Areas of expertise
Banking regulation and accounting
Gordon Kerr is an investment banker with broad experience of banking collapses and the need for systemic reform, having started his career working on sovereign debt syndications and the Latin American debt crisis. In the 1990s he specialized in housing finance, designing Scandinavian mortgage securitization structures and rental securitizations for the UK social housing sector. In the UK he helped protect housing associations from the rapacious demands of banks by designing a rent based financing structure that lowered the borrowing cost of the entire social housing sector by about 10% in 1995. Shortly after the LTCM hedge fund collapse and bailout of 1998, he designed regulatory arbitrage structures that used credit default swaps combined with US monoline wraps to create synthetic regulatory capital, a structure that was deployed Europewide to releverage Europe’s largest banks. In 2002 he met with the UK bank regulator, the FSA, to attempt to explain that wrong accounting for derivative products would cause the banking system to collapse. Gordon Kerr set up Cobden Partners shortly after the banking system collapsed. He is the author of “The Law of Opposites, Illusory Profits in the Financial Sector”. He is a senior fellow of the Paris-based research foundation Institute for Research in Fiscal Issues and a frequent financial commentator for influential business and financial news TV channels.