As they offer a growing array of sophisticated financial and risk management services, commercial banks, investment banks, insurance companies, and other financial institutions increasingly confront complex litigation and regulatory risks. ERS Group’s finance and banking experts combine outstanding academic credentials with significant consulting and regulatory experience. They have extensive knowledge of the strategies, policies, practices, and analytical techniques employed in finance and banking today.       

Capital adequacy Compliance analysis Assessment of lending practices Adequacy of due diligence Lender liability issues Failure prediction Analysis of reasons for failure		Credit scoring Loan portfolio valuation Core deposit valuation Risk assessment and risk management Value-at-risk analysis Interest rate risk and gap analysis Director and Officer "litigation"

ERS Group Assists in Fifth Third Bank of Ohio v. U.S. ERS Group economists analyzed six “supervisory acquisitions” of failing financial institutions by a rapidly expanding thrift. As part of this effort, our experts analyzed the effects of changes in the regulatory treatment of goodwill arising from these acquisitions and responded to claims for lost profits, restitution and reliance damages.

Schwartz v. Visa International, MasterCard Counsel for defendant MasterCard retained ERS Group to evaluate plaintiff’s allegation that MasterCard’s foreign currency conversion rates were unconscionable. Following testimony at trial by ERS Group, the court found no violation of law based upon unconscionability.

ERS Group Analyzes Mortgage Disposition Strategies An ERS Group economist was retained to analyze the financial effects of alternative strategies for disposing of a portfolio of mortgages acquired as part of a government-assisted takeover of a failed savings bank.

FDIC Retains ERS Group to Investigate Failure of Bank of New England An ERS Group Economist led a team including four academic economists retained by the U.S. Federal Deposit Insurance Corporation to analyze the failure of this large commercial bank and to respond to charges by holding company bondholders that regulatory agencies arranged the fraudulent conveyance of holding company assets to the bank.

First Republic Bank Retains ERS Group Retained by directors and officers after the failure of First Republic Bank, ERS Group responded to claims of mismanagement and imprudent banking practices, analyzed the profitability and risk characteristics of major lending relationships, and analyzed transactions between the bank and its parent holding company.

ERS Group Advises Credit Union Board Advising the board of directors of an underperforming credit union, ERS Group Special Consultant Alan Hess recommended changes in performance evaluation and monitoring procedures to improve long-run performance.

ERS Group Investigates Due Diligence Efforts in Insurance and Annuity Association et al. v. Sergeant Electrical ERS Group economists investigated the adequacy of “due diligence” undertaken by two financial institutions prior to their separate decisions to invest in a telecommunications supply and installation company.

ERS Group Calculates Late Trading and Market Timing Damages ERS Group economists assisted the MFS family of mutual funds in developing a model for calculating the losses to long-term shareholders due to late trading and market timing practices. The results of this work were used in the company’s negotiations with the U.S. Securities and Exchange Commission.

	Anthony Saunders and M. Cornett (2000; 2003). Financial Markets and Institutions: A Modern Perspective  (1st Ed., 2nd Ed.) Irwin/McGraw-Hill.

	Anthony Saunders (1999; 2002). Credit Risk Measurement: Value at Risk and Other New Paradigms  (1st Ed., 2nd Ed.) John Wiley and Sons.

	Anthony Saunders and J. Lim (1990). IPO's and Venture Capitalists: A Test of the Dynamic Strategy Hypothesis  ICFA.

	Anthony Saunders, J. Ronen, and A. Sondhi (1990). Off Balance Sheet Activities  Dow-Jones.

	R. Preston McAfee and John McMillan (1988). Incentives in Government Contracting  University of Toronto Press.

	Anthony Saunders, Nadia Massoud, Barry Scholnick (2006). The Cost of Being Late  The Cost of Being Late: The Case of Credit Card Penalty Fees. AFA 2007 Chicago Meeting

	Anthony Saunders, Barry Scholnick, Nadia Massoud, Santiago Carbo-Valverde and Francisco Rodriquez-Fernandez (2006). Economics of Credit Cards  The Economics of Credit Cards, Debit Cards and ATMs: A Survey and Some New Evidence

	Anthony Saunders, L. Allen, J. Jagtiani, and S. Peristiani (2004). The Role of Financial Advisors in Mergers and Acquisitions.  Journal of Money, Credit and Banking

	Anthony Saunders, Y. Amihud, and G. DeLong (2003). The Effects of Cross-Border Bank Mergers on Bank Risk and Value.  Journal of International Money and Finance

	Anthony Saunders, and E. Altman (2002). Credit Ratings and BIS Capital Adequacy Reform Agenda.  Journal of Banking and Finance

	James Wilcox and S. Swidler (2002). Information about Bank Risk in Options Prices.  Journal of Banking and Finance

	James Wilcox and T. Vermilyea (2002). Who is Unbanked, and Why: Results from a Large, New Survey of Low- and Moderate-Income Individuals.  Proceedings of the 38th Annual Bank Structure Conference Federal Reserve Bank of Chicago.

	James Wilcox and S.H. Kwan (2002). Hidden Cost Reductions in Bank Mergers: Accounting for More Productive Banks.  Research in Finance

	Anthony Saunders, A. Gande, and M. Puri (1999). Bank Entry Competition and the Market for Corporate Securities Underwriting.  Journal of Financial Economics

	Alan Hess and K. Dewenter (1998). An International Comparison of Banks Equity Returns.  Journal of Money, Credit, and Banking

	James Wilcox and D. Hancock (1998). The Credit Crunch and the Availability of Credit to Small Business.  Journal of Banking and Finance

	Alan Hess and K. Laisathit (1997). A Market-Based Risk Classification of Financial Institutions.  Journal of Financial Services Research

	Anthony Saunders, A. Gande, M. Puri, and I. Walter (1997). Bank Underwriting of Debt Securities: Modern Evidence.  Review of Financial Studies

	Anthony Saunders and J.P. Mei (1997). Have US Financial Institutions Real Estate.  Review of Economics and Statistics

	James Wilcox and D. Hancock (1997). Bank Capital, Nonbank Finance, and Real Estate Activity.  Journal of Housing Research

	Alan Hess (1995). Do Regulated Utilities Have Growth Opportunities?  Assessment Journal

	Alan Hess and A. Kamara (1995). The Term Premium: Default, Liquidity and Interest Rate Risk.  Journal of Finance

	James Wilcox and D. Hancock (1994). Bank Capital, Loan Delinquencies, and Real Estate Lending.  Journal of Housing Economics

	James Wilcox and J. Peek (1991). The Measurement and Determinants of Single-Family House Prices.  AREUEA Journal

	Alan Hess and C. Smith (1988). Elements of Mortgage Securitization.  Journal of Real Estate Finance and Economics

	Alan Hess and P.A. Malatesta (1986). Discount Mortgage Financing and Housing Prices.  Housing Finance Review

	Anthony Saunders, T. Grammatikos, and I. Swary (1986). The Returns and Risks of US Banks Foreign Currency Activities.  Journal of Finance.