Policy Design, Analysis, and Evaluation Commons^™

The Lehman Brothers Bankruptcy H: The Global Contagion, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

When Lehman Brothers filed for bankruptcy on September 15, 2008, it was the largest such filing in U.S. history and a huge shock to the world’s financial markets, which were already stressed from the deflated housing bubble and questions about subprime mortgages. Lehman was the fourth-largest U.S. investment bank with assets of $639 billion and its operations spread across the globe. Lehman’s clients and counterparties began to disclose millions of dollars of potential losses as they accounted for their exposures. But the impact of Lehman’s demise was felt well beyond its counterparties. Concern regarding its real estate assets, its large …

The Lehman Brothers Bankruptcy G: The Special Case Of Derivatives, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

When it filed for bankruptcy protection in September 2008, Lehman Brothers was an active participant in the derivatives market and was party to 906,000 derivative transactions of all types under 6,120 ISDA Master Agreements with an estimated notional value of $35 trillion. The majority of Lehman’s derivatives were bilateral agreements not traded on an exchange but in the over-the-counter (OTC) market. Because derivatives enjoyed an exemption from the automatic stay provisions of the U.S. Bankruptcy Code, parties to Lehman’s derivatives could seek resolution and self-protection without the guidance and restraint of the bankruptcy court. The rush of counterparties to novate …

The Lehman Brothers Bankruptcy F: Introduction To The Isda Master Agreement, Christian M. Mcnamara, Andrew Metrick

Journal of Financial Crises

When Lehman Brothers Holdings, Inc. (LBHI) sought Chapter 11 protection, the more than 6,000 counterparties with which its subsidiaries had entered into over 900,000 over-the-counter (OTC) derivatives transactions faced the question of how best to respond to protect their interests. The existence of standardized documentation developed by the International Swaps and Derivatives Association (ISDA) for entering into such transactions meant that the counterparties likely thought that they were dealing with a well-defined and robust set of options in answering this question. Yet, in practice, the resolution of Lehman’s OTC derivatives portfolio ended up being less orderly than the existence of …

The Lehman Brothers Bankruptcy E: The Effects On Lehman’S U.S. Broker-Dealer, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Lehman’s U.S. broker-dealer, Lehman Brothers Inc. (LBI), was excluded from the parent company’s bankruptcy filing on September 15, 2008, because it was thought that the solvent subsidiary might be able to wind down its affairs in a normal fashion. However, the force of the parent’s demise proved too strong, and within days, LBI and dozens of Lehman subsidiaries around the world were also in liquidation. As a regulated broker-dealer, LBI was required to comply with the Securities and Exchange Commission financial-responsibility rules for broker-dealers, including maintaining customer assets separately. However, the corporate complexity and enterprise integration that characterized the Lehman …

The Lehman Brothers Bankruptcy D: The Role Of Ernst & Young, Rosalind Z. Wiggins, Rosalind L. Bennett, Andrew Metrick

Journal of Financial Crises

For many years prior to its demise, Lehman Brothers employed Ernst & Young (EY) as the firm’s independent auditors to review its financial statements and express an opinion as to whether they fairly represented the company’s financial position. EY was supposed to try to detect fraud, determine whether a matter should be publicly disclosed, and communicate certain issues to Lehman’s Board audit committee. After Lehman filed for bankruptcy, it was discovered that the firm had employed questionable accounting with regard to an unorthodox financing transaction, Repo 105, which it used to make its results appear better than they were. EY …

The Lehman Brothers Bankruptcy C: Managing The Balance Sheet Through The Use Of Repo 105, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

The Lehman Brothers court-appointed bankruptcy examiner produced a 2,200-page report detailing possible claims that the estate might pursue. The most surprising revelation of the report was that during its last year Lehman had relied heavily on an unusual financing transaction—Repo 105. The examiner concluded that Lehman’s aggressive use of Repo 105 transactions enabled it to remove up to $50 billion of assets from its balance sheet at quarter-end and to manipulate its leverage ratio so that it could report more favorable results. This case considers in-depth Lehman’s questionable use of Repo 105 transactions and its impact.

The Lehman Brothers Bankruptcy B: Risk Limits And Stress Tests, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

Investment banks are in the business of taking calculated risks. Risk management infrastructure facilitates the safe pursuit of profits and the balancing of associated risks. By 2006, Lehman Brothers was thought to have a very respectable risk management system, and even its regulator, the Securities and Exchange Commission, viewed its risk framework as being fully compliant with regulatory requirements. In its public disclosures, Lehman characterized its risk controls as “meaningful constraints on its risk taking” and evidence of its continued financial stability. Beginning in late 2006, however, Lehman began dismantling its carefully crafted risk management framework as it pursued a …

The Lehman Brothers Bankruptcy A: Overview, Rosalind Z. Wiggins, Thomas Piontek, Andrew Metrick

Journal of Financial Crises

On September 15, 2008, Lehman Brothers Holdings, Inc., the fourth-largest U.S. investment bank, sought Chapter 11 protection, initiating the largest bankruptcy proceeding in U.S. history. The demise of the 164-year old firm was a seminal event in the global financial crisis. Under the direction of its long-time Chief Executive Officer Richard Fuld, Lehman had been very successful pursuing a high-leverage, high-risk business model that required it to daily raise billions of dollars to fund its operations. Beginning in 2006, Lehman began to invest aggressively in real-estate-related assets and soon had significant exposures to housing and subprime mortgages, just as these …

Decentralized Space Traffic Management, Ruth E. Stilwell 6105540

Space Traffic Management Conference

This paper will examine the political, policy, and regulatory barriers to the provision of STM as a global safety service. It will examine the concepts under development for airspace from 20km to 100km to accommodate new entrants in aviation and space and discuss how those concepts may provide a path forward for decentralized space traffic management.

Analyzing The Interplay Between Public Pension Finances And Government Finances: Lessons From Linking An Economic Model To A Pension Fund Model, Yimeng Yin, Donald Boyd

Public Administration and Policy Faculty Scholarship

Public pension funds invest in stock, bonds, and other assets in an effort to keep the costs to governments of funding pensions low. Researchers have examined the investment-related risks to public pension funds, to the governments that contribute to them, and to stakeholders in pension funds and governments, using stochastic simulation models of pension fund finances.

These models generally use simple investment return assumptions, such as that returns are drawn from a normal distribution, are independent from year to year, and are not correlated with the governmental tax revenue needed to pay pension contributions. Because investment returns and tax revenue …

Slogans Appropriate To The Legacy Of Martin Luther King Jr., Theodore Walker

Perkins Faculty Research and Special Events

For printing signs, banners, posters, tee shirts, and bumper stickers (and for preaching sermons) that are appropriate to the legacy of Rev. Dr. Martin Luther King Jr., please consider the following slogans: ABOLISH WAR, ABOLISH POVERTY, AMEND THE CONSTITUTION, SUPPORT AN ECONOMIC BILL OF RIGHTS, JOBS FOR ALL, GUARANTEED INCOME FOR ALL, SUPPORT UNIVERSAL BASIC INCOME, and GOOD NEWS TO THE POOR - Luke 4:14-19.

Measurement Plan And Analytic Strategies For Evaluating The Mayor’S Action Plan For Neighborhood Safety. Map Evaluation Update Number 2., Jeffrey A. Butts, John Roman, Angela Silletti, Anthony Vega, Wogod Alawlaqi

Publications and Research

This is the second of six updates presenting interim findings from the evaluation of the NYC Mayor’s Action Plan for Neighborhood Safety (MAP). As part of an evaluation of the New York City Mayor’s Action Plan for Neighborhood Safety (MAP), the John Jay College Research and Evaluation Center was asked to create the measurement framework and analytic strategies to evaluate the MAP initiative. Using multiple data sources and onsite observations and interviews, the team aims to understand the relationship between the MAP efforts and the expected outcomes of those efforts.

Poverty To Prison Pipeline, Tishawna Jones

Petersheim Academic Exposition

No abstract provided.

Criminalizing Poverty: How Current Drug Policies Harm Poor Communities, Adrianna Satorski

Petersheim Academic Exposition

No abstract provided.

Immigrant Affidavit Of Support: Realistic Or Not?, Victoria Melendez

Petersheim Academic Exposition

No abstract provided.

Implementing A New Performance Management System In The Egyptian Civil Service / تطبيق نظام جديد لإدارة الأداء في قطاع الخدمة المدنية في مصر, Reham Mohamed Yousef, Samar Roushdy, Yara Abo El Waffa, Yasmine Mohamed Badr

Papers, Posters, and Presentations

The policy paper discusses the recently ratified Civil Service Law (CSL) No. 81/2016 with a special focus on the potential implementation pathways regarding the performance management system ofgovernment employees. In an attempt to combat the inefficiencies in state bureaucracy to achieve more economic growth, the CSL comes as a legislative instrument within an ambitious national agenda for administrative reform in Egypt seekinga better performance of the public sector institutions.

Market-Base Solutions To Manage The Guarani Aquifer: Pigouvian Fee And Cap-And-Trade, Julia Hayes Vieira

Master's Theses and Capstones

The objective of this case-study is to analyze the effects and the perception of different groups in possibly implementing market-based approaches of Pigouvian tax and Cap-and-Trade to manage the Guarani Aquifer, Brazil. The Pigouvian Tax is a corrective taxation that assigns a price for the negative impacts water consumption creates to aquifers, as a way to influence a more sustainable level of water consumption. Cap-and-Trade sets a maximum quantity of water allowed to be used from aquifers, and allow economic agents to trade quantities of water they have the right to use, as a way to adapt to the cap. …

On Cluster Robust Models, José Bayoán Santiago Calderón

CGU Theses & Dissertations

Cluster robust models are a kind of statistical models that attempt to estimate parameters considering potential heterogeneity in treatment effects. Absent heterogeneity in treatment effects, the partial and average treatment effect are the same. When heterogeneity in treatment effects occurs, the average treatment effect is a function of the various partial treatment effects and the composition of the population of interest. The first chapter explores the performance of common estimators as a function of the presence of heterogeneity in treatment effects and other characteristics that may influence their performance for estimating average treatment effects. The second chapter examines various approaches …

Stakeholder Input To The Development Of The Santa Clara County Lgbtq-Focused Shelter: A Process And Policy Analysis, Anthony Montalvo

Master's Projects

Due to elevated homelessness and growing hate crimes, an LGBTQ-focused shelter was developed and implemented by Office of Supportive Housing (OSH), along with the OLGBTQ (Office of Lesbian, Gay, Bisexual, Transgender, Queer). The following research investigated whether the process to design the LGBTQ-focused shelter program in Santa Clara county took the necessary steps to ensure that the program represents the community it intends to serve. Using process evaluation to identify the problem and proposed solutions, and policy analysis to examine the alternative solutions, the research answered the question: Did the approved design of the LGBTQ-focused shelter represent the stakeholder planning …

Put Your Money Where Your Mouth Is: Reforming Organized Dentistry To Address Persistent Oral Health Disparities In The U.S., Aparna Chintapalli

Pomona Senior Theses

The importance of oral health has been largely neglected from the conventional standards of healthcare in terms of public understanding & prioritization, the industrial infrastructure, and the scope of prevention & early-intervention services. Its adjunctive locus to the field of medicine has lead to the bifurcation of the oral cavity from the rest of the human body. As a result of this divide, there have been multiple factors that have allowed socially stratified oral health outcomes to manifest. This thesis examines the determinants of oral health disparities through a multidisciplinary lens (i.e. biology, public policy, infrastructure), and offers evidence of …