Corporate & Securities Law

Attorneys at SNSFE continue to investigate investment losses related to subprime mortgage investments.  But the probe is widening in a criminal and civil sense.  In today's news, there is a listing of a sampling of investigations of financial firms over the subprime downturn: 

• The Brooklyn U.S. Attorney's office has launched criminal investigations of Bear Stearns and UBS. 
• The Manhattan U.S. Attorney's office has requested information on Merrill. 
• The SEC has three dozen probes, including formal ones of Merrill, UBS, and others of Bear, Morgan Stanley, and a review of Citigroup. 
• The FBI is investigating 14 companies, from mortgage originators to Wall Street, for accounting fraud and insider trading. 
• The New York Attorney General has subpoenaed Bear, Deutsche Bank, Morgan Stanley, Merrill and Lehman Brothers. 
• The Massachusetts Secretary of State's office now has formally sued Merrill Lynch over mortgage-backed securities sold to Springfield, Mass., and it's probing Bear Stearns. 

In addition, Maine securities officials are examining the circumstances surrounding Merrill's role in the sale of commercial paper issued by a SIV known as "Mainsail II," an affiliate of London hedge fund Solent Capital Management LLP, to the state treasury department in August for $20 million.  Shortly after that sale, Standard & Poor's Corp. downgraded Mainsail from the highest rating to "junk" status, and the issuer defaulted on an interest payment that same month. 

All of this spells long, engaging investigations of this activity.  We welcome any comments and insights that our listeners may provide.