Mark C. Brickell
Encyclopedia
Mark C. Brickell is an influential leader in the derivatives industry. He served as the president of the International Swaps and Derivatives Association
from 1988 to 1992.
In 1989 and 1990 he was sent by JP Morgan to New Zealand
to deal with the failure of Development Finance Corporation (DFC), which was a government-owned development bank. He was tasked with unwinding their swaps portfolio, which resulted in the largest corporate finance advisory fee ever earned by JP Morgan at that time.
In 1993 he was a principal author of the influential Group of Thirty study "Derivatives: Practices and Principles", which suggested that internal risk controls and best practices at financial institutions, including mark to market, and not government regulation, would facilitate safe and efficient trading of derivatives by the financial industry.
In 1996 he served on the Board of Directors of the CME
Depository Trust, an Illinois-based bank which was created for the proposes of moving collateral between banks. This was a centralized collateral depository facility established by the CME.
In 1998 he was sent by JP Morgan to Korea to try and recover up to $700 million in defaulted swaps contracts from state-owned banks, and is reported to have recovered more than half of that money.
He worked at JP Morgan Securities for nearly 25 years, and was present when credit default swap
s were first conceived at a bankers' retreat in Florida in 1994.
As the chief lobbyist for the derivatives industry, in 1994 Brickell led an effort to defeat legislation proposed by Congressman Jim Leach
(R-IA) that would have regulated the OTC derivatives industry. Leach proposed the legislation after his staff produced a 900-page study on the market. Other members of the House of Representatives, including Henry B. Gonzalez
and Edward Markey (D-MA), supported regulation of the derivatives industry.
In his book Infectious Greed, author Frank Partnoy
, who was interviewed by "60 Minutes" in October 2008, recounts the battle over the 1994 legislation, which Brickell and the derivatives industry won.
In 1995, after Baring Brothers, one of England's largest and oldest merchant banks collapsed from the unbridled derivatives trading of a single trader, Brickell was interviewed by Charlie Rose on PBS Television. Brickell explained that Baring didn't have adequate internal controls in place.
In 1998 Brickell wrote a letter to Congress opposing derivatives regulations.
In 2003, President Bush nominated Mark Brickell to become the chief regulator at OHFEO (over Fannie Mae and Freddie Mac) when Armando Falcon resigned after releasing his prescient 2003 study on systemic GSE risk. Congress held hearings on his nomination (http://bulk.resource.org/gpo.gov/hearings/108s/95603.pdf), but it was subsequently withdrawn when opponents pointed out that Brickell had led the charge against regulation in the derivatives industry and questioned whether he could be effective as a regulator.
Brickell NO LONGER serves as the CEO of Blackbird, a Charlotte
, North Carolina-based company that enables real-time electronic trading of OTC derivatives of all types. He holds an M.B.A. from Harvard Business School
and a B.A. from the University of Chicago
. (Company website)
International Swaps and Derivatives Association
The International Swaps and Derivatives Association is a trade organization of participants in the market for over-the-counter derivatives....
from 1988 to 1992.
In 1989 and 1990 he was sent by JP Morgan to New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
to deal with the failure of Development Finance Corporation (DFC), which was a government-owned development bank. He was tasked with unwinding their swaps portfolio, which resulted in the largest corporate finance advisory fee ever earned by JP Morgan at that time.
In 1993 he was a principal author of the influential Group of Thirty study "Derivatives: Practices and Principles", which suggested that internal risk controls and best practices at financial institutions, including mark to market, and not government regulation, would facilitate safe and efficient trading of derivatives by the financial industry.
In 1996 he served on the Board of Directors of the CME
CME
- General :* Chief Mechanical Engineer, persons in charge of building or maintaining locomotives* Cisco Unified Communications Manager Express , formerly CallManager Express , a telephony system...
Depository Trust, an Illinois-based bank which was created for the proposes of moving collateral between banks. This was a centralized collateral depository facility established by the CME.
In 1998 he was sent by JP Morgan to Korea to try and recover up to $700 million in defaulted swaps contracts from state-owned banks, and is reported to have recovered more than half of that money.
He worked at JP Morgan Securities for nearly 25 years, and was present when credit default swap
Credit default swap
A credit default swap is similar to a traditional insurance policy, in as much as it obliges the seller of the CDS to compensate the buyer in the event of loan default...
s were first conceived at a bankers' retreat in Florida in 1994.
"I've known people who worked on the Manhattan Project," says Mark Brickell, who at the time was a 40-year-old managing director at JPMorgan. "And for those of us on that trip, there was the same kind of feeling of being present at the creation of something incredibly important." (Newsweek Magazine, Oct 2008)
As the chief lobbyist for the derivatives industry, in 1994 Brickell led an effort to defeat legislation proposed by Congressman Jim Leach
Jim Leach
James Albert Smith "Jim" Leach is a former member of the U.S. House of Representatives from Iowa. In August 2009, he became Chairman of the National Endowment for the Humanities ....
(R-IA) that would have regulated the OTC derivatives industry. Leach proposed the legislation after his staff produced a 900-page study on the market. Other members of the House of Representatives, including Henry B. Gonzalez
Henry B. Gonzalez
Henry Barbosa González was a Democratic politician from the state of Texas. He represented Texas's 20th congressional district from 1961 to 1999.-Background:...
and Edward Markey (D-MA), supported regulation of the derivatives industry.
In his book Infectious Greed, author Frank Partnoy
Frank Partnoy
Frank Partnoy is the George E. Barrett Professor of Law and Finance at the University of San Diego School of Law.-Bibliography:* F.I.A.S.C.O.: Blood in the Water on Wall Street* Infectious Greed: How Deceit and Risk Corrupted the Financial Markets...
, who was interviewed by "60 Minutes" in October 2008, recounts the battle over the 1994 legislation, which Brickell and the derivatives industry won.
In 1995, after Baring Brothers, one of England's largest and oldest merchant banks collapsed from the unbridled derivatives trading of a single trader, Brickell was interviewed by Charlie Rose on PBS Television. Brickell explained that Baring didn't have adequate internal controls in place.
In 1998 Brickell wrote a letter to Congress opposing derivatives regulations.
In 2003, President Bush nominated Mark Brickell to become the chief regulator at OHFEO (over Fannie Mae and Freddie Mac) when Armando Falcon resigned after releasing his prescient 2003 study on systemic GSE risk. Congress held hearings on his nomination (http://bulk.resource.org/gpo.gov/hearings/108s/95603.pdf), but it was subsequently withdrawn when opponents pointed out that Brickell had led the charge against regulation in the derivatives industry and questioned whether he could be effective as a regulator.
Brickell NO LONGER serves as the CEO of Blackbird, a Charlotte
CHARLOTTE
- CHARLOTTE :CHARLOTTE is an American blues-based hard rock band that formed in Los Angeles, California in 1986. Currently, they are signed to indie label, Eonian Records, under which they released their debut cd, Medusa Groove, in 2010. Notable Charlotte songs include 'Siren', 'Little Devils',...
, North Carolina-based company that enables real-time electronic trading of OTC derivatives of all types. He holds an M.B.A. from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
and a B.A. from the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
. (Company website)
Sources
- Wikipedia: OTC derivatives
- Newsweek, "The Monster That Ate Wall Street: How 'credit default swaps'—an insurance against bad loans—turned from a smart bet into a killer." http://www.newsweek.com/id/161199
- http://marketpipeline.blogspot.com/2008/06/derivative-thinking.html
- 60 Minutes program dated October 26, 2008 on credit default swaps