Financial Services Report, Spring 2008
In this issue:
Ahead of the Summons
It is time to play pin the blame on the subprime crisis. Half of all observers blame Greed, another half blame
Wall Street, and the third half say that’s redundant. Baltimore blames Wells Fargo Bank, and not just for the
subprime crisis either . . . also urban decay, youth gangs, drugs, bad posture, and Paris Hilton’s new movie.
We have our own plan, which is to lay all this at the doorstep of Alan Greenspan, ring the doorbell, and run.
The press wallow in gloom, which means that the positive aspects of the subprime crisis are getting overlooked. Our Top Three: (i) Fewer Hummers straddling two parking spaces; (ii) easier to get a power table at Per Se; and (iii) when was the last time you heard a noisy radio ad from a mortgage broker? I have a confession to make. It’s my fault. My name is Jérôme Kerviel. You may say that I exposed Société Générale to $70 billion in potential losses, but mon dieu! Look at the bright side, être optimiste. How many of you go to Las Vegas and lose only 10%? Excuse moi, but just one more jack of spades and Bernanke would have been serving me foie gras by the tonneau. Spit out your gum and sit up straight. Lots of stuff happened this quarter. The hot ticket is the subprime crisis, which is playing to packed houses in Congress. Capitol Hill will be a battleground over bills to revamp
mortgage underwriting standards, force lenders to engage in loan mitigation, and impose caps on interchange fees. The state legislatures have seized the privacy initiative, with five states moving legislation that would make merchants liable to banks for mass data compromise. RESPA litigation took a plot twist in the Eleventh Circuit. Preemption was also a big deal....
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.