Author Archives: Isaac Gradman

Pennsylvania Joins Countrywide Settlement, But Where Is the Money Coming From?

Posted on January 31, 2009 by Isaac Gradman

Pennsylvania Attorney General Tom Corbett, whose office spent several months investigating deceptive mortgage practices alleged against Countrywide and its affiliates, has announced that Pennsylvania has joined the $8 billion settlement announced in October with Attorneys General from now over thirty … Continue reading →

Posted in Attorneys General, BofA, Countrywide, Greenwich Financial Services, investors, lawsuits, loan modifications, pay option ARMs, settlements, stipulated judgments, subprime | 1 Comment

Subprime Shakeout Discussed in Volokh Conspiracy Post On Formation of Aggregator Bank

Posted on January 26, 2009 by Isaac Gradman

On January 19, 2009, Eric Posner from the Volokh Conspiracy cited to the Subprime Shakeout in his article entitled “Why should the government buy toxic assets?” The post addressed the idea of an “Aggregator Bank” that would acquire the mortgage-backed … Continue reading →

Posted in Aggregator Bank, Attorneys General, Countrywide, Government bailout, Greenwich Financial Services, investors, loan modifications, predatory lending, securities, settlements, TARP, Volokh Conspiracy | Leave a comment

New Class Action Targets Former AIG CEO Cassano

Posted on January 16, 2009 by Isaac Gradman

Courthouse News Service reports that a new shareholders derivative complaint has been filed in the Chancery Court in Delaware against former American International Group Financial Products (AIG-FG) CEO and president Joseph Cassano for allegedly driving AIG to ruin by losing … Continue reading →

Posted in AIG, causes of the crisis, class actions, derivative lawsuits, incentives, litigation, loss causation, public perceptions, shareholder lawsuits, subprime | Leave a comment

Citigroup Becomes First Lender to Cave to Mortgage Principal Reductions by Bankruptcy Judges

Posted on January 10, 2009 by Isaac Gradman

It’s official: the first domino has fallen. The L.A. Times has reported that Citigroup Inc. has agreed that bankruptcy courts should be allowed to change the terms of mortgages, including ordering reductions in the principal amount of loans, as part … Continue reading →

Posted in bailout, bankruptcy, Barack Obama, cheap money, Citigroup, class actions, contract rights, homeowner relief, legislation, loan modifications, recession, Seventh Circuit, TARP, TILA, workouts | 2 Comments

Navigant Publishes Press Release on Subprime Litigation Study

Posted on December 24, 2008 by Isaac Gradman

Navigant Consulting has put out a press release with respect to its latest study, entitled Third Quarter 2008 Update: Breaking New Ground, which details the unprecedented rise in subprime mortgage-related litigation. Besides the eye-popping statistics showing the exponential rise in … Continue reading →

Posted in broader credit crisis, impact of the crisis, lawsuits, litigation, Navigant Consulting, recession, subprime | Leave a comment