David K.A. Mordecai, Compass Lexecon affiliated expert and President of Risk Economics®, was lead adviser to a global bank, providing technical oversight as well as interpreting regulatory guidance to a global bank for the development and implementation of a stress-testing model framework in accordance with BIS, FDIC, OCC and Federal Reserve guidelines and with generally accepted market practice. Compass Lexecon staffers Michael Kwak and Tristram Worth assisted Dr. Mordecai in the development and implementation of a forward-looking hierarchical model which simulated macroeconomic conditions with corresponding representative market spreads of the bank’s risk exposures, by employing benchmark US Treasury, equity, mortgage, alternative investments, municipal, and foreign investment indices.
David K.A. Mordecai is President and co-founder of Risk Economics, a New York City based advisory firm, as well as Senior Advisor to and a Member of the Advisory Committee of Compass Lexecon. The Risk Economics® litigation advisory practice provides advisory services and testimonial expertise on complex issues related to financial instrument valuation models and frameworks, market and industry standards and practices for the financing, risk management, active trading, and hedging of OTC derivatives and structured products.
As lead for the Risk Economics litigation and arbitration advisory practice, David K.A. Mordecai serves as an expert on loss causation and economic damages related to market structure, financial institutions governance, and complex issues related to finance, economics and market standards and practices within securities, derivatives, reinsurance, and commodities markets, as well as market structure within a broad range of non-financial industry sectors. His expertise includes industrial and financial engineering, the valuation of fixed income securities and structured products, including over-the-counter derivatives (in particular fixed income and credit derivatives), complex insurance and reinsurance liabilities, as well as asset liability and risk management models and practices. Having testified extensively at deposition, trial, arbitration and international arbitration, he has been admitted as an expert in federal, state and county courts, and cited favorably in court decisions.