Subprime/Credit Crisis Developments

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With the House of Representatives not set to meet again until Thursday, the Senate has stepped in with a revised version of the $700 billion bailout bill, which it hopes will garner greater support in the House of Representatives.  Last Monday, the House of Representatives rejected the Emergency Economic Stabilization Act of 2008 (the “Act”) by a vote of 228-205. 

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Read More BREAKING NEWS: Senate Proposes Revised Bailout Bill, Will Vote Tonight

In early 2007, a purported class of investors in NovaStar Financial Corporation, a residential mortgage lender that made a percentage of its loans to subprime borrowers, sued NovaStar and certain of its directors and officers in the United States District Court for the Western District of Missouri. …
Read More NovaStar Plaintiffs Appeal Subprime Dismissal

As an update to our previous post, by a vote of 228-205 the House of Representatives rejected the $700 billion bailout bill, formally known as the Emergency Economic Stabilization Act of 2008, which was designed to aid the struggling U.S. economy. 

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Read More UPDATE: House Fails to Pass Bailout Bill

While Congressional leaders continue to negotiate the terms of a bailout plan to relieve mortgage lenders and investment banks of their distressed mortgage debt, a shareholder derivative action has been filed against PFBB Bancorp (“PFBB”) and several of its directors and officers in the Delaware Chancery Court to enjoin a proposed merger between PFBB and FBOP Bancorp (“FBOP”). A copy of the complaint, filed on September 22, 2008, can be found by clicking here. 

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Read More Proposed $700 Billion Bailout Plan Sparks Shareholder Derivative Action

As we previously reported here, on September 16, 2008 the Federal Reserve Bank of New York (“Federal Reserve”) agreed to issue American International Group, Inc. (“AIG”) a two year, $85 Billion secured revolving credit facility.  On September 23, 2008 AIG announced it signed a definitive agreement with the Federal Reserve with respect to such credit facility. 

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Read More UPDATE: AIG Signs Definitive Agreement with Federal Reserve

President Bush and Congress came to terms this weekend on the $700 billion bailout bill designed to aid the struggling U.S. economy.  It is expected that the House of Representatives will vote on the “Emergency Economic Stabilization Act of 2008” (the “Act”) today, with the Senate to follow

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Read More BREAKING NEWS: Bailout Bill Terms Finalized, Congress Expected to Vote Today

Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department will host a webinar on the above topic on Monday, September 29, 2008 at 12:00 PM EDT / 5:00 PM BST. …
Read More Edwards Angell Palmer & Dodge Webinar: ‘Mortgage-Backed and Auction-Rate Securities: Structure, Litigation and Insurance Issues’

“Given the turbulence affecting the financial services industry these days—including recent announcements concerning Lehman Brothers—you may be wondering what would happen to your securities account if your brokerage firm closed its doors.” 

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Read More FINRA Publishes Release Entitled “If a Brokerage Firm Closes Its Doors”

Given the recent volatility in the credit and stock markets, there have been increasing calls for regulation of the $62 trillion credit default swap (“CDS”) market.  As we reported yesterday, New York State, determined to take the lead in the regulation of CDS contracts, announced that it would regulate certain CDS contracts as insurance. …
Read More S.E.C. Chairman Cox Seeks Federal Regulation of Credit Default Swaps

Today, the AIG Task Force (“Task Force”) of the National Association of Insurance Commissioners (“NAIC’) held a public briefing during which it outlined the Task Force’s efforts with respect to overseeing AIG’s insurance operating units of the troubled insurance giant.

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Read More BREAKING NEWS: NAIC Public Briefing Regarding AIG