Mortgages and CDOs – Gifts that Keeps on Giving to Lawyers
Mortgage-related securities are a continuing gift to lawyers. In the early 2000s, hundreds or thousands of lawyers made a living just cranking out mortgage-related securities, such as CDOs. Today, the mortgage debacle of the 2000s remains a continuing gift to litigators. Now JP Morgan faces more civil or cirminal charges, and some banks are paying lawyers to file frivolous challenges to clearly proper exercises of eminent domain power (used in this instance to condemn rights related to mortgage contracts). And of course Goldman’s Fabulous Fab recently was find liable for fraud in selling the securities, having duly employed plenty of lawyers for defense efforts. Litigators appreciate all the business.