The daily news about the subprime lending market has intensified with recently reported increased scrutiny from government regulators. In late June 2007, Securities and Exchange Commission (SEC) Chairman, Christopher Cox, testified before Congress that the SEC had a dozen open inquires stemming from the crisis in the subprime-related collateralized debt obligations (CDO) market. Plaintiff's firms have already begun filing lawsuits against the banks and other issuing and servicing entities that participated in these deals and against funds that purchased the resulting securities. Lawsuits have included federal securities, ERISA and state law claims. More recently, CNNMoney.com reported that the SEC was looking at "all players" in the subprime lending market to determine if there were violations of federal securities laws covering a broad spectrum, from accounting misstatements to insider trading.
Problems with subprime lending are reverberating worldwide and European regulators are also increasing their scrutiny of this market. In the UK, where one mortgage lender was given a liquidity support facility by the Bank of England (the Bank) in early September, the Financial Services Authority (FSA) and the Bank are assisting a governmental select committee in analyzing the current market turmoil.
The ramifications for business stemming from the current problems in the subprime lending market are difficult to predict with certainty. What is clear, however, is that the impact will present a variety of challenges. Europe is unlikely to escape this fall-out and multi-jurisdictional problems will arise for market participants. To properly respond to the crisis, the participants in this market will need advisors with understanding and insight into a wide range of related topics including finance, financial restructuring, government investigations and prosecutions, litigation, and regulatory practices both in the US and internationally. Mayer Brown's team consists of attorneys from across these practice areas. We provide our clients with comprehensive advice and a strong, coordinated response to any challenges.
Our team includes:
- Accomplished litigators who have extensive experience representing our clients in litigation and before various government enforcement agencies concerning these financial products
- Preeminent financial services regulatory and government relations practitioners with broad experience before all of the pertinent regulatory agencies as well as before the U.S. Congress
- Internationally renowned finance attorneys with vast experience in the creation and structure of CDOs, the securitization and sale of residential mortgage loans and development of innovative financing transactions for banks and state licensed mortgage lenders
- Leading financial restructuring and bankruptcy practitioners who are seasoned in the particular issues that arise when these products become distressed
Breadth of Experience
Securities Enforcement & Investigations. We have one of the largest groups of former SEC and NASD enforcement attorneys and federal prosecutors - more than 30 attorneys - located throughout our US offices. Our team includes a former SEC Associate Director of Enforcement, a former Assistant Chief Trial Attorney, and several former Branch Chiefs, among others. In addition, we have numerous former Assistant US Attorneys who have collectively tried hundreds of cases and who were chiefs of their offices' criminal divisions. These attorneys are at the forefront of emerging SEC and Department of Justice (DOJ) initiatives and can assist clients with internal investigations and settlement negotiations with regulators and defend clients in civil or criminal actions brought by the Government.
Securities Litigation. Our attorneys have been involved in most of the high-stakes cases of the last decade such as Cendant, Worldcom, Global Crossing and Enron. Our internationally recognized securities litigation and corporate governance practice brings together the highest level of legal experience and talent to counsel clients in matters involving all aspects of securities litigation. Over the years, Mayer Brown has developed a reputation as a "go-to" firm for clients that include issuers, accounting firms, investment banks, investment advisers and broker-dealers, as well as their officers and directors. Our attorneys offer a broad base of experience, not only in civil litigation, but also as veterans of key governmental positions. That experience extends to enormous expertise in the field of shareholder class actions and derivative litigation.
Supreme Court and Appellate Practice. Our Supreme Court and Appellate practice is the largest, most experienced, and successful such practice of any law firm in the United States. We are ranked as the top appellate practice in the country by both Legal 500 United States and Chambers USA 2007. We have a strong record of success in important cases in the securities, banking and related areas. Attorneys in our group have argued more than 200 cases before the Supreme Court - including ten in the three most recent terms. Indeed, during some terms, no team of attorneys other than the Solicitor General's Office has argued more cases than we have. Members of this group work with trial lawyers at the beginning of novel cases to make sure that the groundwork is laid for presenting the best arguments at every stage of the proceedings and preserving issues for appeal. This group has helped our clients with case-terminating motions and has preserved these victories on appeal.
Real Estate Finance and Securitization. Mayer Brown's real estate mortgage securitization practice is comprehensive and international in scope. We have experience in structuring securitizations of first-lien, home-equity and subprime residential mortgages, as well as securitizations and commercial mortgages and resecuritizations of mortgage-backed securities. Mayer Brown attorneys have been actively involved in CDO transactions going back as far as our involvement with the 1988 ground-breaking FRENDS transaction. Our broad experience, reaching across industries and borders, enhances our ability to stay ahead of CDO market trends and developments, and provides valuable information regarding market custom and practice, including insights as to appropriate compromises among various parties interested in CDO transactions. Our firm is also active in the representation of industry groups, which we routinely advise in negotiations with the Financial Accounting Standards Board. One of our partners is a founding member of the American Securitization Forum, the primary trade group and advocate for the U.S. securitization industry.
Financial Services Regulatory & Enforcement. Our financial services regulatory and enforcement practice is one of the largest and most diverse of its kind, with more than 44 attorneys - including several former regulators - working almost exclusively on regulatory, compliance, strategic and enforcement matters for banks, thrifts, finance companies, mortgage lenders, broker-dealers, investment advisers and funds. Mayer Brown's financial services regulatory practice is particularly well-qualified to help clients navigate the complex and rapidly evolving legislative, regulatory, policy, enforcement and operational issues facing the subprime market. Our financial regulatory practitioners have successfully assisted financial services clients contend with similar challenges in the past and the breadth of their experience affords them unique perspectives that provide critical advantages when representing clients before Congress or the regulators.
Restructuring, Bankruptcy & Insolvency. Mayer Brown has one of the longest-established restructuring, bankruptcy and insolvency practices of any major law firm. With more than 50 attorneys in the U.S. and Europe, our group has broad, international experience representing creditors and debtors in situations ranging from negotiating and effectuating restructurings and recapitalizations to representing creditors in connection with the defense of preference, fraudulent conveyance and lender liability claims. We also represent clients in connection with significant merger and acquisition transactions involving companies in bankruptcy and other distressed situations. In the UK, the practice also extends to representing licensed insolvency practitioners and management on all issues, both contentious and non-contentious arising from distressed situations.
