Subprime Mortgages and Theories of Liability - Deja Vu? - Part Two
Michael Clark
August 13, 2008
Part One of this series focused on certain features of the subprime mortgages now defaulting in huge numbers and explained how these features also were uncovered in many improper transactions related to the Savings and Loan Crisis of the early 1990s as well as in the more recent scandals associated with enormous investor losses typified by Enron and WorldCom (which problems, coupled with similar corporate scandals, in turn, led to a crisis of confidence by the investing public that was followed by the enactment of various corporate governance reform measures set out in the SarbanesOxley Act). Part Two of this series now examines some cases, issues, and theories of liability that plaintiffs and regulators are relying upon to establish the civil and criminal liability of the defendants in various suits for damages sustained in connection with the implosion of the subprime mortgage market.
