Shadow Financial Regulatory Committee
About This Event

The Shadow Financial Regulatory Committee (SFRC) is a group of publicly recognized independent experts on the financial services industry--including banking, insurance, and securities--who meet regularly to study and critique regulatory policies affecting this sector of the economy. At two closed sessions before the luncheon, committee members discussed, among other things, Listen to Audio

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proposed reforms to the financial regulatory structure, including taxes on large banks; independence and transparency of the Federal Reserve; splitting up of large banks; Glass-Steagall and proprietary trading issues; Securities and Exchange Commission policy initiatives; accounting issues; and other actions and proposals in the financial services sector.

At the luncheon press briefing that follows these sessions, SFRC members issued one or more statements and answered questions related to the topics discussed.


Speaker biographies

George G. Kaufman is a cochair of the Shadow Financial Regulatory Committee and the John F. Smith, Jr. Professor of Finance and Economics at Loyola University Chicago, where he has worked since 1981. Previously, he was a visiting scholar and the acting director of research at the Office of the Comptroller of the Currency and was the deputy to the assistant secretary for economic policy at the Treasury Department. He has also worked at the Federal Reserve Bank of Chicago in numerous capacities, including senior economist and assistant vice president. During his career, Mr. Kaufman has taught at the University of California, Berkeley; Stanford University; the University of Oregon; and the University of Southern California. He is the executive director of the Financial Economists Roundtable, the coeditor of the Journal of Financial Stability, the founding editor of the Journal of Financial Services Research, and the editor of Research in Financial Services, and he is on the editorial board of numerous other publications.

Richard J. Herring is a cochair of the Shadow Financial Regulatory Committee as well as the Jacob Safra Professor of International Banking and the codirector of the Wharton Financial Institutions Center at the Wharton School of the University of Pennsylvania, where he has worked since 1972. His research areas include international banking, international finance, and money and banking. He is the coeditor of the Brookings-Wharton Papers on Financial Services series, published by the Brookings Institution Press, and is on the editorial board of numerous journals. Mr. Herring has been a trustee of Scudder New York Funds since 1990.

Ray Ball is the Sidney Davidson Professor of Accounting at the University of Chicago Graduate School of Business, where he studies corporate disclosure, earnings and stock prices, international accounting, the Australian economy and share market, and market efficiency and investment strategies. He is coauthor of “An Empirical Evaluation of Accounting Income Numbers” (Journal of Accounting Research, 1968), which won the American Accounting Association’s inaugural award for seminal contributions in account literature, and the author of “Anomalies in Relationships between Securities’ Yields and Yield Surrogates” (Journal of Financial Economics, 1978), which was the first academic reference to systematic anomalies in the theory of efficient markets. Mr. Ball is the editor of the Journal of Accounting Research, associate editor of the Journal of Contemporary Accounting and Economics, and a member of the editorial board of the European Accounting Review. Previously, Mr. Ball was the Wesray Professor in Business Administration at the William E. Simon Graduate School of Business Administration at the University of Rochester, and he has also taught at the London Business School, the Australian Graduate School of Management, and the University of Queensland.

Marshall E. Blume is the Howard Butcher III Professor of Financial Management and the director of the Rodney L. White Center for Financial Research at the Wharton School of the University of Pennsylvania, where he has worked since 1967. He researches financial markets, investments, investment behavior, and fixed income securities. Mr. Blume is on the editorial boards of the Journal of Portfolio Management and the Journal of Fixed Income. He is on the board of the Measey Foundation and is an independent director of various CPA real estate investment trusts.

Charles W. Calomiris is a visiting scholar at AEI and codirector of AEI’s program on financial market deregulation. He is the Henry Kaufman Professor of Financial Institutions at Columbia Business School and a research associate at the National Bureau of Economic Research. At AEI, Mr. Calomiris studies banking regulation, corporate finance, and monetary economics. His most recent books are China’s Financial Transition at a Crossroads (Columbia University Press, 2007) and Sustaining India’s Growth Miracle, coedited with Jagdish Bhagwati (Columbia University Press, 2008).

Kenneth W. Dam is the Max Pam Professor Emeritus of American and Foreign Law and a senior lecturer at the University of Chicago Law School. He served as deputy secretary in the Treasury Department from 2001 to 2003 and in the Department of State from 1982 to 1985. Previously, he was executive director of the Council on Economic Policy and assistant director for national security and international policy at the Office of Management and Budget. Mr. Dam’s work in the private sector includes serving as IBM’s vice president for law and external relations and as president and CEO of the United Way of America. He is a member of the board of the Brookings Institution and serves as a nonresident senior fellow of that organization. Mr. Dam is also a board member of the Committee for Economic Development and was formerly chairman of the German-American Academic Council. He has been a board member of numerous nonprofit institutions, and he served for thirteen years on the board of Alcoa.

Robert A. Eisenbeis is the chief monetary economist at Cumberland Advisors, where he advises the company’s asset managers on U.S. economic and financial market developments and their implications for investment and trading strategies. Mr. Eisenbeis was formerly executive vice president and director of research at the Federal Reserve Bank of Atlanta, where he advised the bank’s president on monetary policy for Federal Open Market Committee deliberations and was in charge of basic research and policy analysis. Previously, he was the Wachovia Professor of Banking at the Kenan-Flagler School of Business at the University of North Carolina at Chapel Hill. He has also held senior positions at the Federal Reserve Board and Federal Deposit Insurance Corporation. Mr. Eisenbeis is a member of the Financial Economists Roundtable and a fellow of the National Association of Business Economics. 

Edward J. Kane is the James F. Cleary Professor of Finance at Boston College. Previously, he held the Everett D. Reese Chair of Banking and Monetary Economics at Ohio State University. He also consults for the World Bank, is a senior fellow in the Federal Deposit Insurance Corporation’s Center for Financial Research, and has been a longtime research associate of the National Bureau of Economic Research. Mr. Kane has served as a consultant for numerous agencies, including the Federal Home Loan Bank Board, the International Monetary Fund, the Federal Reserve, the Congressional Budget Office, the Joint Economic Committee, and three foreign central banks. He served for twelve years as a trustee and member of the finance committee of Teachers Insurance and is a past president and fellow of the American Finance Association and a former Guggenheim fellow. Mr. Kane also served as president of the International Atlantic Economic Society and the North American Economics and Finance Association. Besides authoring three books, he has published widely in professional journals and currently serves on seven editorial boards. 

Christian Leuz is the Joseph Sondheimer Professor at the University of Chicago Graduate School of Business, where he studies corporate disclosures, accounting transparency and disclosure regulation in capital markets, corporate governance, and financing, as well as issues in international accounting. His work has been published in the Accounting Review, the Journal of Accounting Research, the Journal of Accounting and Economics, and the Journal of Financial Economics. Mr. Leuz is an executive board member of the Initiative on Global Markets, a research associate at the European Corporate Governance Institute, and a fellow at the Wharton Financial Institutions Center. He is the associate editor of the Journal of Accounting and Economics and serves on the editorial boards of several other journals, and he is a coeditor of The Economics and Politics of Accounting: International Perspectives on Research Trends, Policy and Practice, with Dieter Pfaff and Anthony Hopwood (Oxford University Press, 2004). Mr. Leuz has received several grants and honors, including a Journal of Financial Economics All Star Paper Award and the Geewax Terker Prize. Previously, Mr. Leuz served as the Harold Stott Term Assistant Professor of Accounting at the Wharton School of the University of Pennsylvania; held positions at WHU Otto Beisheim Hochschule, Universität Tübingen, and Johann Wolfgang Goethe Universität; and was a visiting professor at the Simon School of Business at the University of Rochester.

Robert E. Litan is the vice president of research and policy at the Kauffman Foundation, where he researches entrepreneurship and youth education, and a senior fellow in economic studies at the Brookings Institution. Mr. Litan was a cofounder and codirector of the AEI-Brookings Joint Center on Regulatory Studies and currently serves as an adviser to the AEI Center for Regulatory Studies, its successor. He is a longtime member of the Shadow Financial Regulatory Committee and has written extensively on a wide variety of regulatory and financial topics. Mr. Litan was the principal drafter of the Financial Services Roundtable’s report on insurance and megacatastrophes. His most recent books are Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, with William J. Baumol and Carl J. Schramm (Yale University Press, 2007), and Competitive Equity: A Better Way to Organize Mutual Funds, with Peter J. Wallison (AEI Press, 2007).

Kenneth E. Scott is the Ralph M. Parsons Professor of Law and Business Emeritus at Stanford Law School. He is a leading scholar in the fields of corporate finance reform and corporate governance and is well-versed in federal deposit insurance issues and federal banking regulation. As a senior research fellow at the Hoover Institution, he concentrates on legislative and policy developments related to comparative corporate governance, bank regulation, and deposit insurance reform. Mr. Scott has extensive consulting experience, including turns with the World Bank; the Federal Deposit Insurance Corporation and the Resolution Trust Corporation; and, most recently, the National Association of Securities Dealers. He is also a member of the Financial Economists Roundtable and the State Bar of California’s Financial Institutions Committee. Before joining the Stanford Law School faculty in 1968, Mr. Scott was general counsel to the Federal Home Loan Bank Board and chief deputy savings and loan commissioner of California.

Chester S. Spatt is the Kenneth B. and Pamela R. Dunn Professor of Finance and the director of the Center for Financial Markets at the Tepper School of Business at Carnegie Mellon University. He has been at Carnegie Mellon since 1979. From 2004 to 2007, Mr. Spatt served as the chief economist and the director of the Office of Economic Analysis for the U.S. Securities and Exchange Commission. He has researched and written extensively on market structure, taxation and asset allocations, pricing and valuation, and the impact of information in the marketplace. Additionally, he is a member of the Financial Economists Roundtable and a fellow at the TIAA-CREF Institute. Mr. Spatt has been on the editorial board of numerous academic journals, including the Journal of Financial Markets, Real Estate Economics, and the Journal of Financial and Quantitative Analysis. He was a founder and the second executive editor of the Review of Financial Studies, and he served as a member of the economic advisory board for NASDAQ from 2000 to 2002.

Peter J. Wallison holds the Arthur F. Burns Chair in Financial Policy Studies at AEI, where he codirects the Institute’s program on financial market deregulation. He previously practiced banking, corporate, and financial law at Gibson, Dunn & Crutcher in Washington, D.C. and New York. From June 1981 to January 1985, Mr. Wallison was general counsel of the Treasury Department, where he had a significant role in the development of the Reagan administration’s proposals for deregulation in the financial services industry. He also served as general counsel to the Depository Institutions Deregulation Committee and participated in the Treasury Department’s efforts to deal with the debt held by less-developed countries. During 1986 and 1987, Mr. Wallison was White House counsel to President Ronald Reagan. Between 1972 and 1976, Mr. Wallison served first as special assistant to New York governor Nelson A. Rockefeller and, subsequently, as counsel to Mr. Rockefeller when he was vice president of the United States.

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