The Fallout from the Subprime Lending Crisis

5/9/2008

Lawsuits arising from the subprime lending crisis are outpacing the rate of litigation that emerged from the savings and loan meltdown, according to a recent study.

Suffolk University's Center for Advanced Legal Studies will present a one-day course, "The Fallout from the Subprime Lending Crisis," on Monday, May 19, 2008.

The course will feature U.S. Rep. Barney Frank in a panel discussion on "Regulatory Restrictions -- Applicable Federal Massachusetts Laws and Regulations." 

Boom, then collapse

Lenders wrote $625 billion in subprime mortgages in 2005, nearly four times the total in 2001. The boom brought in big fees to mortgage brokers, lenders, banks, and ratings agencies.

Yet the boom times also resulted in questionable practices, and the collapse of the subprime bubble has had a domino effect in the financial markets.

Criminal action could be looming. The FBI is investigating 14 companies for possible accounting fraud, insider trading, or other violations that could result in criminal charges. The probe is expected to involve firms across the financial services industry.

"The Fallout from the Subprime Lending Crisis" is co-sponsored with the Law School's Business Law and Financial Services Concentration and Moakley Institute, the Federal Bar Association, and the Massachusetts Mortgage Bankers Association.

The course will be held from 9 a.m. to 3 p.m. Monday, May 19, 2008 at Suffolk University Law School, 120 Tremont St., Boston.

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