January 11, 2013
Before The Next Crisis: Now’s The Time to Rethink The Martin Act
The Martin Act, New York State’s far-reaching securities fraud statute, has been a powerful tool for New York law enforcement officials to pursue wrongdoing by financial institutions. It has a broad definition of fraud and a long statute of limitations. … Continue reading
January 11, 2013 in Upstream litigation | Permalink | No Comments
January 9, 2013
Scheindlin Allows More Fraud Claims Against Rating Agencies To Go To Trial
Judge Scheindlin (SDNY) has ruled that investors can proceed with their fraud claims against the big three rating agencies for giving a top rating to a SIV. There are no surprises in this opinion as it tracks the reasoning of … Continue reading
January 9, 2013 in Upstream litigation | Permalink | No Comments
FIRREA as a Mortgage Lending Enforcement Tool
William Johnson of the Fried, Frank law firm has an interesting analysis of enforcement cases that invoke the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) which is unfortunately behind the NYLJ paywall. Johnson discusses the history of … Continue reading
January 9, 2013 in Upstream litigation | Permalink | No Comments
December 17, 2012
NCUA Sues JP Morgan over MBS Representations
The National Credit Union Administration has sued J.P. Morgan Securities and Bear, Stearns & Co. for alleged securities laws violations relating to the sale of mortgage-backed securities to 4 credit unions that are now in NCUA conservatorship. According to the … Continue reading
December 17, 2012 in Upstream litigation | Permalink | No Comments
December 3, 2012
NY AG Sues Credit Suisse over Bad Due Diligence
The complaint is here. The allegations are similar to those that the NY AG made against JPMorgan.
December 3, 2012 in Upstream litigation | Permalink | No Comments
November 28, 2012
New York Attorney General Sues J.P. Morgan for Fraudulent and Deceptive Acts in Promoting and Selling Mortgage-Backed Securities
In New York v. J.P. Morgan Securities LLC, No. 451556/2012 (County of New York Oct. 10, 2012), the New York Attorney General sued J.P. Morgan (and several of its affilliates, including entities formerly a part of Bear, Stearns & Co.) for … Continue reading
November 28, 2012 in Upstream litigation | Permalink | No Comments
HSH Nordbank Sues Barclays Bank for Fraud in Issuing Mortgage-Backed Securities
In HSH Nordbank v. Barclays Bank, No. 652678/2011 (New York County Apr. 2, 2012), HSH Nordbank claims that Barclays Bank issued MBS offering materials that included false and misleading statements regarding (1) assignment of mortgages and notes to trusts, (2) the tax treatment … Continue reading
November 28, 2012 in Upstream litigation | Permalink | No Comments
