Global Banks and Financial Institutions

Financial institutions, also known as banking institutions, are corporations that provide services as intermediaries for different types of financial monetary transactions. Broadly speaking, there are three major types of financial institutions.

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David K.A. Mordecai was Lead Advisor to a Global Bank

David K.A. Mordecai, President of Risk Economics®  and Compass Lexecon affiliated expert, was lead advisor 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, Dr. 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.

See Compass Lexecon 2013 Newsletter.

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David K.A. Mordecai was Involved in an International Financial Institutions Arbitration

Dr David K.A. Mordecai, President of Risk Economics® and Compass Lexecon affiliated expert, and Pablo Spiller, Senior Consultant at Compass Lexecon, led a team of economists and analysts from Compass Lexecon’s International Arbitration and Financial Litigation global practices engaged in providing financial econometrics expertise to develop and apply damage valuation models and analyses for financial institutions. These market-based financial econometric analyses can be applied to international arbitrations involving contractual and treaty disputes, such as those arising from the financial crisis. The Compass Lexecon team was coordinated by Sebastian Zuccon, Pablo Lopez Zadicoff and Michael Kwak.

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.

See Compass Lexecon 2013 Newsletter.

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David K.A. Mordecai Participated in the ISDA 25th Annual General Meeting

David K.A. Mordecai Participated in the ISDA 25th Annual General Meeting

David K.A. Mordecai was invited to speak at the International Swaps and Derivatives Association (ISDA) 25th Annual General Meeting on April 21-23, 2010 in San Francisco, CA.

Dr. Mordecai joined a panel discussion entitled Lessons from the Financial Crisis, moderated by Christopher L. Culp, Adjunct Professor of Finance, The University of Chicago Booth School of Business. The other panelists were David L. Mengle, Head of Research, ISDA, and Craig Pirrong, Professor of Finance, Bauer College of Business, University of Houston.

ISDA, which represents participants in the privately negotiated derivatives industry, is among the world’s largest global financial trade associations as measured by number of member firms. ISDA was chartered in 1985, and today has more than 800 member institutions from 55 countries on six continents. These members include most of the world’s major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to efficiently manage the financial market risks inherent in their core economic activities. ISDA’s AGM is the preeminent event of the derivatives and risk management industry.

David K.A. Mordecai Participated in the ISDA 25th Annual General Meeting

 

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David K.A. Mordecai Testified Regarding Industry Practices

David K.A. Mordecai, President of Risk Economics, testified regarding industry practices with regard to such funding obligations as well as the economics of those obligations.

Dr. Mordecai worked with Rob Cohen, Joe Serino, David Flugman, and Melody Wells of Kirkland & Ellis LLP on behalf of Tyson Partners L.P. (formerly known as Altaris Partners LLC), in a proceeding before the American Arbitration Association. Tyson Partners claimed, among other things, that AIG Global Asset Management Holdings Corp. failed to fulfill its funding obligations under the parties’ joint venture contract. Dr. Mordecai worked closely with Vince Warther of Compass Lexecon’s Chicago office in this matter, and testified regarding industry practices with regard to such funding obligations as well as the economics of those obligations.

The arbitration panel found for Tyson Partners on all claims and awarded all costs and attorneys’ fees.

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 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.

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