This document recommends buying claims in the Credit Default Swap Antitrust Class Action lawsuit. A class action was brought against major banks for anti-competitive acts related to CDS pricing. A $1.86 billion settlement was reached, to be distributed pro rata to qualifying claims. Estimated total damages were $8-12 billion, meaning the settlement represents a 15-23% recovery. Buying claims now trading at $12 could yield returns of 10.8-66.2% depending on total submitted claims and payment timing. Risks include uncertainty around total claims and payment timing within 2016.
As the Boy Scouts of America goes through a contentious bankruptcy, dozens of lawyers are working on the case. Many are charging more than $1,000 an hour.
The document discusses collaborative practice and mediation as alternative dispute resolution methods. It explains that collaborative practice involves participants agreeing not to go to court and to share all relevant information. Experts work for both participants rather than taking opposing positions. Mediation and collaborative practice aim to resolve disputes through non-adversarial problem solving rather than litigation. The document provides statistics showing high settlement rates for disputes resolved through mediation, particularly for business and employment cases.
Litigation Funding: Extending Access to Justice (Oliver Gayner and Noah Wortm...Noah Wortman
Litigation funding, over the years, has been established as an integral part of mainstream civil justice systems with a view to facilitating access to justice. Not only do litigation funders finance the cost of proceedings in exchange for a portion of the recovery, but they frequently function as coordinators amongst investor-claimants, provide access to legal resources, and (in some cases) underwrite the potentially significant risk of paying “adverse costs” (i.e., paying for the respondent’s legal bills in the event the claim is unsuccessful).
The Use of Cy Press Funds in Class LitigationRonaldJLevine
This document discusses the concept of cy pres in class action litigation. Cy pres allows leftover settlement funds from class actions to be distributed to charitable organizations rather than returned to defendants. It aims to further the goals of deterrence and compensation. While critics argue cy pres is punitive rather than compensatory, proponents believe it benefits society by directing funds to organizations serving purposes related to the class. Courts have broad discretion in selecting cy pres recipients.
1) Contacting and compensating former employees can present legal and ethical issues for attorneys unless they are careful. In movies, former employees conveniently provide key evidence, but in reality attorneys must work to locate and convince them to cooperate.
2) Class action lawsuits are intended to enable individuals with small claims to collectively pursue litigation but often result in large payouts to attorneys while providing little compensation to class members. Studies show that in many cases where small cash amounts are awarded to large consumer classes, only a small percentage of class members actually receive settlement funds.
3) Reforms have been proposed to address issues like attorneys bringing class action suits primarily for their own financial gain while providing little benefit to class members. Suggest
Libor Lawsuit - In Re _ LIBOR Antitrust Litigation vs. Bank of America, JPMor...Umesh Heendeniya
This document discusses several lawsuits brought against banks for their alleged manipulation of the London Interbank Offered Rate (LIBOR) between August 2007 and May 2010. LIBOR is a benchmark interest rate compiled by the British Bankers' Association based on rates submitted by major banks and used globally in contracts, derivatives, and loans worth trillions of dollars. The lawsuits allege that the banks conspired to artificially suppress the LIBOR rate to portray themselves as financially healthier and pay lower interest rates on LIBOR-linked financial products. The document provides background on LIBOR and outlines the plaintiffs' allegations while noting factual disputes remain. It then evaluates the defendants' motions to dismiss aspects of the plaintiffs' antitrust, RICO, and
Debt settlement companies promise to reduce consumer debt by negotiating with creditors for a fee. However, this comes with significant risks, as consumers must default on debts and see if the company can successfully negotiate reductions. The document discusses the debt settlement process, fees charged, and risks involved, such as damaged credit, collection actions, and lawsuits. It notes studies finding low program completion rates and that most consumers do not get a majority of debts settled. Despite recent reforms banning upfront fees, clients still face many risks from defaulting on debts in debt settlement programs.
As the Boy Scouts of America goes through a contentious bankruptcy, dozens of lawyers are working on the case. Many are charging more than $1,000 an hour.
The document discusses collaborative practice and mediation as alternative dispute resolution methods. It explains that collaborative practice involves participants agreeing not to go to court and to share all relevant information. Experts work for both participants rather than taking opposing positions. Mediation and collaborative practice aim to resolve disputes through non-adversarial problem solving rather than litigation. The document provides statistics showing high settlement rates for disputes resolved through mediation, particularly for business and employment cases.
Litigation Funding: Extending Access to Justice (Oliver Gayner and Noah Wortm...Noah Wortman
Litigation funding, over the years, has been established as an integral part of mainstream civil justice systems with a view to facilitating access to justice. Not only do litigation funders finance the cost of proceedings in exchange for a portion of the recovery, but they frequently function as coordinators amongst investor-claimants, provide access to legal resources, and (in some cases) underwrite the potentially significant risk of paying “adverse costs” (i.e., paying for the respondent’s legal bills in the event the claim is unsuccessful).
The Use of Cy Press Funds in Class LitigationRonaldJLevine
This document discusses the concept of cy pres in class action litigation. Cy pres allows leftover settlement funds from class actions to be distributed to charitable organizations rather than returned to defendants. It aims to further the goals of deterrence and compensation. While critics argue cy pres is punitive rather than compensatory, proponents believe it benefits society by directing funds to organizations serving purposes related to the class. Courts have broad discretion in selecting cy pres recipients.
1) Contacting and compensating former employees can present legal and ethical issues for attorneys unless they are careful. In movies, former employees conveniently provide key evidence, but in reality attorneys must work to locate and convince them to cooperate.
2) Class action lawsuits are intended to enable individuals with small claims to collectively pursue litigation but often result in large payouts to attorneys while providing little compensation to class members. Studies show that in many cases where small cash amounts are awarded to large consumer classes, only a small percentage of class members actually receive settlement funds.
3) Reforms have been proposed to address issues like attorneys bringing class action suits primarily for their own financial gain while providing little benefit to class members. Suggest
Libor Lawsuit - In Re _ LIBOR Antitrust Litigation vs. Bank of America, JPMor...Umesh Heendeniya
This document discusses several lawsuits brought against banks for their alleged manipulation of the London Interbank Offered Rate (LIBOR) between August 2007 and May 2010. LIBOR is a benchmark interest rate compiled by the British Bankers' Association based on rates submitted by major banks and used globally in contracts, derivatives, and loans worth trillions of dollars. The lawsuits allege that the banks conspired to artificially suppress the LIBOR rate to portray themselves as financially healthier and pay lower interest rates on LIBOR-linked financial products. The document provides background on LIBOR and outlines the plaintiffs' allegations while noting factual disputes remain. It then evaluates the defendants' motions to dismiss aspects of the plaintiffs' antitrust, RICO, and
Debt settlement companies promise to reduce consumer debt by negotiating with creditors for a fee. However, this comes with significant risks, as consumers must default on debts and see if the company can successfully negotiate reductions. The document discusses the debt settlement process, fees charged, and risks involved, such as damaged credit, collection actions, and lawsuits. It notes studies finding low program completion rates and that most consumers do not get a majority of debts settled. Despite recent reforms banning upfront fees, clients still face many risks from defaulting on debts in debt settlement programs.
Audit Response to Money Laundering by Financial Institutions: An Economic Per...inventionjournals
This article focuses on the interplay between a corporation (its executives and managers) and auditors in the presence of an opportunity to launder funds. Auditor responsibilities to detect illegal acts are significantly different than their responsibilities to detect fraud. In addition the changing audit and business environment conspire to complicate the role of the auditor. The paper begins with a discussion of crime by organizations. This is followed by a review of auditor responsibilities to detect irregularities and illegal acts. Economic theory is then used to analyze auditor payoffs and incentives related to client money laundering activities. The paper concludes with recommendations for both practice and future research.
Daniel Maloney is a principal with over 15 years of experience in economic and financial modeling, data analytics, damages calculations, and financial analysis to support clients in complex litigation and disputes. He has worked on hundreds of cases involving issues such as asbestos, environmental, and product liabilities. Mr. Maloney specializes in insurance valuation, policy analysis, and assisting clients in recovering insurance proceeds, having helped recover over $1 billion for clients. He has expertise in consolidating and analyzing large claim datasets, developing allocation models, and implementing technology solutions to manage complex data.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Defined Contribution Plans and Fee Lawsuits: Stuck in the Mud or the Road to ...Callan
The document summarizes recent 401(k) fee lawsuits against plan sponsors and discusses best practices for sponsors to avoid costly litigation. It notes that nearly 40 lawsuits have been filed since 2006 regarding issues such as excessive fees, revenue sharing violations, and imprudent investment options. Settlements have typically required sponsors to reduce fees, improve investment options, and enhance disclosures. The document examines some high-profile lawsuits and concludes by recommending sponsors closely monitor fees, benchmark expenses, and document their oversight to stay out of legal trouble.
Stephen Ware - Consumer and Collection Arbitration Law 2022 .pptxStephen Ware
Consumer and Collection Arbitration by KU Law Professor Stephen Ware, 2022. Recent developments in statutory and case law. Historical and political context.
Moderninizing bank supervision and regulationcatelong
This is the testimony of Chris Whalen to the Senate Banking Committee on March 24, 2009 about bank and financial institution regulation and supervision.
Expert Opinion on Fundraising by the Disabled Veteransrebeccagacel
The document provides an expert opinion on fundraising by the Disabled Veterans National Foundation. The expert analyzed the DVNF's contract with Brick Mill Studios and the fundraising campaigns resulting from the contract. The expert determined that the contract terms were appropriate and beneficial to DVNF. Additionally, the campaigns have been very successful in acquiring new donors and retaining existing donors, generating a net positive return despite initial losses from acquiring new donors. The campaigns have also advanced DVNF's mission in non-financial ways. In summary, the expert found no issues with the contract or campaign performance based on an analysis of the first two years.
- Goldman Sachs Bank USA (GS Bank) requested approval to acquire assets and assume liabilities from GE Capital Bank. Specifically, GS Bank would assume $17 billion of GE Capital Bank's $18.2 billion in deposits. It would also acquire technology assets related to GE Capital Bank's online deposit platform.
- The Board approved the proposal after determining that competitive effects would not be significantly adverse, the financial and managerial resources of the banks were satisfactory, and the transaction was otherwise legally authorized. The Department of Justice also found no competitive issues with the transaction.
Regulatory enforcement actions increased slightly in Q3 2017 to 52 actions, comparable to the prior year quarter. The top regulators were the CFPB, OCC, FDIC, FRB, and DOJ, though state regulators initiated more actions than the CFPB. Most actions were related to unfair lending practices and mortgage lending. Specifically, there was increased focus on student lending violations and violations of laws protecting military borrowers. Total penalties ordered for improper mortgage lending topped $26.7 billion over the past five quarters.
The document discusses the challenges that businesses face in complying with changing financial sanctions imposed by the US and EU. It notes that sanctions regimes have expanded from a focus on Cuba and Iran to include countries like Russia, North Korea, and Sudan. Companies must navigate complex and rapidly changing regulations with uncertainty. PwC offers services to help clients understand compliance obligations and manage risks through tools like risk assessments, investigations, and scenario planning exercises. Failure to comply can result in significant fines and reputational damage.
The document summarizes recent developments in criminal antitrust enforcement. It discusses fines and sentencing for price fixing in various industries such as electronic books, health care, freight forwarding, and LCD panels. Regulators have increased litigation efforts and obtained convictions and sizable fines in recent cases, showing a stronger commitment to deterring anticompetitive conduct through criminal prosecution.
The Dodd-Frank Act aims to create a more stable financial system through increased regulations and consumer protections. It establishes new regulatory agencies, restrictions on large banks, and hundreds of new rules. The act aims to end taxpayer bailouts of financial institutions, increase transparency, and protect investors. One key change was removing Regulation Q which prohibited paying interest on business checking accounts, potentially impacting banks' revenues and customers' cash management strategies.
Cross-Border/International Legal Malpractice. Due to the increased volume of the movement of goods, investment and services, the risk of legal malpractice is increasing. The level of such malpractice is probably greater than most acknowledge. I have numerous articles written about this topic and been involved in legal matters involving this issue.
Who is the most influential arbitrator in the world Rishab Gupta
This article analyzes methods for measuring influence and quality among arbitrators in investment treaty arbitration. It uses citation analysis and number of appointments to identify the most influential arbitrators. The article describes a database of 664 arbitral decisions and 5,516 citations. It finds that the 10 most cited decisions received between 101-103 citations each. The 10 most cited arbitrators received between 330-547 citations each after removing self-citations. The 10 arbitrators with the most appointments received between 15-29 appointments each. Francisco Orrego Vicuña, James Crawford, and Gabrielle Kaufmann-Kohler were among the most influential based on these two metrics.
This document discusses strategies for successful mediation of insured claims. It notes that mediating insured claims requires a different approach than other types of disputes due to different participant dynamics. Key strategies discussed include:
1) Ensuring adequate information exchange between parties so that valuations are justified and informed. Withholding information risks evidentiary issues and bad faith claims.
2) Conducting objective case valuation and risk analysis using techniques like decision trees to assess likelihood of various outcomes and compare to similar past cases. Misvaluation of claims often leads to rejected settlement offers parties later regret.
3) Encouraging frank discussion of case strengths and weaknesses rather than relying solely on positional bargaining, as insured claims mediation often devolves
The document discusses the lack of regulation of remittance fees charged by money transfer organizations and banks. It details research by ACORN International that found remittance fees to be much higher than reported by the World Bank, often over 20% of the transaction amount. The research found little response from banks to requests to reduce fees and an absence of oversight or regulation of remittance fees by government agencies in sending or receiving countries. ACORN International is now working with legislators to draft laws establishing regulatory oversight of remittance fees to help lower costs for immigrant families.
Student Project There is no extension of the due date for t.docxjohniemcm5zt
Student Project
There is no extension of the due date for the project. Late projects will not be accepted. A grade of zero will be given if the project is not turned in on time. Hard copy of the paper must be turned in to this instructor on or before the due date . No electronic submission
Paper Requirements
Use the DSM V to identify a coded disorder and use the symptoms of that disorder to create a client and case vignette. The client you create should meet all the criteria for the diagnosis you select. See following page
Student project paper organization and points distribution:
· 2 pts APA cover (page 1)
· 3 pts APA format entire paper (running heads and citations etc.)
· 20pts Accurately completed Multiaxial sheet (page2)
· 50 pts Create a client and present your client in a narrative using clinical language and terminology to describe symptoms of a DSM disorder. DSM V guidelines and criteria. This section must be at least 4 pages long and no longer than 5 pages (pages 3, 4, 5, 6) you will be penalized 5 points for each ½ page short of the 4 page narrative.
Make this person real…
· What do you observe when you meet and speak with this client
· What does this client say and how do they say it
· Describe symptoms of your client that represent indicators for an Axis I diagnosis
· Include medical issues. You must include at least one medical from Axis III
· Describe background and environmental contributors to the diagnosis at least three Axis IV factors Also provide demographics, age, race, sex etc…
· Discussion of the GAF explains criteria as it relates to your client (a paragraph 5pts.)
· You must give your client at least one assessment/ inventory/test relevant to confirming your diagnosis (depression inventory, substance abuse, OCD, bipolar or anxiety inventory etc...)
· Discuss and explain the results of the inventory ( a paragraph 5pts)
· Justify your diagnosis using DSM V criteria, terms and rule outs.( a paragraph 5pts)
· Use information secured from your two peer reviewed journal articles on the subject of the diagnosis to support your diagnosis,(a paragraph for each article 10pts)
· 10pts APA Resource/ reference page (page 7or 8) you must use and document the following:
· DSM V
· You must use, document and cite in text, at least two peer review journal articles on the topic of your diagnosis.
· The articles appear in reputable psychological research journals.
· Articles must have a publication date of 2001 to present.
· Document where you secured your assessment
· 10pts Appendix Place a copy of the inventory/assessment you used with your client in the appendix
Multiaxial Assessment
Multiaxial Evaluation Report Form
AXIS I: Clinical Disorders
Other Conditions That May Be a Focus of Clinical Attention
Diagnostic code DSM-IV name
___________ ___________________________________________
AXIS II: Personality Disorders Mental Re.
Audit Response to Money Laundering by Financial Institutions: An Economic Per...inventionjournals
This article focuses on the interplay between a corporation (its executives and managers) and auditors in the presence of an opportunity to launder funds. Auditor responsibilities to detect illegal acts are significantly different than their responsibilities to detect fraud. In addition the changing audit and business environment conspire to complicate the role of the auditor. The paper begins with a discussion of crime by organizations. This is followed by a review of auditor responsibilities to detect irregularities and illegal acts. Economic theory is then used to analyze auditor payoffs and incentives related to client money laundering activities. The paper concludes with recommendations for both practice and future research.
Daniel Maloney is a principal with over 15 years of experience in economic and financial modeling, data analytics, damages calculations, and financial analysis to support clients in complex litigation and disputes. He has worked on hundreds of cases involving issues such as asbestos, environmental, and product liabilities. Mr. Maloney specializes in insurance valuation, policy analysis, and assisting clients in recovering insurance proceeds, having helped recover over $1 billion for clients. He has expertise in consolidating and analyzing large claim datasets, developing allocation models, and implementing technology solutions to manage complex data.
All product and company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
Defined Contribution Plans and Fee Lawsuits: Stuck in the Mud or the Road to ...Callan
The document summarizes recent 401(k) fee lawsuits against plan sponsors and discusses best practices for sponsors to avoid costly litigation. It notes that nearly 40 lawsuits have been filed since 2006 regarding issues such as excessive fees, revenue sharing violations, and imprudent investment options. Settlements have typically required sponsors to reduce fees, improve investment options, and enhance disclosures. The document examines some high-profile lawsuits and concludes by recommending sponsors closely monitor fees, benchmark expenses, and document their oversight to stay out of legal trouble.
Stephen Ware - Consumer and Collection Arbitration Law 2022 .pptxStephen Ware
Consumer and Collection Arbitration by KU Law Professor Stephen Ware, 2022. Recent developments in statutory and case law. Historical and political context.
Moderninizing bank supervision and regulationcatelong
This is the testimony of Chris Whalen to the Senate Banking Committee on March 24, 2009 about bank and financial institution regulation and supervision.
Expert Opinion on Fundraising by the Disabled Veteransrebeccagacel
The document provides an expert opinion on fundraising by the Disabled Veterans National Foundation. The expert analyzed the DVNF's contract with Brick Mill Studios and the fundraising campaigns resulting from the contract. The expert determined that the contract terms were appropriate and beneficial to DVNF. Additionally, the campaigns have been very successful in acquiring new donors and retaining existing donors, generating a net positive return despite initial losses from acquiring new donors. The campaigns have also advanced DVNF's mission in non-financial ways. In summary, the expert found no issues with the contract or campaign performance based on an analysis of the first two years.
- Goldman Sachs Bank USA (GS Bank) requested approval to acquire assets and assume liabilities from GE Capital Bank. Specifically, GS Bank would assume $17 billion of GE Capital Bank's $18.2 billion in deposits. It would also acquire technology assets related to GE Capital Bank's online deposit platform.
- The Board approved the proposal after determining that competitive effects would not be significantly adverse, the financial and managerial resources of the banks were satisfactory, and the transaction was otherwise legally authorized. The Department of Justice also found no competitive issues with the transaction.
Regulatory enforcement actions increased slightly in Q3 2017 to 52 actions, comparable to the prior year quarter. The top regulators were the CFPB, OCC, FDIC, FRB, and DOJ, though state regulators initiated more actions than the CFPB. Most actions were related to unfair lending practices and mortgage lending. Specifically, there was increased focus on student lending violations and violations of laws protecting military borrowers. Total penalties ordered for improper mortgage lending topped $26.7 billion over the past five quarters.
The document discusses the challenges that businesses face in complying with changing financial sanctions imposed by the US and EU. It notes that sanctions regimes have expanded from a focus on Cuba and Iran to include countries like Russia, North Korea, and Sudan. Companies must navigate complex and rapidly changing regulations with uncertainty. PwC offers services to help clients understand compliance obligations and manage risks through tools like risk assessments, investigations, and scenario planning exercises. Failure to comply can result in significant fines and reputational damage.
The document summarizes recent developments in criminal antitrust enforcement. It discusses fines and sentencing for price fixing in various industries such as electronic books, health care, freight forwarding, and LCD panels. Regulators have increased litigation efforts and obtained convictions and sizable fines in recent cases, showing a stronger commitment to deterring anticompetitive conduct through criminal prosecution.
The Dodd-Frank Act aims to create a more stable financial system through increased regulations and consumer protections. It establishes new regulatory agencies, restrictions on large banks, and hundreds of new rules. The act aims to end taxpayer bailouts of financial institutions, increase transparency, and protect investors. One key change was removing Regulation Q which prohibited paying interest on business checking accounts, potentially impacting banks' revenues and customers' cash management strategies.
Cross-Border/International Legal Malpractice. Due to the increased volume of the movement of goods, investment and services, the risk of legal malpractice is increasing. The level of such malpractice is probably greater than most acknowledge. I have numerous articles written about this topic and been involved in legal matters involving this issue.
Who is the most influential arbitrator in the world Rishab Gupta
This article analyzes methods for measuring influence and quality among arbitrators in investment treaty arbitration. It uses citation analysis and number of appointments to identify the most influential arbitrators. The article describes a database of 664 arbitral decisions and 5,516 citations. It finds that the 10 most cited decisions received between 101-103 citations each. The 10 most cited arbitrators received between 330-547 citations each after removing self-citations. The 10 arbitrators with the most appointments received between 15-29 appointments each. Francisco Orrego Vicuña, James Crawford, and Gabrielle Kaufmann-Kohler were among the most influential based on these two metrics.
This document discusses strategies for successful mediation of insured claims. It notes that mediating insured claims requires a different approach than other types of disputes due to different participant dynamics. Key strategies discussed include:
1) Ensuring adequate information exchange between parties so that valuations are justified and informed. Withholding information risks evidentiary issues and bad faith claims.
2) Conducting objective case valuation and risk analysis using techniques like decision trees to assess likelihood of various outcomes and compare to similar past cases. Misvaluation of claims often leads to rejected settlement offers parties later regret.
3) Encouraging frank discussion of case strengths and weaknesses rather than relying solely on positional bargaining, as insured claims mediation often devolves
The document discusses the lack of regulation of remittance fees charged by money transfer organizations and banks. It details research by ACORN International that found remittance fees to be much higher than reported by the World Bank, often over 20% of the transaction amount. The research found little response from banks to requests to reduce fees and an absence of oversight or regulation of remittance fees by government agencies in sending or receiving countries. ACORN International is now working with legislators to draft laws establishing regulatory oversight of remittance fees to help lower costs for immigrant families.
Student Project There is no extension of the due date for t.docxjohniemcm5zt
Student Project
There is no extension of the due date for the project. Late projects will not be accepted. A grade of zero will be given if the project is not turned in on time. Hard copy of the paper must be turned in to this instructor on or before the due date . No electronic submission
Paper Requirements
Use the DSM V to identify a coded disorder and use the symptoms of that disorder to create a client and case vignette. The client you create should meet all the criteria for the diagnosis you select. See following page
Student project paper organization and points distribution:
· 2 pts APA cover (page 1)
· 3 pts APA format entire paper (running heads and citations etc.)
· 20pts Accurately completed Multiaxial sheet (page2)
· 50 pts Create a client and present your client in a narrative using clinical language and terminology to describe symptoms of a DSM disorder. DSM V guidelines and criteria. This section must be at least 4 pages long and no longer than 5 pages (pages 3, 4, 5, 6) you will be penalized 5 points for each ½ page short of the 4 page narrative.
Make this person real…
· What do you observe when you meet and speak with this client
· What does this client say and how do they say it
· Describe symptoms of your client that represent indicators for an Axis I diagnosis
· Include medical issues. You must include at least one medical from Axis III
· Describe background and environmental contributors to the diagnosis at least three Axis IV factors Also provide demographics, age, race, sex etc…
· Discussion of the GAF explains criteria as it relates to your client (a paragraph 5pts.)
· You must give your client at least one assessment/ inventory/test relevant to confirming your diagnosis (depression inventory, substance abuse, OCD, bipolar or anxiety inventory etc...)
· Discuss and explain the results of the inventory ( a paragraph 5pts)
· Justify your diagnosis using DSM V criteria, terms and rule outs.( a paragraph 5pts)
· Use information secured from your two peer reviewed journal articles on the subject of the diagnosis to support your diagnosis,(a paragraph for each article 10pts)
· 10pts APA Resource/ reference page (page 7or 8) you must use and document the following:
· DSM V
· You must use, document and cite in text, at least two peer review journal articles on the topic of your diagnosis.
· The articles appear in reputable psychological research journals.
· Articles must have a publication date of 2001 to present.
· Document where you secured your assessment
· 10pts Appendix Place a copy of the inventory/assessment you used with your client in the appendix
Multiaxial Assessment
Multiaxial Evaluation Report Form
AXIS I: Clinical Disorders
Other Conditions That May Be a Focus of Clinical Attention
Diagnostic code DSM-IV name
___________ ___________________________________________
AXIS II: Personality Disorders Mental Re.
Similar to CDS Antitrust Litigation (8-28-16) (19)
Student Project There is no extension of the due date for t.docx
CDS Antitrust Litigation (8-28-16)
1. Research by: Burt I. Ross
August 28, 2016
CDS ANTITRUST LITIGATION CLAIMS
An under the radar trade
Recommendation
I recommend buying Class Member claims in the Credit Default Swap Antitrust Class Action
lawsuit at current levels. The claims are currently trading around 12, with an expected payout
of 16 within a year. This trade’s median expected return is 33.0%, with a 66.2% return on the
high end, and return of 10.8% on the low end.
Thesis Overview
A class action lawsuit was brought against numerous banks alleging anti-competitive acts that
affected the pricing of Credit Default Swaps (“CDS”) transactions, and that these banks were
unjustly enriched from these acts. A settlement was reached with the Class Plaintiffs in the
amount of $1.86 billion. This settlement will be distributed on a pro rata basis to any Class
Members who submitted qualifying claims with the Settlement Administrator, Garden City
Group, LLC. In the trial it was estimated that total damages ranged from $8-12 billion,
meaning the settlement amount represents a recovery of 15-23% (before legal and
administrative expenses). The claims currently trade at 12, meaning depending on the total
qualifying claims submitted, and timing of the disbursement, returns and IRR on the trade
could be very high.
Key Risks to Thesis
There are two potential risks to the thesis above. The first is that the total qualifying claims
submitted it is not yet public. While estimates have been created it will be hard to say
definitively where the actual total qualifying claims will turn out in the range. The second
potential risk is the timing of the settlement payment. While the administrator believes
settlement payments will occur in 2016, there is a large amount of information that must be
reviewed before distributions can be calculated and processed.
Asset Rating BUY
Catalyst Category Event Driven
Price Target 16.00
Price (8/26/2016): 12.00
Stats ($USD)
Net Settlement Fund: $1.86B
Estimated Total Claims: $8-12B
Source: Settlement Administrator (Garden
City Group, LLC)
Analyst Details
Name: Burt I. Ross
Email: ross.burt@gmail.com
Phone: 917-689-3179
Analyst Disclosure
Position Held: No
2. Research by: Burt I. Ross
August 28, 2016
Litigation Overview
In the fall of 2013 a number of lawsuits was consolidated into a class action lawsuit against 12 major banks (Bank of America,
Barclays, BNP, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, RBS, and UBS).
These banks accounted for approximately 95% of the CDS trading in the United States. The class action lawsuit alleged that the
banks conspired to prevent price transparency and competition in the market for CDS trades. Through these anti-competitive acts
it was alleged that the banks were unjustly enriched by billions of dollars in the period between January 1, 2008 and September
25, 2015.
The Class Members of this suit are pension funds, university endowments, hedge funds, insurance companies, corporate
treasuries, fiduciary and depository institutions, small banks, and money managers. The Class Members would invest in CDS,
both buying and selling the instruments. Virtually all trades were conducted “over-the-counter”, enabling the banks to keep
pricing information obscure and margins very high for their services in the transactions. As observed in a New York Times
article dated December 11, 2010 (A Secretive Banking Elite Rules Trading in Derivatives) it would be like a real estate agent
selling a house where the buyer knows only what she paid and the seller knows only what she received. The agent would pocket
the difference as her fee, rather than disclose it. Moreover, only the real estate agent – and neither the buyer nor seller – would
have easy access to the prices paid recently for other homes on the same block. While exchanges and clearinghouses were
proposed to mitigate this problem, the lawsuit claimed the banks would jointly refuse to deal with any nascent entity, thus
ensuring no exchanges or clearinghouses would be able to operate.
In December 2014 the Plaintiffs and Defendants in the class action case engaged the Honorable Daniel Weinstein (Retired) as
mediator, seeking a parallel negotiated track alongside the case in the courts. By August 2015 the Plaintiffs reached an
agreement to settle the case with the banks. As Judge Weinstein (Ret.) explains: “In the end, [Plaintiffs’] strategy, timing, and
execution resulted in one of the best settlements I have witnessed in more than 30 years of mediating, particularly given the
challenges they would have faced in litigating this complex case.” The settlement required the banks to pay a collective
$1,864,650,000.00 into a settlement fund for the class action members. Additionally, the International Swaps and Derivatives
Association (“ISDA”) agreed to adopt a number of reforms with the aim of increasing transparency and competition in the
market.
By the exclusion deadline, meaning the parties who elected to “opt out” of the settlement agreement, only five requests were
submitted out of a class of nearly 14,000. The deadline for filing a claim was May 27, 2016. All work now by the administrator
will be to verify that the claims submitted qualify, estimating the amount of bid-ask spread inflation resulting from the banks’
alleged conduct on qualifying claims, and calculating the pro rata share of the settlement in relation to the total amount of
qualified claims submitted.
Return Analysis
The settlement with the banks for $1.86 billion is before legal fees and expenses. The legal counsel of Quinn Emanuel Urquhart
& Sullivan, LLP and Pearson, Simon & Warshaw LLP together will receive 13.61% of the settlement (approximately $254
million), plus approximately $10 million in expenses. The administrators will likely receive approximately $5 million for their
work. Thus the numerator for the recovery calculation is approximately $1.6 billion.
The estimated range of damages sought in the trial were between $8 and $12 billion. Utilizing this range, the recoveries based on
the $1.6 billion that will be distributed to claimants ranges between 13.3% - 19.9%. Purchasing the claims at 12 today would
lead to returns between 10.8% and 66.2%.
Settlement 1,864,650,000$
Legal Fees (253,778,865)
Expenses (15,000,000)
Remainder for Class 1,595,871,135$
Numerator Calculation
3. Research by: Burt I. Ross
August 28, 2016
Returns could potentially be higher if the actual pool of qualifying claims turns out to be less than $8 billion. This is entirely
possible, as Class Members needed to proactively submit their claims to the administrator. Initial research seems to indicate that
there are plenty of Class Members who did not proactively submit their claims to the administrator by May 27, 2016.
Total Qualifying Claims % Recovery
Return if
Purchased at 12
8,000,000,000 19.9% 66.2%
9,000,000,000 17.7% 47.8%
10,000,000,000 16.0% 33.0%
11,000,000,000 14.5% 20.9%
12,000,000,000 13.3% 10.8%