In 2011, an asset manager, acting as a securities lending agent with discretionary authority, had invested the securities lending portfolio of an employee benefit insurance fund’s in asset-backed commercial paper, including SIV-lites. The insurance fund filed claims of breach of contract and breach of fiduciary obligations in light of investment guidelines and the pension fund’s risk-averse investment objectives.
SFC Associates reviewed and assessed the bank’s policies and practices with respect to management of the plaintiff’s securities lending program and whether these conformed to the investment guidelines, industry standards and the bank’s fiduciary responsibility and obligations to the fund. Additionally, SFC calculate damages that the fund suffered. SFC Associates provided a detail expert report as well as deposition and trial testimony. The case settled favorably for the plaintiff.