Chicago Tribune (03/11/08); Sachdev, Ameet
Navigant Consulting Inc. says civil lawsuits tied to the subprime mortgage crisis totaled 278 in 2007, and experts believe mounting subprime losses will push the total number of cases above the 559 filed during the savings and loan crisis. Of last year's cases, 43 percent involved allegations of predatory lending, and 22 percent involved securities. Chicago-based attorney Richard Gottlieb says lawsuits are getting creative, and observers note that all parties involved in the mortgage business face litigation. Nearly two dozen investment banks are being sued by the City of Cleveland because their subprime investments allegedly created a public nuisance, while officials in Buffalo are suing 28 lenders with regard to vacant properties. Without factoring in the costs of these lawsuits, experts believe losses from the subprime meltdown could reach $400 billion.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment