MS&K has formed a dedicated practice group to assist clients facing the wide range of business and legal challenges sparked by the subprime mortgage lending crisis.

MS&K’s Economic Recovery Practice Group is an interdisciplinary team of litigation, bankruptcy and corporate lawyers. The practice group taps into the expertise of 30 MS&K lawyers who specialize in the areas of financial services, securitizations, bankruptcy and insolvency, litigation and investigations, securities, real estate, capital markets, hedge funds, class actions and insurance.

The firm’s attorneys have been engaged in all aspects of securitization and structured finance transactions for over 20 years. The matters we have handled have included transactions insured by all of the major surety bond issuers, as well as senior/sub-structured transactions and asset-backed conduit transactions. We have represented numerous clients in this area, ranging from insured financial institutions to subprime auto finance companies.

The firm has been working on commercial litigation related to subprime lending since 2003. Our significant experience in this area includes multi-district litigation involving allegations of financial fraud and the enforceability of policies purporting to insure payments under leases and claims totaling over $400 million. This case foreshadowed many of the legal issues that are presently exploding, including the securitization of subprime obligations, fraud by originators and syndicators, due diligence issues, insurance and bond coverage considerations, and various insolvency issues.

The Economic Recovery Practice Group assists banks, investment banks, hedge funds, warehouse lenders, mortgage originators, underwriters, and others involved in the subprime mortgage industry both prior to and throughout the legal process.