Alleged Mismanagement of a $600K Investment by Renowned American Bank

This case study examines an alleged failure by a prominent American bank, acting as a trustee, to appropriately manage a $600K investment over eight years.

ByExpert Institute

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Published on February 6, 2024

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Case Overview

This case study revolves around an individual who entrusted a significant investment, amounting to $600K, to a prominent American bank. The bank was appointed as trustee and is alleged to have failed in its duty to appropriately manage and grow this substantial investment. This was over a period exceeding eight years.

The plaintiff’s attorney seeks an expert in investment banking to scrutinize relevant bank statements, elucidate on the obligations and duties of trust investment banks concerning their clients’ investments, and draft a comprehensive report detailing what the potential return on the individual’s investment could have been.

Questions to the expert and their responses

Q1

Please describe your investment banking background.

I bring three decades of finance experience to the table, having served as both chief risk officer and chief credit officer of a large broker-dealer. My academic credentials include a master’s degree and a doctorate in finance.

Currently, I lead in the Master of Engineering in Financial Technology program at Duke University.

Q2

Briefly, what duties/obligations do trust investment banks have with regard to their clients' investments?

Trust investment banks act in their clients’ best interests. This includes conducting regular reviews of accounts, focusing on investment objectives and risk tolerance levels. Unfortunately, these types of accounts often don’t receive the scrutiny they should.

Q3

Have you ever reviewed a similar case? If yes, please elaborate.

As the former Chief Risk Officer of Wells Fargo Advisors, the second-largest bank-owned brokerage firm, I have encountered situations like this that are regrettable yet not uncommon.

About the expert

This expert brings over 25 years of experience in trading, electronic trading, and capital markets to the case. They hold an MS in finance and a PhD in business administration and finance and have held high-ranking positions at major financial institutions, including serving as the Chief Risk Officer and Chief Credit Officer at a large bank-owned brokerage firm. Currently, they are a clinical assistant professor of finance and direct a master's program in financial technology and cybersecurity at a leading university in North Carolina.

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