NYIAC Virtual Talks Members’ Breakfast Series with NERA Economic Consulting


September 27, 2021 8:30 am - 9:00 am


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Strengthening Your International Arbitration Case When Securities and Financial Economics Are At The Forefront
Dr. Vinita Juneja, Managing Director
Robert Patton, Associate Director

Many high-profile international arbitration (IA) matters center on financial economics and issues involving securities. In this presentation, Dr. Juneja and Mr. Patton will focus on disputes that require securities and finance expertise, addressing analyses used in these types of cases, how they were conducted, and the result in various representative engagements. In addition, they will present techniques and tools used to address both liability and quantum issues. Topics include:

Alleged expropriation of firms and financial institutions.
o   Valuation of the financial institution prior to the alleged expropriation using direct observations of market value and relative value; and
o   Valuation of complex securities to address allegations that valuable securities were swapped out for valueless securities in order to extract value from the financial institution.

Allocation of a settlement from an alleged “creeping expropriation” of a publicly traded firm, by way of a series of government measures that reduced shareholder value.
o   Event studies of announcements of government measures; and
o   Developing an allocation methodology based on event study results.

Financial asset valuation.
Several recent investor-state disputes have involved claims that a government action adversely affected the value of a financial instrument held by a foreign investor and the instrument in question is an investment protected under a bilateral or other investment treaty. Specifically, a number of foreign banks brought ICSID claims against the Republic of Croatia over legislation adopted in 2015 to retroactively convert mortgages denominated in Swiss francs to euros.
o   Foreign exchange;
o   Mortgage prepayment models;
o   Risk-free rate data; and
o   Other financial concepts.