Industry custom and practice and standard of care are frequently key factors when establishing liability in disputes in the financial services industry. Brattle principals offer decades of direct industry experience in financial services. Brattle experts include former senior staff of large financial institutions, as well as former regulators and senior government officials, allowing us to provide our clients with detailed, real-world knowledge of how various financial institutions actually operate. We also regularly identify and work with industry experts with specific professional profiles particularly relevant and sought after by our clients.
Brattle experts, as well as industry experts with whom we work, have addressed contractual disputes, regulatory compliance, risk management processes, asset valuation, industry custom and practice, and standard of care. Our experience spans a range of engagements involving commercial lending, mortgage securitization, over-the-counter trading practices in foreign exchange, equity block trading and fixed income markets, custody of securities, hedge fund administration, securities fraud, tax disputes, credit crisis litigation, broker/client investment suitability and foreseeability, bankruptcy and ability to pay, and competition. We have provided expert advice and testimony before state and federal courts, arbitration panels, and in foreign courts.
Brattle identified and supported an industry expert in Anti-Money Laundering compliance on behalf of the U.S. Department of Justice in a criminal action that resulted in a plea agreement.
In a civil regulatory action, Brattle identified and supported an industry expert in Anti-Money Laundering compliance to examine the role and responsibility of the chief compliance officer of a money services business.
A Brattle team assisted a €6 billion European bank in redesigning the credit and counterparty guidelines and risk approval authorities in order to incorporate best practices in structuring credit extensions and measuring and monitoring counterparty risk in custodial relationships to ensure compliance with BASEL requirements.
In AFTRA Retirement Fund v. JPMorgan Chase Bank, N.A., a Brattle expert testified in an ERISA matter dealing with a fiduciary client’s investment in structured investment vehicle debt, related bank information barriers, material non-public information rules, and potential conflicts of interest.
In United States of America v. BNP Paribas SA., a Brattle principal provided testimony in a False Claims Act dispute involving a claim under a U.S. Government commercial loan guaranty program. Brattle analyzed the actions of the bank with regard to its supervisory, due diligence, and monitoring responsibilities for commercial loans, under both regulation and custom and practice. This testimony aided in a favorable settlement for the U.S. Government.
In Regions Bank, et.al., Plaintiffs v. Nexbank Securities, Inc., Defendants and Comerica Bank, Plaintiff in Intervention v. Regions Bank et.al., Brattle identified and supported and investment banking industry expert who testified on the customary and contractual responsibilities of an investment banker raising mezzanine financing. In addition, a Brattle principal provided testimony regarding agent bank responsibilities in loan syndications, as well as bank supervisory responsibilities for commercial loan officers and their supervisors.
In various actions adverse to Lloyds Bank, PLC regarding dual currency property loans in the U.S., a Brattle principal provided testimony addressing commercial lending custom and practice in administering the loan agreement, documenting the collateral structure and detailing pricing.
A Brattle principal provided affidavit testimony and expert advice in Dellway et.al. v. National Asset Management Agency, Ireland and the Attorney General of Ireland, before the Supreme Court and the High Court, Commercial, Ireland. The testimony addresed commercial lending custom and practice, the nature of long-standing banking relationships, and the role of reputation in lending decisions.
Brattle principals consulted, as experts, for a foreign tax authority investigating a tax avoidance scheme that relied on a complex circular flow of funding. Brattle analyzed the vehicles used in the circular flow, which involved simultaneous debt issuance and collective trust purchases. Advice provided by Brattle on the customary corporate practice in structuring and documenting corporate subordinated debt issuances, as well as the due diligence and monitoring of purchased interests in a collective trust, enabled the tax authority to achieve a favorable tax settlement.
In various claims adverse to Morgan Keegan & Company, Inc., a Brattle principal testified for respondents’ counsel in FINRA arbitration disputes involving mutual fund and closed-end fund investments. Topics covered included structured finance, market and credit risks, fund disclosures, the financial market crisis, valuation, and damages.
In an SEC investigation, Brattle identified and supported an industry expert in mutual fund pricing, valuation, and disclosure practices.
Counsels representing a group of large municipal bond issuers engaged Brattle to estimate damages due to a collusive agreement among brokers and dealers of municipal bond derivative contracts. Brattle’s expert analysis gave estimates for the price effects of the cartel on a diverse set of muni derivative contacts bought by the plaintiffs. Working from these estimates, damages attributable to a number of specific cartel participants were estimated as well.
Brattle was engaged by the U.S. Department of Justice to provide expert analyses and testimony concerning the economic foundation of a tax shelter that used foreign exchange contracts as a central part of a complex transaction. Brattle’s analysis showed that the claimed foreign exchange trades were outside the actual exchange trading activity of the tax payer’s claimed counterparty and that the trades were not exposed to the market place.
Brattle identified and supported a mortgage credit expert in a putative class action to address the competitive nature of the loan origination process for securitized residential mortgage loans.
In a recent case for a monoline insurance company, a Brattle principal constructed and tracked alternative diversified portfolios to estimate damages arising from portfolios alleged to be inappropriately concentrated in subprime mortgage products.
On behalf of Barclays Capital in a disputed margin call brought by the bankruptcy trustee of Thornburg Mortgage, Brattle identified and supported an industry expert in Master Repurchase Agreement custom and practice regarding rights and remedies under the Agreement. A Brattle principal also analyzed the bank’s trading, collateral marking, and collateral sales processes.
A Brattle principal testified in New Orleans City v. Paine Webber et al. in connection with a municipal bond issuance and associated interest rate swap, remarketing agreement, bond insurance, and surety bond. Testimony topics included municipal bond valuation, market custom and practice, foreseeability of market events, credit ratings, and municipal bond insurance.
On behalf of a leading broker-dealer in a FINRA arbitration alleging investment suitability violations, Brattle identified and supported an industry expert regarding the duties and responsibilities of a clearing broker and an economist providing damages testimony.
As part of an investment services arbitration, a Brattle principal provided a confidential report and testimony addressing the customary and contractual duties and responsibilities of an administrator in a payment and performance dispute with a hedge fund.
In Weavering Macro Fixed Income Fund Limited (In Liquidation) v. PNC Global Investment Servicing (Europe) Limited, a Brattle principal testified regarding customary and contractual duties and responsibilities of a fund administrator in service to a Cayman domiciled hedge fund.
In Boldwater Credit Opportunities Fund I L.P. et.al. v. Derivatives Portfolio Management, L.L.C. et.al., a Brattle principal provided expert advice and deposition testimony relating to the role and responsibility of hedge fund administrators, the contractual obligations typically contained in administration agreements and in the agreement in question, the administrator’s performance under the agreement, investor perceptions of operations risk, and the incentives contained in earn-out purchase agreements.
In Primeo Fund (In Official Liquidation) Plaintiff and 1) Bank of Bermuda (Cayman) Limited, 2) HSBC Securities Services (Luxembourg) SA Defendants in the Grand Court of the Cayman Islands Financial Services Division, a Brattle principal provided trial testimony regarding the duties and responsibilities of a custodian in service to a Cayman hedge fund arising out of the Madoff Ponzi scheme.
In a dispute relating to high net worth custody clients serviced by a registered investment advisor, Brattle identified and supported an industry expert addressing the securities custodian’s duties and responsibilities.
In litigation related to the Madoff Ponzi scheme, a Brattle principal provided expert testimony in Anwar v. Fairfield Greenwich Limited addressing the customary and contractual duties and responsibilities of securities custodians.
Before the High Commercial Court in Dublin, Brattle identified and supported an industry expert regarding a global securities custodian’s duties and responsibilities in the selection and monitoring of a subcustodian in a Madoff-related dispute.
Industry Custom and Practice– Overview – Anti-Money Laundering – Bank Regulation – Commercial Lending – Financial Services Risk Management Processes – Investment Management Valuation, Due Diligence, and Disclosure Practices – Market Trading Activities – Mortgage Banking / Securitization – Suitability – The Duties and Responsibilities of Broker Dealers – The Duties and Responsibilities of Hedge Fund Administrators – The Duties and Responsibilities of Securities Custodians
Complex business and legal matters require intellectually honest and analytically rigorous solutions that are thoughtfully developed and clearly communicated. We apply economic and finance principles with uncompromising quality to achieve clarity in the face of complexity. Independent analysis, responsive execution, and compelling presentation. That’s Brattle. That’s the Power of Economics.