Paula Ramada, who has a doctorate in economics from the Massachusetts Institute of Technology, says she can calculate how much investors lost from banks’ alleged rigging of benchmark interest rates. Now all she needs is funding, a team of analysts and weeks to run the numbers.
If banks manipulated rates tied to $300 trillion in instruments such as mortgages and student loans, how much did it cost investors ?
Investors suing banks to recover losses must quantify those damages, which some analysts have estimated will total billions of dollars. While regulators have uncovered e-mails between employees trying to rig the London interbank offered rate, the benchmark for more than $300 trillion of securities worldwide, it has been harder to show that investors actually lost money.
'The facts are pretty clear on the plaintiffs’ side, but it’s still an issue of proving damages', said Samuel Buell, a professor at Duke University School of Law in Durham, North Carolina, and a former lead prosecutor for the U.S. Justice Department’s Enron Task Force.
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