The Gordon Gekko Effect: The Role of Culture in the Financial Industry

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The Gordon Gekko Effect: The Role of Culture in the Financial Industry

Andrew W. Lo
Economic Policy Review, Volume 22, Number 1 August

Author Disclosure Statement

Andrew Lo
This research was not supported by any specific grant or directed research contract. However, I receive some research funding from the MIT Laboratory for Financial Engineering (LFE) which I spend on research topics of my choosing. I am the director of the LFE.

The LFE is an MIT research center funded by individual donors and several public- and private-sector organizations; all funding sources from the last three years are: the Alfred P. Sloan Foundation, Citigroup, The Clearing House, the Consortium for Systemic Risk Analytics, Natixis Global Asset Management, the Macro Financial Modeling Group, the National Science Foundation, John Frishkopf, and Terence Lim. The LFE also receives in-kind support in the form of proprietary data from two large U.S. commercial banks, three large U.S. brokerage firms, one small European bank, and one healthcare analytics company. In addition, the LFE has accessed proprietary data through a research collaboration with the Office of the Comptroller of the Currency.

Over the past three years, I have received consulting and speaking fees exceeding $10,000 from the following organizations: American International Group, AlphaSimplex Group, Chicago Mercantile Exchange, Citigroup, and Scotiabank.

I have personal investments exceeding $10,000 in the following individual companies: AlphaSimplex Group funds, BridgeBio Capital, Caspian Private Equity, ImmuneXcite, KEW Group, MPM Capital, Novalere, Royalty Pharma, and VisionScope. I am an advisor to BridgeBio Capital.

The following are paid and unpaid positions held by me that are relevant to the financial industry:

AlphaSimplex Group, LLC, Chairman and Chief Investment Strategist
CFTC Market Risk Advisory Committee, Member
CME Group Competitive Markets Advisory Council, Member
Consortium for Systemic Risk Analytics, Academic Advisory Board, Member
FINRA, Economic Advisory Committee, Member
30 March 2016 Disclosure Statement Page 2 of 2
Macrofinancial Modeling (MFM) Group, Co-Director
National Bureau of Economic Research, Research Associate
NY Fed, Financial Advisory Roundtable, Member
OFR Financial Research Advisory Committee, Member
SEC Equity Market Structure Advisory Committee, Member

* This disclosure statement conforms to the American Economic Association Disclosure Policy as of March 29, 2016 which can be accessed at http://www.aeaweb.org/aea_journals/AEA_Disclosure_Policy.pdf.

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