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More bank lawsuits to come over MBS?


CONeal
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http://finance.yahoo.com/news/ny-sues-jpmorgan-over-bear-002646117.html;_ylt=AuVJeu92dek7hNQnsGK0a2iiuYdG;_ylu=X3oDMTNyaDN0ZmczBG1pdANGUCBUb3AgU3RvcnkgTGVmdARwa2cDNmJjMTBiMzEtMDExZi0zOTFkLTk0NzYtZjI0YjQ5YzEzOWQ3BHBvcwMxBHNlYwN0b3Bfc3RvcnkEdmVyAzQzMTAxYzAwLTBjMzctMTFlMi1iM2I3LThiY2FhYjk3YjdhZQ--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

 

Will these lawsuits ever end. 

 

Schneiderman, a co-chair of the working group, told Reuters on September 20 that his office would take action shortly and that he expected federal authorities to do so as well.

People familiar with the matter said a federal-state announcement was planned for Tuesday and Schneiderman's filing the case on Monday appears to have irked his federal colleagues.

Two federal officials familiar with the investigation said that while the lawsuit was brought under New York State law, much of the investigation was handled at the federal level.

Schneiderman's lawsuit, filed in New York State Supreme Court in Manhattan, was based on the Martin Act, New York State's powerful securities fraud statute, which does not require proof of intent to deceive.

Similar cases against other banks will follow, according to a person familiar with the lawsuit.

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Will these lawsuits ever end. 

 

Not anytime soon most likely.  Asbestos lawsuits have been going on for over 40 years.  Exxon Valdez litigation is still ongoing since the spill in 1989.  In a semi-related type of matter and no where near the scale, there was litigation regarding Drexel Burnham for a decade.  These MBS related lawsuits will go on so long as blood can be squeezed from a stone and the last "aggrieved" person feels they've had their day in court.  So a long, long time.

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Not sure why but I thought the statute of limitations had passed for this stuff.  There was a rush to file I believe last year b/c some companies would lose the ability to sue.  That's why I thought the above news regarding JPM and Bear a bit of a suprise.

 

 

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