Economics and Finance

Finance can be broadly divided into three categories: Public finance, Corporate finance, Personal finance.

Risk Economics® Sponsored the IAFE/SunGard 2012 Financial Engineer of the Year Award Gala

Risk Economics Sponsored the IAFE/SunGard 2012 Financial Engineer of the Year Award Gala

Risk Economics sponsored the IAFE/SunGard 2012 Financial Engineer of the Year (FEOY) Award Gala Dinner honoring Dr. Robert (Bob) Litzenberger. Bob Litzenberger is Professor Emeritus of Investment Banking at The Wharton School of the University of Pennsylvania, and a Fellow of the American Finance Association. Bob Litzenberger currently serves as a consultant and Board Member of RGM Advisors, a high speed electronic trading firm.

Risk Economics® Sponsored the IAFE/SunGard 2012 Financial Engineer of the Year Award Gala

After receiving his PhD from UNC, Chapel Hill, Bob Litzenberger started his academic career at Carnegie-Mellon University. The following year, he joined the faculty of the Graduate School of Business at Stanford University where he eventually became C.O.G. Miller Distinguished Professor of Finance. At Stanford, he was very active teaching and advising PhD students. In 1986, Bob Litzenberger joined the faculty of The Wharton School at the University of Pennsylvania as the Edward Hopkinson Professor of Investment Banking. While on leave from Wharton, Bob Litzenberger served as Director of Research and Chief Economist at AIG-Financial Products and served on its Board of Directors. Upon returning to Wharton, he established a course in financial engineering.

Bob Litzenberger joined Goldman Sachs in 1995 as Director of Derivative Research and Quantitative Modeling in the Fixed Income Division. In 1998 he became Firm-wide Risk Manager and was actively involved in Goldman Sach’s assessment of Long Term Capital’s portfolio. Bob Litzenberger became a Partner in 1999 and retired from an active role in late 2001.

From 2002 to 2007 he served as an Executive Director of Azimuth Trust, a fund-of-funds for hedge funds. While at Azimuth he developed an analytical risk and allocation system that accounted for the fat tails associated with financial crises.

Bob Litzenberger was named Risk Manager of the Year by Risk Magazine in 2001 and inducted into their Risk Hall of Fame in 2003. He is a former President of both the American Finance Association and Western Finance Association.  He has been on the editorial boards of the Journal of Financial Economics, the Journal of Finance and the Journal of Financial Quantitative Analysis. Bob Litzenberger  has co-authored a doctoral level textbook on financial economics and published more than 50 articles in the leading academic finance journals, many of which were co-authored with former students.

The award was presented to Bob Litzenberger on February 7, 2013, at the recently opened National Museum of Mathematics (MoMath) in New York City, during the annual IAFE/SunGard FEOY Award Gala Dinner. The IAFE/SunGard FEOY Award, established in 1993, recognizes individual contributions to the advancement of financial engineering technology. Nominations are submitted by a nominating committee of approximately 100 people, consisting of all the IAFE governing boards. They are then reviewed in a two step process by a selection committee of 25 members, including the IAFE board of directors and senior fellows. The 2012 year’s selection committee was chaired by Dr. Peter Carr, an IAFE senior fellow and the 2010 FEOY award winner.

David K.A. Mordecai was Invited to Present at the NABE 2012 Annual Conference: Bridging the Gap Between Finance and the Real Economy

David K.A. Mordecai was Invited to Present at the NABE 2012 Annual Conference: Bridging the Gap Between Finance and the Real Economy

David K.A. Mordecai, President of Risk Economics, was invited to presented at the National Association of Business Economists (NABE) 2012 Annual Conference: Bridging the Gap Between Finance and the Real Economy, held on October 13-16, 2012 in New York City.

David Mordecai’s presentation was entitled Computational Economics and Big Data: How Technology is Transforming Business Decision Making. The other panelists were Will Tucker from Ideas42 and Peter Evans from GE, and Sara Potter from Factset served as moderator.

Other speakers included the following:

  • Sheila Bair, 19th Chairperson, U.S. Federal Deposit Insurance Corporation
  • Jagdish Bhagwati, Professor of Economics and Law, Columbia University
  • William C. Dudley, President, Federal Reserve Bank of New York
  • Roger W. Ferguson, President and Chief Executive Officer of the Teachers Insurance and Annuity Association, and former Vice Chairman of the Board of Governors of the Federal Reserve System
  • Glenn Hubbard, Dean, Columbia Business School
  • Vincent Reinhart, Managing Director and Chief U.S. Economist, Morgan Stanley
  • Robert Shiller, Arthur M. Okun Professor of Economics, Yale University

David K.A. Mordecai was Invited to Present at the NABE 2012 Annual Conference: Bridging the Gap Between Finance and the Real Economy

NABE is the premier professional association for business economists and others who use economics in the workplace. Since 1959, NABE has attracted the most prominent figures in economics, business, and academia to its membership with highly-regarded conferences, educational and career development offerings, industry surveys, and its unrivaled networking opportunities. NABE membership is organized into subject-oriented Roundtables including: Corporate Planning, Financial, Health Economics, International, Manufacturing/ Industry, Small Business/ Entrepreneurship, Real Estate/ Construction, Regional/Utility, Technology and Transfer Pricing. Past presidents of NABE include former Chairman of the Board of Governors for the Federal Reserve System, Alan Greenspan, several former Federal Reserve Governors, and other senior business leaders. NABE’s mission is to provide leadership in the use and understanding of economics.

Risk Economics® Sponsored the IAFE/SunGard 2011 Financial Engineer of the Year Award Gala

Risk Economics Sponsored the IAFE/SunGard 2011 Financial Engineer of the Year Award Gala

Risk Economics® sponsored the IAFE/SunGard 2011 Financial Engineer of the Year (FEOY) Award Gala Dinner honoring Dr. Robert Engle.

Robert Engle is an expert in time series analysis with a long-standing interest in the analysis of financial markets. His ARCH model and its generalizations have become indispensable tools not only for researchers, but also for analysts of financial markets, who use them in asset pricing and in evaluating portfolio risk. His research has also produced such innovative statistical methods as cointegration, common features, autoregressive conditional duration (ACD), CAViaR and now dynamic conditional correlation (DCC) models.

He is currently the Director of the newly created NYU Stern Volatility Institute and is the Co-founding President of the Society for Financial Econometrics (SoFiE), a global non-profit organization housed at New York University. Before joining NYU Stern School of Business in 2000, Robert Engle was Chancellor’s Associates Professor and Economics Department Chair at the University of California, San Diego, and Associate Professor of Economics at the Massachusetts Institute of Technology (MIT).

Financial Engineer

The award was presented to Robert Engle on February 2, 2012, at the New York Stock Exchange in New York City, during the annual IAFE/SunGard FEOY Award Gala Dinner. The IAFE/SunGard FEOY Award, established in 1993, recognizes individual contributions to the advancement of financial engineering technology. Nominations are submitted by a nominating committee of approximately 100 people, consisting of all the IAFE governing boards. They are then reviewed in a two step process by a selection committee of 25 members, including the IAFE board of directors and senior fellows. The 2011 year’s selection committee was chaired by Dr. Richard Roll, an IAFE Senior Fellow and the 2009 FEOY award winner.

David K.A. Mordecai was Invited to Present at a Conference Sponsored by the Department of Treasury Office of Financial Research and Financial Stability Oversight Council

David K.A. Mordecai was Invited to Present at a Conference Sponsored by the Department of Treasury Office of Financial Research and Financial Stability Oversight Council

David K.A. Mordecai, President of Risk Economics, was invited to present at The Macroprudental Toolkit: Measurement and Analysis Conference sponsored by the Department of Treasury Office of Financial Research (OFR) and Financial Stability Oversight Council (FSOC). David K.A. Mordecai served as a panelist for a discussion based on the OFR working paper entitled Forging Best Practices in Risk Management that he co-authored with Mark Flannery of University of Florida, Paul Glasserman of Columbia University and the Department of Treasury Office of Financial Research, and Clifford Rossi of University of Maryland. The conference was held on December 1-2, 2011, in Washington, D.C.

This invitation-only conference brought together thought leaders from the financial regulatory community, academia, public interest groups, and the financial services industry to discuss data and technology issues, as well as analytical approaches for assessing threats to financial stability. Presentations included invited papers, panel discussions, and keynote addresses by senior leaders in the financial regulatory community. Workshops considered data and technology challenges associated with analyzing threats to financial stability.

David K.A. Mordecai was Invited to Present at a Conference Sponsored by the Department of Treasury Office of Financial Research and Financial Stability Oversight Council

On March 26 2012, the Office of Financial Research (OFR) issued Forging Best Practices in Risk Management, as the second paper of its Working Paper Series to promote best practices in financial risk management. This paper provides a broad assessment of risk management practices and makes recommendations from the three perspectives of risk measurement, risk governance and systemic risk tradeoffs.

To read the announcement and the paper, see the following:

Arkansas Jury Accepted Testimony by Expert David K.A. Mordecai for Bayer Cropscience

Arkansas Jury Accepted Testimony by Expert David K.A. Mordecai for Bayer Cropscience

An Arkansas jury accepted testimony by expert David K.A. Mordecai for Bayer Cropscience. Compass Lexecon has been involved in the ongoing litigation related to the release of genetically modified rice into the domestic US rice supply by Bayer CropSciences in 2006. Hundreds of cases have been filed by US rice farmers and millers claiming they were damaged by the release because various countries curtailed rice imports in response to concerns that US rice might contain traces of genetically modified rice. Compass Lexecon was retained by Bartlit Beck Herman Palenchar & Scott LLPon behalf of Bayer CropScience to estimate damages to US rice farmers and millers. Compass Lexecon experts and affiliates submitted reports in a number of cases, only one of which has gone to trial at this point. In that case, Compass Lexecon affiliate David K.A. Mordecai testified on behalf of Bayer, and the jury accepted his estimate of damages and rejected plaintiff’s experts’ estimate.

Compass Lexecon experts Professor Daniel Fischel and Dr. Gustavo Bamberger submitted reports in other cases, and Dr. Vincent Warther and Lynette Neumann headed up the support teams in the Chicago Compass Lexecon office. In connection with work in these cases, Compass Lexecon worked with Mark Ferguson, Eric Olson, Glen Summers, John Hughes, Les Houtz and others at Bartlit Beck Herman Palenchar & Scott LLP.

Doyle Sims, et al. vs. Bayer Cropscience, LP, et al., In the Circuit Court of Desha County, Arkansas, Civil Division, Case No. CV-2009-118-3, (damages from alleged contamination of U.S. rice crop), testimony at trial on behalf of Bayer defendants, July 2010.

Arkansas Jury Accepted Testimony by Expert David K.A. Mordecai for Bayer Cropscience

David K.A. Mordecai is President and Co-Founder of Risk Economics, a New York City based advisory firm. 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. Dr. Mordecai is Senior Advisor to, and a Member of the Advisory Committee of, Compass Lexecon.

As lead for the Risk Economics® litigation and arbitration advisory practice, David 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.

David K.A. Mordecai was Appointed to the Courant Institute Financial Mathematics Advisory Board

David K.A. Mordecai was Appointed to the Courant Institute Financial Mathematics Advisory Board

David K.A. Mordecai, President of Risk Economics, was invited to join the Advisory Board for the Financial Mathematics program at Courant Institute of Mathematical Sciences NYU. The advisory board is  is comprised of leaders in quantitative finance from industry as well as distinguished academic researchers in the field.

David K.A. Mordecai, PhD is President of Risk Economics, Inc., and has served as guest lecturer for the M.Sc. program in Financial Mathematics at Courant Institute during 2005, 2006 and 2010. Risk Economics provides advisory services at the intersection of commercial business-process engineering and risk engineering with a particular focus on coupling commercial reinsurance and financial technology, through the rigorous application of agent-based, demographic, and statistical methodologies to microeconomic and macroeconomic analytics.

David K.A. Mordecai was Appointed to the Courant Institute Financial Mathematics Advisory Board