tag:blogger.com,1999:blog-6022241666945681777.post2166474769127161925..comments2024-01-02T04:37:12.836-08:00Comments on Economic Despair: Subprime boomtime for lawyersEconomic Despairhttp://www.blogger.com/profile/15834343361456412739noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6022241666945681777.post-80612369775252680142007-04-29T14:05:00.000-07:002007-04-29T14:05:00.000-07:00As far as I understand it, CS are being sued along...As far as I understand it, CS are being sued along with the loan originator and the broker. And the allegations against CS relate to secondary stuff - misinformation in packaging the bond, lumping loans together inappropriately, and (hard to understand this) not pursuing defaults or insurance claims. It's not to do with the loans themselves.<BR/><BR/>Plaintiff has demanded a jury trial, but even so CS has a good chance of winning on the fine print - unless they managed the thing with incredible sloppiness.<BR/><BR/>Are they named as defendant in the hope of a face-saving settlement? Or will CS hold out in the expectation that the originating bank's insurer will carry the can?<BR/><BR/>Anyway, this bond was issued in 2004 - before subprime really took off. Much much more to come.Anonymousnoreply@blogger.com