Securities and Finance

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 Managing Director New York City +1 212 345 5913 lucy.allen@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. Denise Neumann Martin Managing Director New York City +1 212 345 5296 denise.martin@nera.com
Dr. Faten Sabry 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
Adam Warren Managing Director Chicago +1 (312) 573-2821 adam.warren@nera.com
Bradley A. Heys Director Toronto
New York City
+1 416 868 7312
+1 212 345 2691
brad.heys@nera.com
Dr. Ling Ling Ang Associate Director New York City
Washington, DC
+1 212 345 5409
+1 202 466 9259
lingling.ang@nera.com
Dr. Airat Chanyshev Associate Director New York City +1 212 345 7336 airat.chanyshev@nera.com
Dr. Alan Grant Associate Director White Plains, NY +1 914 448 4097 alan.grant@nera.com
Erin B. McHugh Associate Director London
New York City
+44 20 7659 8736
+1 212 345 2990
erin.mchugh@nera.com
Dr. Jordan Milev Associate Director New York City +1 212 345 5516 jordan.milev@nera.com
Dr. Stephanie Plancich Associate Director New York City +1 212 345 7719 stephanie.plancich@nera.com
Dr. Ignacio Franceschelli Senior Consultant New York City +1 212 345 2842 ignacio.franceschelli@nera.com
Ivelina Velikova Senior Consultant New York City +1 212 345 1160 ivelina.velikova@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. 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
Robert Mackay Affiliated Consultant Washington, DC +1 202 466 9291 rjmackay26@gmail.com
Dr. Marcia Kramer Mayer Affiliated Consultant New York City +1 212 345 2196 marcia.mayer.affiliate@nera.com
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