Activity:

• Reviewed the trading operations of an investment bank for a large, complex, financial services lawsuit.  Recreated the P/L of a number of derivatives and securities trading desks for a period of two years.  The complexity of the task was compounded by the interconnectivity of profitability of each desk and by the poor records and disparate systems infrastructure that existed at the investment bank.

Results:

• Recreated the P/L by using a bottom-up profitability analysis. By estimating the profitability of each transaction, its contribution to the portfolio, and the profitability of related trading desks, we were able to estimate the overall investment bank profitability of the transactions at issue in the litigation.