Banking Experts Discuss Alleged Manipulation of Global Financial Markets

    Banking Expert WitnessThis litigation involves the alleged manipulation of a major international financial index in New York. It is alleged that many of the major global financial institutions conspired to manipulate the rate. The rate in question is used to set rates on various financial instruments and is calculated based on submissions by banks that sit on panels. It is alleged that each bank panel lied to the rate administrator about its own borrowing costs, knowing that other banks would rely on the accuracy of that information. As a result of this manipulation, a number of traders, bank executives, and others reaped substantial returns.

    Question(s) For Expert Witness

    • 1. Please briefly describe your familiarity with the above subject matter.
    • 2. Are you especially familiar with large bank borrowing costs, and the banking industry in general?

    Expert Witness Response E-053274

    I was the first person pointing to the possibility of collusion in the determination of this rate. Following 2008 articles from the Wall Street Journal that discussed the possibility that some banks were submitting too-low quotes, I was the lead author on a study analyzing and flagging the collusive behavior. I am very familiar with manipulation of this rate and serve as an advisor to regulator agencies on methodologies of rate reform. I have also flagged a number of other instances of possible bench-marking manipulation, including collusion relating to credit default swaps, gold, silver, platinum, aluminum, and natural gas. I recently testified on behalf of the U.S. Government in a natural gas manipulation case relating to allegations that I brought against BP, and we earned a favorable verdict.

    Expert Bio

    This antitrust, securities, and financial regulation professional is highly qualified with prior experience as an expert witness. She has flagged potential collusive behavior in her work on conspiracies and manipulations, leading to large-scale investigations on multiple occasions including the Libor scandal. The expert earned her Bachelor’s degree from Universidade Católica Portuguesa in Lisbon as well as a Master’s degree in Economics from Universitat Pompeu Fabra in Barcelona. The expert also possesses a Master’s and Ph.D. in Economics from the University of Chicago. She is an Adjunct Associate Professor in the Department of Economics at a prestigious New York business school, and works as the Managing Director for an economic advisory firm. Her main areas of specialization are econometrics, monetary and financial economics, and applied industrial organization. She has worked as a consultant for the Bureau of Economics at the Federal Trade Commission and the World Bank.

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