... at allegations that State Street misled pension funds over how much risk was involved in the investments. Just before the housing market fell in 2007, State Street's fixed-income investment unit began to increase its investments in bonds and securities related to subprime mortgages. Customers with poor credit records were ... asset manager had $207 million left in its reserve fund. Our investment fraud lawyers at the stockbroker fraud law firm of Shepherd Smith Edwards & Kantas, LLP has ...
July 1, 2009 11:33 am
... financial services entities of one kind or another. The concentration of the filings in the financial sector is largely a result of the continuing subprime and credit crisis litigation wave. By my count, 51 of the first half filings involved subprime and ... bond documents misrepresented certain bond attributes, for which the plaintiffs seek to recover damages under the federal securities laws. It is an investor class action lawsuit seeking to recover damages under the federal securities laws, and ...
July 1, 2009 03:05 am
... in conservative instruments - not securities that wound up at the center of the American mortgage crisis, according to a draft of the complaint prepared by the law firm Quinn Emanuel Urquhart Oliver & Hedges. An Access spokesman said that JPMorgan bought the subprime securities for Access "at a time when the bank itself was unwinding its positions in similar investments." Mr. Blavatnik, who immigrated to the United States from the Soviet Union in 1978 and ...
June 22, 2009 12:44 pm
... , non-ARS investors, plan participants, and other plaintiffs. The non-ARS investors include those who invested in preferred securities, corporate bonds, mortgage-backed securities, mutual funds, and money-market funds. Just as the type of claimants has ... here. Speakers' Corner: During the period June 21-23, 2009, I will be in Palo Alto, California, where I will be participating as a faculty member at the Stanford Law School Directors' College. A summary agenda for the event can be found here.
June 22, 2009 02:32 am
... right with respect to the agency's new gap-filling regulations. Q: homeland security problem: how do we get these different agencies to work/think together? ... K. Littwin, University of Texas School of Law Why we need regulation: there is lots of misunderstanding of the products consumers are buying; subprime borrowers didn't understand ... Consumer Reports can't come in and rate the loan, and consumers who invest in educating themselves are less likely to help them in the long term. Disclosure needs ...
June 19, 2009 09:28 pm
... you want to spend the resources? That varies with time. We wanted to focus on privacy, info security, dietary supplements, big infomercials. So you have to pull away from other cases ... sent a message not to do that. We did the same thing in coin/stamp investments and in other advertising. Going to the root of the problem: still useful for the FTC. Cutler: ... between Sept. 2004 and Feb. 2005. Used both prime and subprime buyers. Many consumers didn't understand the terms of their mortgages-the lack ...
June 19, 2009 06:22 am
In its most significant enforcement action yet related to the subprime meltdown, on June 4, 2009, the SEC filed a civil securities fraud complaint (here) in the Central District of California against Angelo Mozilo, the former CEO of ... and riskier loans, which these senior executives were warned might curtail the company's ability to sell them" to investment bankers and other mortgage buyers. The complaint alleges that while the company was issuing reassuring statements to investors, Mozilo " ...
June 5, 2009 02:13 am
... attorneys general, who filed a predatory lending lawsuit against Countrywide Financial over its marketing of high-risk subprime and option adjustable-rate mortgage (ARM) loans. Bank of America bought Countrywide in 2008. The article says ... settlement. Bank of America has already been sued by investors in securities backed by the modified mortgages, who allege they're paying for the settlement with a reduced value of their investments. Consumer advocates also expressed concerns that not all of the ...
May 29, 2009 09:29 am

Cleveland Reeks: Part Deux

(Bank Lawyer's Blog)
... recently over a federal district court judge's dismissal of the laugh-worthy lawsuit filed by the city of Cleveland against investment banking institutions that securitized subprime mortgage loans. According to the city, the implosion of subprime mortgage loans is ... become. As I said last year, the suit was "an opportunistic, and in some respects ingenious and disingenuous, attempt to secure a federal bailout without actually using tax dollars..." I also made some other predictions about how this ...
May 27, 2009 07:13 pm

LAW.COM Newswire Highlights May 27, 2009

(New York Supreme Court Criminal Term Library Blog)
... Mississippi Fund to Lead Subprime Class Action The American Lawyer Remember Judge Jed Rakoff's shock at the revelation that Coughlin Stoia monitors the investment portfolios of pension ... lead plaintiff in a securities class action against Merrill Lynch -- even though Bernstein's client has a similar monitoring deal with 12 law firms. Rakoff ... Lilly Ledbetter Fair Pay Act, a federal judge has refused to apply the law's relaxed time limits to failure-to-promote claims. Finding that Congress explicitly ...
May 27, 2009 12:58 am
... 6, 2009 paper entitled "Securities Litigation and the Housing Market Downturn" (here) written by Harvard Law Professor Allen Farrell and Atanu Saha of Compass Lexecon. The authors examined the question of foreseeability of the housing downturn ( ... decline) beginning in 2006, as that is when the vast majority of class periods in the current wave of securities lawsuits begin, even though the bulk of the subprime investment writedowns took place in the fourth quarter of 2007 and the first quarter of ...
May 26, 2009 02:42 am
... left investors holding as much as $330 billion which they are presently unable to access. Craig T. Jones, an attorney with the Atlanta law firm of Page Perry LLC, says that "the entire auction rate securities market was a house of cards, ... is filing lawsuits and arbitrations all over the country to recover investors' losses from auction rate securities and other fraudulent investments tied to the subprime mortgage crisis. "If you are an investor who was misled, " says Jones, "we would be happy to ...
May 22, 2009 11:38 am
... Goldman Sachs Mortgage Company and GS Mortgage Securities Corp." regarding certain subprime mortgage lending issues. The agreement is reported to be the first of its kind in its pursuance of an investment bank facilitating the origination of unfair loans ... investigation concerned: whether securitizers may have facilitated the origination of "unfair loans" under Massachusetts law whether securitizers may failed to ascertain whether the loans purchased from originators complied with the originators ...
May 19, 2009 12:59 pm
... disjointedly" throughout the complaint, as a result of which the complaint "never offers a cohesive presentation of the required elements for securities fraud for each defendant." Judge Pechman refers to the complaint as embodying "puzzle pleading." The opinion recounts ... in which the City of Cleveland sought to hold 21 investment banks liable under Ohio nuisance law in connection with the banks' securitization of subprime mortgages. The complaint alleged that the banks (which had not originated ...
May 19, 2009 03:09 am
A new study says bailed-out banks and investment firms actively participated in the subprime lending market, the Los Angeles Times reported May 6. The Center for ... incomes and debts. Banks then bundled the loans and sold them as securities, the article explained. When the homeowners defaulted, those "securitized" loans became the "toxic assets" ... clients' legal rights and we're not afraid to enforce them -- in a court of law, if necessary. We have successfully modified many mortgages, including ...
May 15, 2009 09:32 am
... to falling interest rates and increased leverage that required less operating capital to make loans. When the subprime credit market collapsed, the demand for credit-based securities fell sharply and the holders of those instruments took a big hit. Many, ... duped. Those investors, including many corporations and other large institutions, are turning to private law firms like Page Perry and to recoup investments that were made in reliance upon false representations about risk and liquidity. According ...
May 14, 2009 08:16 am
... lost significant value in 2008. One of the recent awards included punitive damages. Many law firms around the U.S., including our firm, have been retained by ... Keegan funds. The funds were run by Jim Kelsoe, the chief-fixed income investment officer of the Memphis-based brokerage's Morgan Asset Management. The seven mutual ... as low-risk bond funds. They turned out to be highly concentrated in subprime mortgage-backed securities and collateralized debt obligations (CDO's). The losses are astounding. ...
May 12, 2009 10:31 am
... to get involved. The SEC does not have a consistent track record when it comes to enforcing the nation's securities laws, and its stance on derivatives is no exception. For instance, a former SEC commissioner told Congress in 2006 that the ... misrepresentation that went on in these markets." Given the current financial crisis and the failure of many investment markets due to the subprime mortgage crisis, many disgruntled investors are turning to lawyers to determine whether their losses may have ...
May 7, 2009 02:31 pm
... " are, in fact, lawsuits spawned by true Ponzi schemes, massive frauds in the sales of securities and excessive risk taking by so-called investment professionals in an effort to pad their own pockets without regard for the consequences to ... T. Jones, an Atlanta investor fraud lawyer with the firm of Page Perry, LLC, "Lawyers did not cause the subprime crisis or the collapse of the financial markets. Lawyers will, however, help defrauded investors recoup losses from unscrupulous broker-dealers. " ...
May 6, 2009 03:21 pm
... had misled investors about the company's origination practices and financial condition. Relatively few of the many subprime and credit crisis-related securities lawsuits filed to date have yet been settled or otherwise resolved to date. (A ... little to say about many of the other pending cases that involve relatively smaller companies, and relatively smaller investment losses. In this context then, the Beazer Homes settlement may be significant for a number of reasons. First, the case appears to ...
May 5, 2009 06:21 pm
 
 

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