SAFE Policy Lecture: Craig M. Lewis
Title: Money Market Fund Reform
Speaker: Craig M. Lewis, Madison S. Wigginton Professor of Finance, Owen Graduate School of Management, Vanderbilt University
The objective of the talk is to discuss various regulatory reform options that are designed to make money market funds more resilient to liquidity runs. Prof. Lewis will discuss the economic effects of 1) requiring a money market fund to be supported by a capital buffer; 2) requiring a fund to be priced at its market value rather than the current convention of amortized cost pricing, and 3) the efficacy of liquidity fees and redemption gates.
Craig M. Lewis is the former Chief Economist and Director of the Division of Economic and Risk Analysis at the U.S. Securities and Exchange Commission. He returned to his position at Vanderbilt University where he is the Madison S. Wigginton Professor of Finance at the Owen Graduate School of Management in May.
He has conducted research on volatility in stock and futures markets, margin adequacy, corporate earnings management, corporate financial policy, executive compensation, convertible debt, and herd behavior by equity research analysts. While at the SEC, he spearheaded the Agency’s efforts to improve the economic analysis supporting its rule makings and began a data analytic program designed to identify outlier behavior among registrants. One example is the Accounting Quality Model or “Robocop” which is designed to identify firms that make unusual accounting choices. His research has been published in the Journal of Financial Economics, Review of Financial Studies, Journal of Econometrics, Journal of Financial and Quantitative Analysis, among other places.