First Fundamental Theorem of Asset Pricing. Uspekhi Mat. Nauk., 1998, v. 53, 6.
P.V. Gapeev. Bayesian problem of sequential testing for fractional Brownian motion. Uspekhi Mat. Nauk.
M.L. Nechaev. On the optimal investments on futures market. Uspekhi Mat. Nauk., 1997, v. 52, 2.
M.L. Nechaev. Optimal investment strategy on futures market. Risk Management (Russia), 1997, 1.
A.V. Melnikov, M.L. Nechaev. Towards the question of the mean-variance hedging of contingent claims. Probability Theory and its Applications, 1998, v. 43, 4.
M.L. Nechaev. On mean-variance hedging in Ho-Lee’s diffusion type model. Probability Theory and its Applications, 1999, v. 44, 1.
The workshop “Mathematical Finance” was held in the INRIA in May, 1998. The proceedings of the workshop (13 papers) were published by the INRIA’s Publishing Department as a special issue (230 pages).
The personal meetings of the project participants were arranged in Paris, Lisbon, Aarhus, with the purpose of discussing the problems of mathematical finance as well as of writing articles jointly.
The development of the educational program “Actuarial and Financial Mathematics” at the Department of Mechanics and Mathematics (Moscow State University) is an important and stimulating result of the discussions related to the problems existing in mathematical finance. (The lectures on “Actuarial and Financial Mathematics” are delivered within 3 semesters.)
The Kolmogorov scientific conference of students and post-graduate students was held at the Department of Mechanics and Mathematics (Moscow State University) on April 28, 1999. Many of the conference reports pertained to mathematical finance. These reports had been prepared under the direction of the project participants.
Starting in 2001 to 2002 the Archive in this link does not go anywhere on the Mathematical Finance project.
The 1997 to 1999 period gave Dominique Strauss-Kahn as Minister of Finance of France the chance to learn a great deal. That included on the then current plagiarism kompromat IMF loan activity of Russia while Fischer was handling IMF loans. Anatoly Chubais was the contact man for Russia to Summers and Fischer on IMF loans. He was the one Putin mentioned as having CIA advisers meaning Shleifer during this time period. US v Harvard, Shleifer and Hay started in 1997. Hay received a Ph.D. in math from Steklov Institute in 2003.
Albert Shiryaev likely helps the Russian intelligence handle academic kompromat on mathematical finance. The 1999 book funded by INRIA also cites the Lin Chen 3 factor model. That was done at Harvard and the Federal Reserve Board and itself can be investigated for failure to cite its sources. Federal Reserve Board personnel themselves said that to colleagues in the 1990s is my recollection. Shiryaev was using this as additional leverage on Stanley Fischer and Larry Summers for Russia. The different plagiarism cases run together. Lin Chen is now back in China, possibly helping them with this analysis including reverse engineering parts of this that Russia did without China being involved.
France may have pulled the plug on the French Russian Lyapunov Institute when it realized the Russians were using it for IMF kompromat, spying, and building their academic and investment banking network. In particular, the 1999 Shiryaev book is full of citations and references that make it clear that Shiryaev knew about others cases of plagiarism in academic finance including those then going and including the Lin Chen 3 factor model that implicated the Federal Reserve itself. Additional information could then easily flow to Dominique Strauss-Kahn in the narrow world of French academia, finance and government.
Russia is using these methods to build a network deep inside of university academic departments in all Western countries and from there into the investment banks and likely regulatory institutions such as the Federal Reserve. Stanley Fischer’s appointment as Vice Chairman of the Federal Reserve will assist them in their network development throughout financial services, academia and Western governments.
The above is hypotheses and speculation. Please restate as questions. All other disclaimers apply.