Coherent Economics Adds Three Experts in Banking, Payments, and Consumer Finance

Coherent Economics is pleased to announce the addition of three leading experts in banking, financial networks, payment systems, and consumer credit to its roster of affiliates. The experts are Dr. Sujit “Bob” Chakravorti, Dr. James “Jamie” McAndrews, and Dr. Scott Schuh. Dr. Alan Frankel, Coherent’s President and leader of its antitrust and financial institutions & payments practice groups, stated, “Coherent is thrilled to have these three leading experts in banking, regulation, payments, and consumer finance join Coherent as affiliates. Together, these experts significantly expand Coherent’s depth of experience and expertise in these areas.”   

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Dr. Sujit “Bob” Chakravorti, Senior Affiliate

For over twenty years, Dr. Sujit “Bob” Chakravorti has been at the forefront of technological, economic, regulatory, and policy issues and debates surrounding payments and banking, most recently as an advisor to financial institutions, technology firms, policymakers, and FinTech startups.  He has served as Chief Economist at The Clearing House, the operator of the largest U.S. private sector payment system and, at the time, a trade association for the largest 24 commercial banks operating in the United States, and for many years before that as a senior research economist at the Federal Reserve Banks of Chicago and Dallas.  Prior to joining the Federal Reserve System, he worked at KPMG as an international economist advising foreign governments on financial market modernization.  Dr. Chakravorti received his PhD in economics from Brown University and his BA in economics and genetics from the University of California-Berkeley.

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James “Jamie” McAndrews, Senior Affiliate

Dr. James “Jamie” McAndrews served for 28 years in the Federal Reserve System as an economist specializing in payment systems, money and banking. From 2010-16 he served as Executive Vice President and head of the Research and Statistics Group at the Federal Reserve Bank of New York. Dr. McAndrews was a member of the steering committee for the Federal Reserve System's Comprehensive Liquidity Analysis and Review (CLAR) from its founding in 2011 to 2016, and served as Associate Economist to the Federal Open Market Committee in 2012. He represented the Bank on a number of international committees devoted to retail and large value payments, funding liquidity, and monetary policy implementation. Mr. McAndrews played a prominent role in the New York Fed’s financial stability efforts, including contributing to the design of several liquidity facilities during the financial crisis.  Mr. McAndrews holds both a bachelor’s and a doctorate degree in economics from the University of Iowa.

Dr. Scott Schuh, Senior Affiliate

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Dr. Scott Schuh served for 26 years as an economist in the Federal Reserve System at the Board of Governors and then the Federal Reserve Bank of Boston, where he served as the founding Director of the Consumer Payments Research Center.  Dr. Schuh led the creation and development of the Survey of Consumer Payment Choice and the Diary of Consumer Payment Choice. He also worked as a staff economist for President Reagan's Council of Economic Advisers.  Dr. Schuh’s research and teaching have focused on consumer payments, household finance, macroeconomics and monetary economics, with applications in econometrics, labor, and international economics. He currently teaches at West Virginia University, and has previously taught at Boston University, Boston College, and Johns Hopkins University. He received a B.A. in economics and journalism from California State University, Sacramento, and an M.A. and Ph.D. in economics from John Hopkins University.

For further information, contact Alan Frankel at alan.frankel@coherentecon.com.

Dr. Frankel to Speak on the Supreme Court’s American Express Decision

Coherent President Dr. Alan Frankel will be speaking in a webcast titled “The Legal and Economic Implications of the Supreme Court’s Amex Decision: What You Should Know”. The webcast will take place on Thursday, January 10th from 12-1pm ET (11am-12pm CT) and provide CLE credit. The presentation will include a review of the Amex decision, notable developments, risks and pitfalls, compliance tips, other recent cases, and an overview of what lies ahead after the Amex decision. Also participating in the webcast will be Dr. Robert Kneuper, with Info Tech.

To register at a free or discounted price, courtesy of Coherent Economics, please visit here.

Dr. Frankel has also shared an article related to the Amex decision. His full article can be found here.

Dr. Frankel has been an economic consultant and expert witness since 1985 and is one of the world's leading experts in the analysis of competition in payment systems and networks. He is an Adjunct Professor at the Loyola University Chicago School of Law where he teaches Law and Economics. He is also a member of the U.S. Advisory Board at the Institute for Consumer Antitrust Studies and a Senior Editor of the Antitrust Law Journal.

Dr. Alan Frankel, Coherent President

Dr. Alan Frankel, Coherent President

Dr. Frankel Publishes Article in ABA Antitrust Magazine

Coherent President Dr. Alan Frankel recently published an article titled “Another Side to the Story: American Express and the Quest for Efficient Payments Systems” in Antitrust Magazine.  The article offers a critique of the Supreme Court’s decision in Ohio v. American Express, along with thoughts about the potential consequences of the decision and how parties should react to it.

The full article can be viewed here.

In American Express, the Court accepted Amex’s “two-sided market” defense of its “non-discrimination provisions” (NDPs) which prohibit merchants that accept Amex cards from discouraging the use of Amex cards or encouraging the use of alternative, lower cost card brands. Amex argued that its relatively high merchant fees were necessary to fund benefits provided to cardholders, such as Amex’s “rewards” program. Dr. Frankel explains that Amex’s NDPs created and exploited an externality and resulted in inefficiency, rather than create an efficient outcome.

Defenders of American Express’s NDPs contend the economic framework of two-sided markets justifies the NDPs because the NDPs sustain greater benefits provided to merchants’ cardholder customers. But that is a fallacy. It is the NDPs themselves that ensure that American Express retains the economic features of a two-sided platform.
— Dr. Alan Frankel

Dr. Frankel has been an economic consultant and expert witness since 1985 and is one of the world's leading experts in the analysis of competition in payment systems and networks. He is an Adjunct Professor at the Loyola University Chicago School of Law where he teaches Law and Economics. He is also a member of the U.S. Advisory Board at the Institute for Consumer Antitrust Studies and a Senior Editor of the Antitrust Law Journal.

Dr. Alan Frankel, Coherent President

Dr. Alan Frankel, Coherent President

Coherent Economics Welcomes Dr. J.B. Heaton as a Senior Affiliate

Dr. J.B. Heaton, Senior Affiliate

Dr. J.B. Heaton, Senior Affiliate

Coherent Economics is pleased to announce that Dr. J.B. Heaton has joined our finance practice as a Senior Affiliate.

Dr. Heaton is an expert in financial economics specializing in securities, market efficiency, and behavioral finance. He is the leading financial economic expert on solvency tests, having written the authoritative article on the subject, “Solvency Tests.”  His work has been published in peer-reviewed scholarly journals such as the Journal of Finance, Review of Financial Studies, Review of Finance, and Financial Management. He has been cited by scholars and courts around the world, including by U.S. district courts, the United States Courts of Appeals, and the United States Bankruptcy Courts.He has taught at both the law and business schools of the University of Chicago and Duke University, and at Northwestern University’s law school.

Dr. Heaton received his JD from the University of Chicago Law School and his MBA and PhD in financial economics from the University of Chicago Booth School of Business in 1999. He joined Bartlit Beck Herman Palenchar & Scott LLP in 2004, where he ultimately became a litigation partner, and led corporate, securities, and transactional litigation.  He left the firm in 2017 to pursue broader academic and consulting roles in finance.

To learn more about Dr. Heaton, including a list of his publications, visit his profile on Coherent’s website.