Tuesday, January 22, 2008
The New York Times provides a catalogue of the various types of lawsuits, brought by both regulators and private parties, resulting from the collapse of the mortgage-related securities markets. The common theme is whether lenders and investment banks provided sufficient information to borrowers and investors about the risks posed by subprime loans and the securities backed by them. A quote from Professor Tamar Frankel sums it up: “What strikes me here is that this a tainted system from A to Z. Everybody blames everybody else. If you look at what is being said, there isn’t one who doesn’t blame another and there is half-truth in everything.” NYTimes, If Everyone’s Finger-Pointing, Who’s to Blame?