Sophisticated Institutional Investors “Jump on the Bandwagon” – Sue to Recoup Losses in Mortgage-Backed Securities and CDOs


Sophisticated institutional investors are bringing claims in waves against Wall Street financial institutions for fraud in the sale of mortgage backed securities, CDOs and related exotic investments. Most recently, Charles Schwab Corp. is among a group of financial institutions suing Goldman Sachs for making material misrepresentations and omissions in connection with the offer and sale of mortgage-related securities, according to Liz Moyer and Brett Philbin in their Wall Street Journal article, “Goldman Tallies Possible Litigation Losses.”

According to the article, Goldman Sachs disclosed in its annual report that plaintiffs suing it over losses from mortgage-related securities had cumulative losses of approximately $457 million as of December. The plaintiffs reportedly include Charles Schwab & Co., the Federal Home Loan Banks of Seattle, Chicago and Indianapolis, Cambridge Place Investment Management Inc., Basis Yield Alpha Fund (Master) and Landesbank Baden-W?rttemberg.

Goldman said it is expecting additional lawsuits against it related to mortgage-related offerings, loan sales, CDOs, and servicing and foreclosure activities.

Page Perry has over 125 years collective experience representing institutional and individual investors in securities-related litigation and arbitration all over the country. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 40 occasions.