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More Credit Crunches
Posted on 20 Feb 2008 by Ed Viguerie

Two recent articles in Business Week and the New York Times indicate that subprime mortgage lending crisis is spilling over into other markets. From the New York Times , we find out that it is not just the subprime borrowers that are having a tough... Read More

Tags: Subprime

Introspection -- Credit Crisis
Posted on 17 Apr 2008 by Ed Viguerie

The Financial Times published two interesting pieces last week ( here and here ) on the efforts of major banks to take blame for the current financial crisis and to suggest areas for reform. FT characterizes these efforts as attempts to avoid increased... Read More

Tags: Subprime

Rapp & Matasar on Potential Rating Agency Liability & subprime backed-securities
Posted on 13 Oct 2008 by Robert N. Rapp and Scott C. Matasar

Rating agencies assigned credit ratings to subprime Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDOs). In making investment decisions, many investors relied on these credit ratings. However, the accuracy and integrity... Read More

Tags: Subprime

She Came In Through The Bathroom Window
Posted on 29 Apr 2008 by Ed Viguerie

There were a number of interesting real estate/mortgage crisis/collapse of western civilization stories over the weekend: From the Washington Post comes this story about the challenges facing suburban law enforcement now required to police so many... Read More

Tags: Subprime

Is the FDIC Gearing Up for Subprime-Induced Bank Meltdown? .
Posted on 29 Feb 2008 by LexisNexis Emerging Issues Community Staff

A few days ago, the Wall Street Journal reported that the Federal Deposit Insurance Corporation (FDIC) is recruiting its own retirees in order to beef up staff in anticipation of a sharp increase in bank failures, which could amount to 100 or more in... Read More

Tags: Subprime

Demonstrating Scienter Requirement in Subprime Securities Lawsuits
Posted on 21 Dec 2007 by Joan Grossman

A recent ruling by U.S. Judge George H. Wu of the Central District of California indicates that shareholders may have difficulty in demonstrating the scienter requirement in subprime securities lawsuits. On Dec. 4, Judge Wu dismissed the second amended... Read More

Tags: Subprime

Joy Harmon Sperling on the Groundbreaking Decision in Massachusetts v. Fremont Investment
Posted on 21 Apr 2008 by Joy Harmon Sperling

The Massachusetts Superior Court recently enjoined a mortgagee from foreclosing on "presumptively unfair" mortgages without first obtaining the assent of the Massachusetts Attorney General or, if approval is not granted, without the Court's... Read More

Tags: Subprime

James M. Wilson Jr. on the Recent Disclosures By Fannie Mae and Freddie Mac of Losses Attributable to Sub-Prime Mortgages and Allegations of Collusion to Inflate Appraisals
Posted on 6 Feb 2008 by James M. Wilson, Jr.

It now appears that the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac") are subject to the same kind of bruising losses afflicting other large financial institutions... Read More

Tags: Subprime

Agreement on a Bailout Plan
Posted on 29 Sep 2008 by Ed Viguerie

Thank God for Friday's Presidential debate. It got the two presidential campaigns out of town just long enough for Congressional leaders to reach a consensus on a bail-out plan. It's called the Emergency Economic Stabilization Act of 2008 . It... Read More

Tags: Subprime

Subprime Lending or Options Backdating, Which Will Receive a Legislative Haymaker?
Posted on 19 Mar 2008 by John Rak

Recently, the financial industry and the country itself has faced two sweeping market-related “scandals” or “crises” (for lack of a better term): the issues in the mortgage industry with subprime lending, and the executive stock... Read More

Tags: Subprime

Lapine on City of Cleveland v. Ameriquest Mortgage Securities, Inc.
Posted on 15 Jun 2009 by Kenneth M. Lapine

In City of Cleveland v. Ameriquest Mortg. Sec., Inc. , 2009 U.S. Dist. LEXIS 41303 (N.D. Ohio May 15, 2009) , the City of Cleveland filed an action against over 20 major investment banks, accusing the banks of creating a public nuisance by reason of their... Read More

Tags: Subprime

The Congress Strikes Back
Posted on 23 Sep 2008 by Ed Viguerie

Criticism of Paulson's bailout plan came swiftly after release of the details on Friday. Examples can be found here , here , here , and here . On Monday Congressional Democrats submitted counter-proposals. Key elements include oversight and the acquisition... Read More

Tags: Subprime

Ben Bernanke Explains It All
Posted on 24 Sep 2008 by Ed Viguerie

Like many people I assumed that the Treasury Department, as part of its the bailout plan for the financial industry, would buy up bad debt at less than market value. I wondered how firms would make up for the hole that would leave in their balance sheets... Read More

Tags: Subprime

Breaking the ARS Liquidity Logjam
Posted on 4 Mar 2008 by LexisNexis Emerging Issues Community Staff

Zealous Trading Group's announcement that its electronic marketplace will facilitate secondary trading for the $330 billion market of Auction Rate Securities might help increase overall credit market liquidity, and perhaps indirectly help ease the... Read More

Tags: Subprime

Wachovia, KPMG Reach $627 Million Settlement With Investors
Posted on 9 Aug 2011 by Timothy Raub

NEW YORK - (Mealey's) In what Wachovia Corp. shareholders' attorneys are calling the single-largest recovery for claims brought "solely pursuant to" the Securities Act of 1933, the shareholders, Wachovia, certain of its affiliates and... Read More