Three weeks after the federal government seized control of Freddie Mac and Fannie Mae – the two biggest mortgage companies in the United States – news reports indicate that on September 26, 2008, Fannie Mae and Freddie Mac each received federal grand jury subpoenas from the United States Attorney’s Office for the Southern District of New York.
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Subprime/Credit Crisis Developments
Government Officials Announce Three Measures Taken to Shore-Up the United States Financial Market
A joint statement was issued by United States Treasury Secretary Henry Paulson, Federal Reserve Chairman Benjamin Bernanke, and Federal Deposit Insurance Corporation (“FDIC”) Chairman Sheila Bair regarding the role each governing body will play in bolstering public confidence in the United States banking system and the restoration and stabilization of market liquidity needed to support economic growth.
Invitation To Attend “The Global Credit Crisis And The International Insurance Industry” Symposium on November 7th in New York City
We are pleased to announce that AIDA US, the American Chapter of the International Insurance Law Society, will hold an afternoon seminar immediately following the ARIAS•US Conference on Friday, November 7th, from 1:30-4:15PM. “The Global Credit Crisis and the International Insurance Industry” brings together leaders in the field whose update
BMA Says Bermuda is Well Placed for the Current Challenging Environment in the Financial Markets
By Troutman Pepper Locke on
Mr. Matthew Elderfield, CEO of the Bermuda Monetary Authority (BMA), issued a press statement on 7 October 2008 to alleviate concern and uncertainty in Bermuda arising from the widespread instability within the global financial sector. …
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Treasury Secretary Paulson Selects Interim Head of Financial Rescue Program
By Troutman Pepper Locke on
Neel Kashkari has been named the interim head of the new Office of Financial Stability within the United States Department of Treasury. The Office of Financial Stability was created under the Emergency Economic Stabilization Act of 2008, previously discussed here. …
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UPDATE: House Passes Revised Bailout Bill
Last Friday, the House of Representatives passed the Senate’s revised version of the $700 billion bailout bill, H.R. 1424, by a vote of 263-171. This was a significant turnaround from last Monday’s House vote of 205-228, which rejected the first version of the bailout bill. H.R. 1424 was signed into law by President Bush the same day. …
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Bermuda Monetary Authority (“BMA”) Monitoring the Impact of Sub-Prime
By Troutman Pepper Locke on
Posted in Bermuda, Subprime/Credit Crisis Developments
The BMA is taking a proactive role in managing the ripple effects of sub-prime on Bermuda in a way that mitigates risk effectively. In response to the sub-prime mortgage crisis, the BMA has been conducting market surveys since August 2007 to assess the impact of this global issue. …
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New York State Insurance Department and Bermuda Monetary Authority Sign Cooperation Agreement
On September 29, 2008, New York State Insurance Superintendent Eric Dinallo and Chief Executive Officer Matthew Elderfield of the Bermuda Monetary Authority (“BMA”) signed a memorandum of understanding (the “MoU”). …
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UPDATE: Senate Passes Revised Bailout Bill, Now Up to the House
As we discussed here, the Senate voted on a revised version of the $700 billion bailout bill last night. After more than three hours of floor debate, it passed by a vote of 74 to 25. The House is expected to vote on the Senate’s version of the legislation on Friday.
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Read More UPDATE: Senate Passes Revised Bailout Bill, Now Up to the House
S.D.N.Y. Dismissal In Amex Indicates How Courts Should Analyze Suits Spawned By Credit Crisis
The United States District Court for the Southern District of New York recently dismissed for a second time a federal securities class action against American Express Co. (“Amex”). The action, entitled In re: American Express Co. Securities Litigation, involves substantial losses by Amex from investments by one of its subsidiaries in high-risk, high-yield debt instruments.