The U.S. Office of Thrift Supervision (OTS) initiated an enforcement action against the owners, officers, and directors of a failed S&L, alleging (among other things) mismanagement of the institution’s mortgage securities portfolios.

In a written report and in hearings before an OTS administrative law judge on behalf of the respondents, NERA's expert analyzed the design and management of the investments, liabilities, and hedges at issue. NERA found that the institution’s practices were consistent with standard industry practice at the time, and identified the economic bases for many of the disputed transactions.

The judge cited NERA's expert in support of more than two dozen Findings of Fact. In his recommended decision, which is subject to approval by the Director of OTS, the judge dismissed all claims.