Adam Lerrick

Visiting Scholar

American Enterprise Institute

1150 17th Street, NW

Washington, DC 20036

 Curriculum Vitae

Updated: June 27, 2005

Public Policy

Advisor to the Joint Economic Committee of the Congress of the United States, April 2001-

Advisor to the Majority Leader of the House of Representatives of the U.S. Congress, April 2001-January 2003

March 2005 -    American Enterprise Institute   Visiting Scholar

March 2001 -    Carnegie Mellon University-Tepper School of Business. Friends of Allan H. Meltzer Professor of Economics.  Director of the Gailliot Center for Public Policy.

2000-2001 -       Commission on the Role of the Multilateral Development Banks in Emerging Markets.  Chairmen:  Angel Gurria and Paul Volcker. 

1999-2000 -       International Financial Institution Advisory Commission of the U.S. Government (“Meltzer Commission”).  Appointed to provide a blueprint for reform of the  major multilateral financial agencies.

Senior Advisor to the Chairman.

Drafted major sections of the Commission Report;

Conducted an internal and external analysis of the workings of the World Bank and reassessed its role in the global economy;

Developed policy positions adopted by the Commission: a redirection of development bank functions; a shift from loans to grants as a more effective delivery system for aid; a review of the debt relief initiative; and a reliance upon the private sector to perform and finance development;

Assisted majority members of Congress on policy and legislation, among them: the offices of House Majority Leader Armey; of Senate Banking Committee Chairman Gramm; and of Joint Economic Committee Chairman Saxton;

Represented the Commission on conference panels, in the U.S. and Europe, debating the Report’s recommendations with officials of the U.S. Treasury and the multilateral institutions.

1998-1999 -       The Bretton Woods Committee.

A review of IMF financing options and a proposal for reform presented as the centerpiece of the Annual Meeting of the membership: “Private Sector Financing for the IMF: Now Part of an Optimal Funding Mix.”

Recent Publications and Papers

“The Debt of the Poorest Nations: A Gold Mine for Development Aid”, Joint Economic Committee, Congress of the United States, June 2005.

“A Leap of Faith for Sovereign Default:  From IMF Judgment Calls to Automatic Incentives”, Cato Journal, volume 25, number 1 (2005).

“The IMF’s immunity to loss is in jeopardy”, Financial Times, January 11, 2005.

“Opening a Back Door to Foreign Aid: The SDR Department at the IMF’, Joint Economic Committee, Congress of the United States, September 2004.

“Default without Disruption: Simulation of a Sovereign Debt Restructuring”, Journal of Restructuring Finance, volume 1, number 1 (2004).  (With Sanjay Srivastava).

“The World Bank as Foundation: Development without Debt” in The Road to Prosperity, edited by Marc A. Miles, Heritage Books, 2004. 

“Funding the IMF: How Much does it Really Cost?”, Joint Economic Committee, Congress of the United States, November 2003.

“A Simple Means to Defuse Sovereign Default”, Joint Economic Committee, Congress of the United States, June 2003.

“A bankruptcy court without credit”, Financial Times, April 11, 2003. 

“Blueprint for an international lender of last resort”, Journal of Monetary Economics, volume 50 (2003).  (With Allan H. Meltzer).

“Real Relief for the World’s Poor: The Millennium Challenge Corporation”, Joint Economic Committee, Congress of the United States, January 2003.

“A chance to bring real relief to the poor”, Financial Times, December 1, 2002.

“Effective Give and Take: A Business Plan for Development Aid”, Alex G. McKenna Lecture, September 2002.

“Bank Deposit Receipts:  A Transitional Money for Financial Crisis”, Latinwatch, BBVA, April 2002.

“Sovereign Default:  The Private Sector can Resolve Bankruptcy without a Formal Court”, Joint Economic Committee, Congress of the United States, April 2002.  (With Allan H. Meltzer).

“Audit the World Bank”, Financial Times, March 6, 2002.

“Are World Bank Claims of Success Credible?”, Joint Economic Committee, Congress of the United States, March 2002.

“A Solution for Argentina”, Financial Times, January 24, 2002. (With Allan H. Meltzer).

“Grants: A Better Way to Deliver Aid”, Joint Economic Committee, Congress of the United States, January 2002.  (With Allan H. Meltzer).

“Grants for the World’s Poor”, Economic Perspectives, U.S. Department of State, September 2001.

“The World Bank Is Wrong to Oppose Grants”, The Wall Street Journal, July 26, 2001.  (With Allan H. Meltzer).

“Beyond IMF Bailouts:  Default without Disruption”, Joint Economic Committee, Congress of the United States, May 2001.  (With Allan H. Meltzer).

“Beyond IMF bailouts: default without disruption”, Financial Times, May 10, 2001.  (With Allan H. Meltzer).

“A way out for Japan”, Financial Times, May 1, 2001.

“Sovereign Debt Crises:  It’s a repeat game”, Euromoney, March 2001.

“When Is a Haircut Not a Haircut?  When the IMF Is the Barber.” The Wall Street Journal, February 23, 2001.

“Effective Delivery of Development Aid”, Annual Meeting of the American Economic Association, January 2001.

“A Better Way To Lend A Hand”, The International Economy, November/December 2000.

“Pie-in-the-sky debt relief: A flawed proposal for Third World debt”, Washington Times, October 11, 2000.  (With Allan H. Meltzer).

“Slow progress in Prague”, Financial Times, October 10, 2000.  (With Allan H. Meltzer).

“HIPC:  The initiative is lacking”, Euromoney, IMF/World Bank Issue 2000.

“Audit The World Bank”, The International Economy, July/August 2000.

“Fool’s Gold and the IMF”, Euromoney, May 2000.

“What the World Bank Ought to Be Doing”, Washington Post, April 11, 2000.  (With Allan H. Meltzer).

“Save The Children”, The International Economy, March/April 2000.

“Whither the World Bank?”, International Financial Institution Advisory Commission, March 2000.

“IMF:  What the private sector does better”, International Financial Institution Advisory Commission, March 2000.

“The World Bank’s Wrong Portfolio”, The International Economy, January/February 2000.

“Has the World Bank lost its way?”, Euromoney, December 1999.

“Where’s that debut IMF bond issue?”, Euromoney, IMF/World Bank Issue 1999. 

“Private Sector Financing for the IMF:  Now Part of an Optimal Funding Mix”, The Bretton Woods Committee, April 1999.

Congressional Testimony

Hearing on Argentina’s Financial Crisis before the Subcommittee on International Trade and Finance, Committee on Banking, Housing, and Urban Affairs, U.S. Senate, 108th Congress, March 10, 2004.

Hearing on reform of the International Monetary Fund and World Bank before the Joint Economic Committee, Congress of the United States, 107th Congress, March 6, 2002.

Hearing on reform of the IMF and the World Bank before the Joint Economic Committee, Congress of the United States, 107th Congress, March 8, 2001.

Hearing on reform of the multilateral development banks before the Subcommittee on International Trade and Finance, Committee on Banking, Housing, and Urban Affairs, U.S. Senate, 106th Congress, June 8, 2000.

Hearing on reform of the International Monetary Fund before the Subcommittee on International Trade and Finance, Committee on Banking, Housing, and Urban Affairs, U.S. Senate, 106th Congress, April 27, 2000.

Hearing on reform of the International Monetary Fund and World Bank before the Joint Economic Committee, Congress of the United States, 106th Congress, April 12, 2000.

Hearing on international financial architecture before the Committee on Banking and Financial Services, U.S. House of Representatives, 106th Congress, March 23, 2000.

Investment Banking

In the capital markets, a focus on original structures with more than fifty major international financings for sovereign governments, central banks, multilateral institutions and financial intermediaries, many of which were pioneering concepts that laid the groundwork for the rapid expansion of the global markets.  (A list of selected transactions and strategic assignments follows.) 

2003 - 2005 -     Sovereign Debt Solutions Limited.  Chairman.  Originator and negotiation team of the Argentine Bond Restructuring Agency plc (ABRA).  ABRA united the interests of an estimated 30,000 European retail investors, in collaboration with HypoVereinsbank, the second largest bank in Germany, and DSW, the largest German investor rights protection organization, to create the largest foreign creditor in the $100 billion Argentina debt restructuring. 

1990 - 1999 -     Lerrick & Company Incorporated.  Advisory services to major financial institutions, including Banque Nationale de Paris, regarding problem assets. Restructuring of distressed and unique assets, as principal, in collaboration with J.P. Morgan and other leading financial intermediaries.

1989 - 1990 -     Voute Coats Stuart & O’Grady.  One of the six partners of this trading and capital markets oriented investment firm created by the former Vice-Chairman and a group of board members of Salomon Brothers.  Head of the Capital  Markets division.  The transactions structured included the first public securitization of leveraged buyout loans – a $625 million four-tranche issue coordinated among 20 major commercial banks.  Executed in collaboration with Banque Nationale de Paris, Chemical Bank, Credit National and Financial Security Assurance.  In March, 1990, the partnership was acquired by the First Boston Corporation.   

1987 - 1988 -     Credit Suisse First Boston.  A Director and head of Product Development with responsibility for the Packaging Department which provided the innovative segment of capital markets activity and coordinated the Firm’s response to inquiries on both the asset and liability fronts.  One of four executives reporting directly to the Vice-Chairman.

1982 - 1986 -     Salomon Brothers in International Capital Markets and Corporate Finance, first in New York and then in London to lead International Product Development.

Selected Transactions Originated and Structured

Over a seven year period, more than 50 important international financings were originated and structured.  Many of the pioneering concepts expanded the size, scope and pace of the global capital markets.  These included:

. . . in 1990, the first public securitization of leveraged buyout loans – a $625 million four tranche issue coordinated among 20 major commercial banks.  Executed in collaboration with Banque Nationale de Paris, Chemical Bank, Credit National and Financial Security Assurance

. . . in 1986, the first international financings for the West German government in the post-war period, via a series of five securitized issues, totaling DM2.4 billion.  Executed in collaboration with Commerzbank and Bayerische Vereinsbank

. . . in 1984, for the Kingdom of Sweden, a $1.5 billion floating rate funding with the first deferred note purchase facility, then the largest debt issue in the history of the U.S. market.  Executed in collaboration with Chase Manhattan Bank

. . . in 1987, for the Republic of Italy, the $1 billion note issue which was designated “Deal of the Year” by the International Finance Review.  Executed in collaboration with AIG Financial Products

. . . in 1985, for the Kingdom of Denmark, the first non-U.S. dollar floating rate funding in the United States in the form of an ECU150 million financing

. . . in 1985, for the Credit National (guaranteed by the Republic of France), the first currency option-related financing in the United States in the form of an ECU150 million issue

. . . in 1985, for the Banque Nationale de Paris, the first unrestricted access by foreign commercial banks to the U.S. capital markets through the issuance of deposit notes.

Selected Strategic Assignments

A continuing series of special assignments found answers to pressing short-term dilemmas and evaluated long-term strategies.  These ranged from entry into new areas to the elimination of illiquid securities positions and tax problems.  The projects included:

. . . Salomon Brothers’ entry into the commercial lending field and its ability to generate traditional underwriting business

. . . solutions to Salomon Brothers’ foreign tax problems via a restructuring of the activities of the Firm’s Swiss finance subsidiary

. . . Salomon Brothers’ entry into the new issue Deutschmark capital market

. . . Salomon Brothers’ entry into the foreign exchange arena with a plan for execution and a projection of profit potential

. . . the securitization of commercial bank leveraged buyout loans

. . . a study of the insurance industry and its possible synergy with the banking activities of the Credit Suisse, together with a plan for entry whether by purchase or cooperative linkage with major participants

. . . the ability of foreign commercial banks to access the U.S. capital market on an unrestricted basis through the issuance of deposit notes

. . . the creation of a foreign tax credit advantaged money market fund for Salomon Brothers’ corporate clients

. . . the restructuring of a $500 million RENFE floating rate note issue through a tax advantaged investment fund

. . . the development of a format to investigate and analyze sovereign creditworthiness for Salomon Brothers

Education

1981 -               Massachusetts Institute of Technology (MIT).  Awarded a PhD in the Department of Economics.  Institute Scholar. Concentration in International Finance and Monetary Economics. Dissertation prepared under Franco Modigliani:  “Where Standard Theory of Efficiency Falls Short of Reality:  Three International Capital Markets.”

1977 -               Princeton University.  Summa cum laude in Economics; Phi Beta Kappa.

1974 -               Ecole Alsacienne. Paris.  Experimental branch of French National Education system. Section C (mathematics).