THE FINANCIAL INDUSTRY IN A POST-CRISIS WORLD · PDF fileTHE FINANCIAL INDUSTRY IN A POST-CRISIS WORLD SYMPOSIUM ... Evan Picoult, Managing Director, Franchise Risk Architecture, Citi

THE FINANCIAL INDUSTRY IN A POST-CRISIS WORLD SYMPOSIUM

Hosted Jointly by the Center for Financial Policy at the Robert H. Smith School of Business at the

University of Maryland and The Clearing House REGULATION AND THE SHADOW BANKING SYSTEM…………….9:00-10:30 a.m. Panelists: Laura Kodres, Division Chief for the Global Financial Stability Division, Monetary and Capital Markets, International Monetary Fund Dr. Laura E. Kodres is currently an Assistant Director and Division Chief for the Asian Division in the Institute for Capacity Development at the International Monetary Fund. She holds a B.S. in Economics from the University of California at Davis and a Ph.D. in Economics from Northwestern University in Evanston, Illinois. She has held positions at the Chicago Mercantile Exchange, the Commodity Futures Trading Commission and at the Federal Reserve Board. She has been with the International Monetary Fund since 1994, holding a variety of positions, including Division Chief for the Global Financial Stability Analysis Division in the Monetary and Capital Markets Department. Nellie Liang, Director, Office of Financial Stability Policy and Research, Board of Governors of the Federal Reserve System Nellie Liang is the Director of the Office of Financial Stability Policy and Research (OFS) at the Federal Reserve Board. OFS is responsible for conducting and coordinating work at the Board relating to analyzing emerging and structural risks to financial stability and developing policies to mitigate systemic risks. Ms. Liang’s recent research has focused on fragilities in short-term funding markets, effect of creditor rights on real economic activity, and the cost of equity capital and corporate payout policies. Her research has been published in Journal of Finance, Journal of Financial Economics, Journal of Financial and Quantitative Analysis, and Journal of Public Economics, among other places. She received her PhD in economics from the University of Maryland.

David Modest, Founding Partner of Blue Mesa Capital Management David Modest is a Founding Partner of Blue Mesa Capital Management — a new asset management firm specializing in direct and indirect investing across a broad cross-section of global financial markets. Previously, he was at Soros Fund Management (SFM) where he was Head of External Manager Investments and Manager Selection, a member of the firm’s Investment and Risk Committees, and also was Head of Quantitative Research-Driven Investments. Prior to joining SFM, Modest was a Managing Director at J.P. Morgan Chase from September 2005 to September 2008.

Prior to J.P. Morgan Chase, he was a Senior Advisor to Azimuth Trust from February 2005 to September 2005 and a Managing Director at Azimuth Alternative Asset Management LLP from April 2003 to February 2005. Prior to Azimuth, Modest was a Managing Director at Morgan Stanley & Co. Inc. from November 1999 to May 2003, a founding member and Principal at Long Term Capital Management LP from September 1993 to October 1999, and a professor at the Columbia Business School and the Haas School of Business at the University of California at Berkeley from September 1981 to June 1998. Modest received his S.B. in Economics in 1976, and his Ph.D. in Economics in 1981, from Massachusetts Institute of Technology.

Moderator:

Kathleen Hanley, Visiting Associate Professor and Senior Academic Advisor, Center For Financial Policy Robert H. Smith School of Business, University of Maryland Kathleen Weiss Hanley is currently a Visiting Associate Professor of Finance and a Senior Academic Advisor to the Center for Financial Policy at the Robert H. Smith School of Business at the University of Maryland. From 2011 to 2013, she was the Deputy Chief Economist of the Securities and Exchange Commission and the Deputy Director of the Division of Economic and Risk Analysis where she oversaw the integration of economic analysis into Commission rulemaking and directed the Division’s research and risk assessment programs. Prior to that time, she was a Senior Economist at the Board of Governors of the Federal Reserve System in the Risk Analysis section and a Senior Financial Economist at the SEC. She was previously on the faculty of the University of Maryland as an Associate Professor (with tenure) and at the University of Michigan as an Assistant Professor. Her research focuses on capital formation and market pricing and has been published in leading finance journals such as The Journal of Finance, Journal of Financial Economics, The Review of Financial Studies, Journal of Financial Intermediation, and Financial Management. She is listed in “Authors with the Most Citations to Their Journal of Financial Economics Papers, 1974-2010.”

IDENTIFYING RISKS IN CENTRAL CLEARING………………………10:45-12:15

Peter Curley, Associate Director, Clearance and Settlement, Division of Trading and Marketing, SEC Peter J. Curley was named Associate Director for Clearance and Settlement in the SEC’s Division of Trading and Markets in 2011. As Associate Director, Mr. Curley oversees the Division’s clearance and settlement program, which has been expanded significantly over the past two years. Traditionally focused on securities clearing agencies and transfer agents, the Division’s Office of Clearance and Settlement is now additionally responsible for implementing regulations under the Dodd-Frank Act for clearing agencies that clear security-based swaps, and also responsible for overseeing security-based swap data repositories.

Mr. Curley had been an Attorney Fellow in the Division of Trading and Markets since August 2010. Prior to joining the Commission, Mr. Curley was a senior executive with Hong Kong Exchanges and Clearing Limited, where he served as Head of Corporate Strategy and Head of IPO Regulation. He also was a partner with the international law firm of Allen & Overy. Mr. Curley holds an M.B.A. from the Massachusetts Institute of Technology, a J.D. from the University of Virginia School of Law, and a B.A. from Colgate University.

Senthil Kumar, Chief Risk Officer, Institutional Clients Group, Citi Senthil relocated to Citigroup New York in 2004 after an eleven-year career at Samba Financial Group (a managed affiliate of Citigroup) in Saudi Arabia. At Samba, Senthil held various positions including Head of Market Risk and Head of Alternative Investments. Before assuming his current role in April 2014, Senthil was the Head of Risk Management for Financial Institutions and Head of Risk for Alternative Assets and Investments. Prior to that he was with Coopers & Lybrand in their Middle East practice.

Senthil graduated from the University of Madras, India with a Bachelor of Science in Mathematics. He is a Chartered Accountant and CFA charter holder.

Pat Parkinson, Managing Director, Promontory Financial Group Pat Parkinson is a Managing Director at Promontory Financial Group where he advises clients on regulatory and risk management issues. He joined the firm following a distinguished 31-year career with the Federal Reserve Board. Most recently he was director of the Division of Banking Supervision and Regulation and a member of the Basel Committee on Banking Supervision. During the first half of 2009, Pat was counselor to Treasury Secretary Timothy Geithner and played a leading role in development of proposals for reforming financial institutions and markets. Mr. Parkinson began his Federal Reserve career in the division of International Finance and later held successively more senior roles in the division of Research and Statistics and the Division of Banking Supervision and Regulation. For 15 years, he was the principal staff adviser to Chairmen Alan Greenspan and Ben Bernanke on issues considered by the president’s Working

Group on Financial Market. Mr. Parkinson holds a Ph.D. in Economics from the University of Wisconsin-Madison, an M.A. in Economics from Northwestern University, and B.A. from the University of Wisconsin-Madison.

Moderator:

Evan Picoult, Managing Director, Franchise Risk Architecture, Citi and Adjunct Professor, Columbia Business School Evan Picoult is a Managing Director within Citi’s Franchise Risk Architecture Department as well as an Adjunct Professor in the Decision, Risk and Operations Department of Columbia University’s Business School. Over the last few years he has focused on firm-wide projects regarding Basel-II, B-2.5, and Basel-III, stress testing and the enhancement of the measurement, implementation and use of Economic Capital.

Evan joined Citibank in 1980 in systems development, transferred to a trading desk in 1986 and has worked in internal risk management since 1988. He led the development of the methods used at Citi for measuring market risk and counterparty credit risk. He is a frequent lecturer on risk topics at professional conferences, regulatory conferences, and at universities. He has published a number of articles on risk topics.

He is on the Advisory Board of the IAQF (International Association of Quantitative Finance) and is co-head of the IAQF Credit Risk Committee. For the last 18 years he has very actively worked on Basel issues as a member of several trade associations’ working groups, and was the North American co-chair of ISDA’s Risk Management Committee from the mid-1990’s until 2010. He remains very active on ISDA and other trade association working groups. For several years, until 2008, he was also on the board of directors of the IACPM (International Association of Credit Portfolio Managers)..

Evan has multi-departmental ties to Columbia University. He has a Ph.D. in experimental particle physics from the Columbia’s Physics Department, did post-doctoral research on visual perception and taught in Columbia’s Psychology Department, and, after joining Citibank, he returned to Columbia part time to obtain an MBA in finance from the Executive MBA program of Columbia’s Business School. Since 2006 he has been an Adjunct Professor in the Decision, Risk and Operations department of Columbia’s Business School where he teaches the Risk Management course.

LUNCHEON KEYNOTE.………….…………………………………….12:30-2:00 p.m.

Richard Berner, Director, Office of Financial Research

Richard Berner has served as the first Director of the Office of Financial Research (OFR) since January 2013. Prior to his confirmation as OFR Director, Berner served as Counselor to the Secretary of the Treasury with responsibility for standing up the OFR. Before joining the Treasury in April 2011, he was Co-Head of Global Economics at Morgan Stanley. Berner previously served as Chief Economist at Mellon Bank and as a member of Mellon's Senior Management Committee. He served as a Senior Economist for Morgan Stanley, Salomon Brothers, and Morgan Guaranty Trust Company, and as Director of the Washington, D.C., office of Wharton Econometrics. For seven years, he worked on the research staff of the Federal Reserve Board in Washington. He has also been an adjunct professor of economics at Carnegie-Mellon University and George Washington University. Berner has been a member of the Economic Advisory Panel of the Federal Reserve Bank of New York, the Panel of Economic Advisers of the Congressional Budget Office, the Executive Committee and the Board of Directors of the National Bureau of Economic Research, and the Advisory Committee of the Bureau of Economic Analysis. Berner has won forecasting awards from Blue Chip Economic Indicators, The Wall Street Journal, Market News, and the National Association for Business Economics. He was also awarded the 2007 William Butler Award for Excellence in Business Economics. Berner received his bachelor’s degree from Harvard College and Ph.D. from the University of Pennsylvania.

POST-CRISIS CHANGES IN BANK BALANCE SHEETS………………….2:00-3:30 p.m Christopher Mazingo, Principal, McKinsey and Company Chris Mazingo is a Partner with McKinsey & Company, and he leads the North American Risk and Regulation Service line in McKinsey's Risk Practice. Chris regularly serves large US and non-US financial institution clients as well as financial industry bodies. His client service focuses on enhancing risk identification and management, estimating impacts of regulatory change, implementing programs to address regulatory feedback, including a focus on helping firms with capital planning (CCAR) and stress testing. Chris has led McKinsey’s thinking on the impacts of the financial crisis and he has presented his thinking on risk management -- including CCAR/capital planning, Dodd-Frank, international capital and liquidity standards, recovery and resolution planning -- at numerous conferences including The Federal Reserve Bank of Cleveland, GARP, Risk Minds, and PRMIA, and his work has been cited by the Global Risk Regulator and The American Banker.

Chris earned an MS in economics at the Massachusetts Institute of Technology where he specialized in econometrics and labor economics and a BA in economics magna cum laude from Swarthmore College. Patricia Kao, Deputy Director, Office of Financial Institutions Policy, U.S. Department of The Treasury Patricia Kao is Acting Director of the Office of Financial Institutions Policy (OFIP), the lead office on domestic financial services reform priorities at the U.S. Treasury Department. The office covers a broad range of policy matters, focusing on issues related to prudential regulation and regulatory structure, market conditions and competitiveness, and financial stability. She originally joined the Treasury Department in its Markets Room, which performs global markets monitoring and briefing functions for the Treasury and the White House. There she covered domestic fixed income, market structure issues, funding markets, and financials. Prior to joining Treasury, Ms. Kao was a fixed income trader at Lehman Brothers and Nomura Securities, focusing on GSE callables and other agency debt. She also has prior experience with exchange-traded funds (ETFs), electronic trading & risk management technology, energy markets, and municipal finance. Ms. Kao graduated from UC Berkeley and has an MBA from the MIT Sloan School of Management. Debbie Toennies, Managing Director, Head of Regulatory Strategy and Policy, JPMorgan and Co.

Debbie Toennies is a Managing Director in JPMorgan Chase’s Office of Regulatory Affairs where she has responsibility for analysis, coordination and advocacy of a broad range of regulatory issues including those related to capital (Basel III, leverage ratio, securitization) and liquidity (LCR and NSFR). In this role, she also serves as advisor for clients on the changing regulatory landscape relating to regulatory issues. In addition, Debbie is JPMorgan Chase’s liaison for all regulatory matters affecting JPMorgan Chase Commercial Bank.

Prior to her current role, Debbie served as Head of Conduit Management and Business Development within J.P. Morgan’s Securitized Products Group where she was an industry leader in advocacy initiatives with global regulators regarding securitization related issues in particular with regard to the impact of various rulemakings related to Dodd-Frank, Basel II and Basel III. In addition, Debbie was responsible for investor marketing, structuring J.P. Morgan’s conduits and ongoing relationship management for investors and rating agencies.

Debbie has held a number of leadership roles within the securitization industry and has also been very active in industry advocacy efforts as the leadership of various industry taskforces on a wide variety of issues. Debbie also spent many years originating, structuring and marketing a variety of asset backed and structured credit products transactions. Previously, Debbie worked in

corporate tax planning for First Chicago Bank and as an auditor at Arthur Andersen & Company prior to joining the Firm in 1990.

Debbie has a B.S. in Accounting from Miami University and an M.B.A. in Finance and Strategy from The University of Chicago.

Moderator:

Sri Iyer, Senior Vice President and Director of Research, The Clearing House

Dr. Sridhar Iyer is SVP and Director of Research at TCH specializing in financial risk including, operational risk, model risk, and financial resiliency. Previously Dr. Iyer was director of regulatory policy at Deutsche Bank where he specialized in regulatory capital issues with a focus on European and U.S. translations of the Basel guidelines and Dodd-Frank. He has held similar positions at HSBC and Morgan Stanley and served as a financial economist for the OCC. His academic research has appeared in leading journals such as Journal of Forecasting, Journal of Financial Research, and Applied Financial Economics.