During a session of the Professional Liability Underwriting Society International conference held in San Francisco earlier this month, George Gowen, a member of Cozen O'Connor in Philadelphia, detailed three categories of cases emerging from the subprime crisis–against mortgage lenders, firms involved in the securitization process, as well as investment managers and advisers.
An offshoot of the second category–lawsuits against securities issuers and underwriters–is one unusual case filed by the City of Cleveland against 21 investment banking firms in January, he noted.
The suit targets “all major Wall Street firms” as defendants, under the theory that the securitization process the investment banks “created and funded” had “fed the growth of predatory lending practices,” reported Mr. Gowen.
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