November 26, 2012
Borden & Reiss: “An Uneasy Justification for Prosecutorial Abdication in the Subprime Industry
In an Uneasy Justification for Prosecutorial Abdication in the Subprime Industry, Professors Brad Borden and David Reiss argue that individuals must be accountable for actions they took that led to the financial crisis. Failure to prosecute individuals will not deter similar behavior in … Continue reading
November 26, 2012 in Upstream litigation | Permalink | No Comments
November 19, 2012
Further Thoughts on Prosecutorial Abdication
I was discussing Prosecutorial Abdication with a friend who used to work in a prosecutorial office. While she agreed with what Brad and I had written, she also highlighted the technical and training challenges that prosecutors face in putting together … Continue reading
November 19, 2012 in Upstream litigation | Permalink | No Comments
November 16, 2012
Federal Court of Australia Holds Standard & Poor’s Liable for Misrepresentaions in Ratings of CDOs
In a treatise-length opinion, the Federal Court of Australia held that Standard & Poor’s is liable for damages that investors incurred as a result of purchasing CDOs that Standard & Poor’s had rated AAA. See Bathurst Regional Council v Local … Continue reading
November 16, 2012 in Upstream litigation | Permalink | No Comments
November 14, 2012
Judge Cote (SDNY) Allows FHFA To Proceed in Suit Against JPMorgan
The court said that the FHFA, Fannie and Freddie’s regulator, can proceed with its securities fraud claim relating to billions of MBS bought by the two mortgage companies. The allegations turn on allegedly false representations made by the bank relating … Continue reading
November 14, 2012 in Upstream litigation | Permalink | No Comments
November 10, 2012
Australian Court Rules S&P’s Ratings of MBS were Misleading
Hannah Low and Jonathan Shapiro of the Australian Financial Review report that an Australian Federal Court ruled that Standard & Poor’s rating of complex financial products was misleading. The court held that the credit assessment process was negligent and no … Continue reading
November 10, 2012 in Upstream litigation | Permalink | No Comments
November 9, 2012
Federal Prosecutors Sue Bank of America Over Mortgage Program
Ben Protess reports that federal prosecutors in New York sued Bank of America on Wednesday, accusing it of carrying out a mortgage scheme that defrauded the government during the depths of the financial crisis. Ben Protess, Federal Prosecutors Sue Bank of … Continue reading
November 9, 2012 in Upstream litigation | Permalink | No Comments
