Financial Institutions and Banking

Credit Crisis Litigation

Credit Crisis Litigation

Over the past few years, credit markets contracted quickly, as several economic factors caused the credit boom to stop and a meltdown to start. These factors include the rise in short-term and long-term interest rates and the decrease in the rate of home price appreciation, as well as declines in home prices. The credit crisis affected all areas of subprime lending, including auto loans and credit cards, and spilled over into prime lending. Problems in the lending market affect a broad array of stakeholders. Examples of disputes that have arisen include allegations of predatory lending, misrepresentation and omissions related to the valuation of the loans and the profits from selling or servicing them, suitability of investments, breach of contract related to loan servicing, and fraudulent conveyance issues.

Resolving these issues requires a deep understanding of the economic foundations and roles of each stakeholder in the subprime lending market; an understanding of how that market performed over time; and a broad, objective analysis of the events that caused the meltdown. NERA experts have substantial background in the subprime lending market and experience with litigation among the stakeholders in that market, including our work in the previous subprime market crash in 1998.

We are working with clients to better understand and navigate the fallout from the dramatic collapse of the subprime lending industry. Our expertise in this area includes:

Bankruptcy Issues

  • Analyzing market factors and what was reasonably known at the time of a transaction
  • Determining fair market values of loan portfolio and other assets
  • Conducting econometric analysis of defaults
  • Assessing solvency and capital adequacy
  • Examining fraudulent conveyance issues
  • Performing deepening insolvency analysis

Portfolio Performance Analysis

  • Analyzing causes of collateral failure
  • Examining due diligence procedures
  • Using statistical analysis to evaluate the quality of loan servicing

Securities Fraud Class Actions

 

Complex Commercial Disputes

 

Accounting

  • Estimating expected loan losses
  • Assessing collateral performance reporting
  • Analyzing accountant and auditor liability
  • Conducting forensic accounting analyses
Name Title Location Phone Email
Dr. Andrew Carron Chairman New York City
London
+1 212 345 5407
+44 20 7659 8500
andrew.carron@nera.com
Lucy P. Allen Managing Director New York City +1 212 345 5913 lucy.allen@nera.com
Dr. Patrick Conroy Managing Director
Chair of NERA's Securities and Finance Practice
New York City +1 212 345 1466 patrick.conroy@nera.com
Dr. Alan Cox Managing Director
Chair of NERA's Intellectual Property Practice
San Francisco
Toronto
+1 415 291 1009
+1 415 291 1009
+1 416 868 7314
alan.cox@nera.com
Dr. Anne Gron Managing Director Chicago +1 312 573 2850 anne.gron@nera.com
Dr. Vinita Juneja Managing Director
Chair of NERA's White Collar, Investigations and Enforcement Practice
New York City
London
Toronto
+1 212 345 3148
+44 20 7659 8618
+1 416 868 7314
vinita.juneja@nera.com
Dr. Faten Sabry Managing Director
Bankruptcy Practice Chair
New York City
London
+1 212 345 3285
+44 20 7659 8618
faten.sabry@nera.com
Dr. David Tabak Managing Director New York City +1 212 345 2176 david.tabak@nera.com
Dr. Sharon Brown-Hruska Director Washington, DC +1 202 466 9222 sharon.brown.hruska@nera.com
Oksana Kitaychik Associate Director New York City +1 212 345 1094 oksana.kitaychik@nera.com
Dr. Jordan Milev Associate Director New York City +1 212 345 5516 jordan.milev@nera.com
Robert Patton Associate Director Toronto
London
New York City
+1 416 868 7318
+44 20 7659 8620
+1 212 345 3269
robert.patton@nera.com
Dr. Airat Chanyshev Senior Consultant New York City +1 212 345 7336 airat.chanyshev@nera.com
Dr. James Overdahl Affiliated Industry Expert Washington, DC +1 202 547 3035 joverdahl@deltastrat.com
Mark L. Berenblut Affiliated Consultant Toronto
New York City
London
+1 416 868 7311
+1 917 475 0020
+44 20 7659 8644
mark.berenblut.affiliate@nera.com
Dr. James Jordan Affiliated Consultant Washington, DC +1 202 466 9263 james.jordan.affiliate@nera.com
Title Type Author
Expert Analysis: Financial Crisis Anniversary - Trends In Credit Crisis Settlements Published Article By Faten Sabry, Sungi Lee, and Linh Nguyen
PDVSA’s Peculiar Oct. ’22 Bond May Carry Elevated Risks Report By Timothy McKenna and Raphael Starr
Securities Class Actions: 2016 Full-Year Review and Mid-2017 Flash Update Published Article By Stefan Boettrich and Svetlana Starykh
BSA/AML Compliance and Enforcement: An Update for the Securities and Derivatives Indu... Published Article By. Sharon Brown-Hruska
Not All MBS Settlements Are Equal White Paper By Faten Sabry, Sungi Lee, and Linh Nguyen
Trends in Canadian Securities Class Actions: 2016 Update Report By Bradley A. Heys & Robert Patton
Trends in Regulatory Enforcement in UK Financial Markets 2015/16 Year-End Report Report By Robert Patton and Erin McHugh et al
The Use of ABX Derivatives in Credit Crisis Litigation Published Article By Dr. Faten Sabry with Dr. Ethan Cohen-Cole
Credit Crisis Litigation Update: It is Settlement Time Working Paper By Dr. Faten Sabry, Eric Wang, and Joseph Mani
The Use of ABX Derivatives in Credit Crisis Litigation Working Paper By Dr. Faten Sabry with Dr. Ethan Cohen-Cole