Commercial Litigation and Damages

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
Lucy P. Allen Senior Managing Director New York City +1 212 345 5913 lucy.allen@nera.com
Bradley A. Heys Senior Managing Director Toronto
New York City
+1 416 868 7312
+1 212 345 3000
brad.heys@nera.com
Dr. Vinita Juneja Senior 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. Denise Neumann Martin Senior Managing Director Miami +1 305 808 7880 denise.martin@nera.com
Dr. Faten Sabry Senior Managing Director
Chair of NERA's Global Securities and Finance Practice
Bankruptcy Practice Chair
New York City
London
+1 212 345 3285
+44 20 7659 8618
faten.sabry@nera.com
Dr. Ling Ling Ang Managing Director Washington, DC
Chicago
+1 202 466 9259
+312 573 2827
lingling.ang@nera.com
Dr. Jordan Milev Managing Director New York City +1 212 345 5516 jordan.milev@nera.com
Robert Patton Managing Director Toronto
London
New York City
+1 416 868 7318
+44 20 7659 8620
+1 212 345 3000
robert.patton@nera.com
Dr. Airat Chanyshev Director New York City +1 212 345 7336 airat.chanyshev@nera.com
Mark L. Berenblut Affiliated Consultant Toronto
New York City
London
+1 416 868 7311
+1 917 475 0020
+44 20 3769 1096
mark.berenblut.affiliate@nera.com
Dr. Sharon Brown-Hruska Affiliated Consultant Washington, DC +1 202 466 3510 sharon.hruska.affiliate@nera.com
Dr. Andrew Carron Affiliated Consultant New York City
London
+1 212 345 5407
+44 20 7659 8500
andrew.carron.affiliate@nera.com
Dr. Alan Cox Affiliated Consultant San Francisco +1 415 291 1000 alan.cox.affiliate@nera.com
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